Decentralized Financial Lending and Stablecoin Protocol MakerDAO has adjusted stability fees for a variety of crypto assets used as collateral on the platform.

The move comes as demand for DAI and other stablecoins has cooled amid a recent retreat in the crypto market, with Maker hoping to spur DAI mining demand through a drop fee.

⚠️ Change of manufacturer protocol ️ (1/5)
ETH-A stability fee: 5.5% → 3.5%
ETH-B stability fee: 10% → 9%
ETH-C stability fee: 3% → 1%
WBTC-A stabilization fee: 4.5% → 3.5%
LINK-A stabilization fee: 5% → 4%
YFI-A stabilization fee: 5.5% → 4%

– Maker DAI bot (@MakerDaiBot) June 21, 2021

When users deposit crypto assets to mint the protocol’s stablecoin, DAI, there is a stability fee on the debt, essentially a continuously accrued interest rate that is due upon repayment of borrowed tokens.

Maker’s fluctuating stability fee is intended to maintain DAI’s dollar exchange rate because if the holder of a collateralized debt position (CDP) uses DAI more than the market needs, the price of the stable token can drop below $ 1.

The increase in the stability fee will increase the cost of borrowing DAI and reduce the need for token mining. Conversely, lowering fees, as MakerDAO just did, will reduce the cost of ingesting DAI to fuel demand.

DAI’s circulating supply rose to an all-time high of $ 5.1 billion on June 16, but has since declined 6% to its current level of around $ 4.8 billion. Demand for stablecoins has slowed amid a rapid decline in crypto asset prices and reduced DeFi activity.

Connected: Analyst says DeFi and stablecoins hold up while the crypto market explodes

MakerDAO token holders are currently voting on the implementation of the instant loan function. If the proposal were adopted, it would allow individuals to mint up to 500 million Dai for quick loans, removing existing restrictions that limit the value of loans based on the volume of liquidity available in the banking group.

⚡️ Flash crafting is here. ️

The location management / DeFi arbitrage will see a huge improvement in terms of user experience. Maker is offering 500 million ERC3156 compliant flash mints after the weekly spell is over. Https://t.co/JJvHoSGENH

– Sam MacPherson (@sgmacpherson) June 18, 2021

At the time of writing, 3,184 MKR governance tokens have been raised to support the proposal.

MKR is currently down 20% in the past 24 hours – it fell from $ 2,600 to an intraday low of $ 2,060 before rebounding marginally to $ 2,200 at press time.