Delphi Digital published an article stating that MakerDAO recently increased the DAI savings rate to 8%, and this expansion has had a significant financial impact.
With the DSR currently set at 8%, Maker’s annual cost is estimated at $54 million. Therefore, this would reduce Maker’s projected annual profit from $84M/year to $41M/year.
Nonetheless, it can be seen as a customer acquisition cost to reignite DAI demand. The enhanced DAI DSR offers an attractive on-chain alternative to US Treasuries.
Given its high yield, DSR utilization is likely to stabilize below 35%, in line with the current Treasury rate benchmark of 5.5%.
This strategic move is designed to advance Maker’s growth and lay the groundwork for the introduction of the Maker SubDAO, which aims to increase the demand and utility of the DAI and MKR tokens.