Published on March 09, 2024 20:16 GMT+00:00edited on March 09, 2024 20:19 GMT+00:00

MakerDAO has implemented a slate of temporary changes to fees meant to shore up the protocol as a period of "increased volatility and bullish sentiment" has caused its dollar-pegged stablecoin dai's reserves to diminish. 

The proposal was prompted by a sudden drop in dai supply from $5 billion to $4.4 billion over the past week, according to the proposal, which was submitted by BA Labs, a member of Maker's Stability Advisory Council. While dai remains over-collateralized, since some of that collateral is placed in real-world asset (RWA) vehicles, a potential liquidity crunch could result if more dai selling continues. 

"Liquid stablecoin reserves and reserves deployed to RWAs are more than sufficient to sustain the increasing pressure generated by the potential bullish market …