MakerDAO DAI Savings Rate: Increase in yield to 3.49% and sDAI
The DAI Savings Rate (DSR)
The Dai Savings Rate (DSR) is a feature of the MakerDAO smart contract system that allows holders of DAI, a stablecoin, to earn a portion of the revenue generated by MakerDAO. This is done by depositing DAI into the DSR, where it becomes part of a larger pool used by MakerDAO to generate income through mechanisms like stability fees. The revenue is then distributed to DAI holders based on the amount they've deposited and the current DSR rate.
Savings DAI (sDAI)
sDAI is a new tokenized version of DSR-enabled DAI, powered by the DSR (Dai Savings Rate). It's an ERC-4626 token designed to offer better integrations and gas efficiency for an improved user experience.
The DSR recently increased from 1% to 3.49%, providing a higher yield to all DAI holders who opt in. sDAI is a tokenized EIP-4626 compliant wrapper for DAI deposited into the DSR, converting the DSR-deposited position into a token that users can hold and use.
This can be accessed on: Spark Protocol app
What does this mean?
We are now able to access the safest yield in DeFi, MakerDAO's collateral yield that includes a large amount of real world assets and Maker's stability fees. Although that yield is still lower than the US treasury bonds, it has became more competitive. With the creation of sDAI, I expect more DeFi protocols to build upon it and provide more utility down the road. The lowest hanging fruit of such tokens would be a leverage vault that would help users to increase their yield on the asset.
Mantle Network Update & Proposal
The Mantle Network Testnet successfully completed its v0.4.0 update which led to the creation of a new token, $MNT, on the Goerli test network and the rebranding of $BIT to $MNT on the Mantle Network Testnet.
On layer 2 (L2), the $BIT token has been rebranded to $MNT following BIP-21. This change only affects the token symbol, not the contract.
On Goerli, a new token contract for $MNT has been deployed, along with a migration contract to facilitate the conversion of Goerli $BIT to Goerli $MNT, which can then be bridged and used on the Mantle Network Testnet.
With this, they have launched a new website, a teaser to the upcoming mainnet launch: https://journey.mantle.xyz/
In addition, a governance proposal has been made to optimize the supply of $MNT in preparation for its launch. This proposal responds to concerns about the high fully diluted supply of $BIT and $MNT tokens. It suggests not converting 3 billion $BIT tokens held by the Mantle Treasury to $MNT and sending it to a burn address. This effectively reducing the fully diluted supply of $MNT at launch by 3 billion tokens, from approximately 9 billion to 6 billion.
Check out the full governance proposal here: https://forum.mantle.xyz/t/discussion-mnt-supply-optimization-in-preparation-for-launch/7148
What does this mean?
Those running the Mantle Network Testnet are required to convert $BIT to $MNT and with more hints being dropped towards the launch of its Mainnet, it is a good opportunity to start trying out the testnet. In addition, if the governance proposal is passed, it can be a long term bullish signal for $MNT.
EDX Markets goes live
The launch of EDX Markets is oddly timed along with the SEC lawsuits against Binance and Coinbase. It is also backed a large number of tradfi trading firms. Their founding investors including Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial. The platform has also recently completed a new financing round, welcoming strategic investors such as Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology. Some see this as tradfi's entrance into crypto trading.
They officially launched on 20th June and like every other exchange, it touts unique benefits like high liquidity and competitive quotes. They also have a non-custodial model that minimizes conflicts of interest.
The platform is dedicated to integrating the best practices from the traditional financial sector into the crypto market, with a strong emphasis on security. It offers a retail market listing, providing participants with the opportunity to secure better prices for retail orders.
Currently, EDX Markets supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). In the future, it plans to launch EDX Clearing, a clearing system designed to settle transactions made on EDX Markets, offering participants greater benefits in terms of price competitiveness and reduced settlement risks.
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