March 6, 2019, 6:43PM EST
• 9 min read

Dai falls below dollar peg, kicking off a monetary policy quandary

Quick Take

  • MakerDAO has become a victim of its own success, with a supply glut causing Dai to temporarily trade below its $1 peg
  • Maker stakeholders are set to vote on a stability fee hike, increasing borrow rates from 1.5 to 3.5 percent
  • It remains to be seen whether the monetary policy amendment will have its intended consequence, with extraneous factors simultaneously affecting supply and demand dynamics 

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