$1 Million Loans Are Being Minted on MakerDAO

gepubliceerd op by Coindesk | gepubliceerd op

Today, the fifth-largest loan position in the MakerDAO system minted 1 million new DAI tokens.

The first loan issuing 1 million new DAI stablecoins was made in late June by the seventh-largest collateralized debt position in the MakerDAO system.

CDPs are essentially programmatic loans taken out by users who lock-in holdings of ether to draw out subsequent holdings of DAI from the MakerDAO system.

The total supply of DAI now stands at roughly 91 million and may soon exceed a record high of 95 million.

with a debt ceiling of 100 million DAI currently in place - that growth is not without potential repercussions.

"If it starts hitting that 100 million and people still want to draw more DAI, you may have to really increase the stability fee. It all depends on what the governance decides to be about that."

Stepping back, the MakerDAO "Stability fee" is an interest rate that all users are required to pay back into the MakerDAO system once they close out their DAI loans.

Given the bullish market trend, McDonald tells CoinDesk that MakerDAO token holders may soon have to consider increasing the hard supply cap on DAI, which currently sits at 100 million.

With multi-collateral DAI, users will be able to mint new DAI tokens by locking holdings of alternate cryptocurrencies beyond just ETH. Each cryptocurrency will have its own unique supply cap, called a "Debt ceiling," which ensures sufficient diversification of assets backing DAI's value.

Since the MakerDAO lending protocol went live on the ethereum blockchain in 2017, the DAI supply has seen strong upward growth for nearly a year and a half.

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