What is MakerDAO building? These new proposals have the answer
- MakerDAO made plans to increase stability fees for various versions of wrapped BTC.
- A new vote was also announced to add Coinbase Custody as a type of collateral asset to the MakerDAO protocol.
Despite losing the top spot to Lido in terms of TVL a few months ago, MakerDAO [MKR] has worked relentlessly to make improvements to its protocol.
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Making new changes
According to MakerDAO’s recent tweet, WBTC (Wrapped Bitcoin)-A, WBTC-B, WBTC-C, and GNO- A stability fees are being increased to 4.9% in order to match the Yield Collateral Benchmark Yield.
This is an important notice to all WBTC-A, WBTC-B, WBTC-C, and GNO-A users.
Per the Maker Constitution's Scope Frameworks, the WBTC-A, WBTC-B, WBTC-C, and GNO-A Stability Fees are being increased to 4.9% in order to match the Yield Collateral Benchmark Yield.
— Maker (@MakerDAO) April 18, 2023
The stability fee is an interest rate charged to borrowers who use their cryptocurrency as collateral to generate a loan (known as a “vault”).
By raising the stability fee, MakerDAO aims to maintain the stability of the system by ensuring that the value of the collateral remains greater than the value of the loan.
The execution of this change to the protocol will occur 48 hours after it is approved by the MakerDAO governance through voting.
The Coinbase angle
The MakerDAO community has also put together a vote to decide whether Coinbase Custody (RWA014) should be added as a new type of collateral asset in the Maker Protocol.
Coinbase offers an institutional USDC rewards program for eligible customers who hold USDC in their Coinbase Custody account. By adding Coinbase Custody as a collateral asset in the Maker Protocol, users could potentially earn rewards through this program.
The vote will take place within the MakerDAO governance community, and the outcome will be decided by a simple majority. If the “Yes” option wins, then the Maker Protocol will move forward with adding Coinbase Custody as a new vault type in the protocol.
However, this is just the first step. After the vote passes, an executive vote will need to be scheduled. This vote is to officially onboard the Coinbase Custody (RWA014) as the Protocol Engineering Core Unit.
Realistic or not, here’s MKR’s market cap in BTC terms
Based on the executive vote, the changes will become active in the Maker Protocol after the GSM Pause Delay. This delay is a period that allows users to review and challenge the proposed changes before they are implemented.
State of the protocol
At press time, the revenue and earnings generated by MakerDAO continued to decline over the past month. It is yet to be determined whether the changes being made to the protocol could impact its earnings positively.