March 22, 2019, 4:34PM EDT
• 6 min read

MakerDAO Governance Call: Despite 0.75% supply decrease Dai continues to trade down

Quick Take

  • As Dai continues to trade below its dollar peg, MakerDAO stakeholders have initiated an Executive Vote to raise the Stability Fee by an additional 4% APR
  • While Dai outstanding supply is down 0.75% over the past 5 days, exchange and OTC volume has remained largely flat, suggesting CDP holders are borrowing Dai, rather than buying, in order to wipe their debt
  • The emergence of a CDP interest rate prediction market may further inhibit the effectiveness of the Stability Fee to engender demand 

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