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The community of MakerDAO, one of the largest decentralized finance (DeFi) protocols, voted to increase the rewards rate for its DAI stablecoin to 1%.
Some 71% of voters favored a 1% hike, the highest available option, during the voting, which ended Thursday.
Increasing the rewards known as the DAI Savings Rate (DSR) means that investors can earn a 1% annualized return on their DAI holdings, giving an incentive for investors at a time when decent yields in crypto are scarce. The return is still much lower than what is available for traditional yield-generating assets such as U.S. government bonds.
MakerDAO issues the $5 billion DAI stablecoin, which is backed by more than $7 billion worth of assets in its reserves. The protocol is led by a decentralized autonomous organization (DAO), in which holders of the protocol’s governance token maker (MKR) can vote on proposals.
Read more: DeFi Giant MakerDAO Voting on Hiking DAI Stablecoin Rewards
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