MakerDAO Governance Call: Formalizing weekly governance proposals and mounting debt ceiling discussion

Quick Take

  • The MakerDAO governance poll to increase SF by another 4% to 11.5% was approved yesterday, as 50,844.75MKR was behind the proposal
  • In response to the approved proposal, Compound saw both its borrow and supply rates jump in lock-step yesterday. Borrow rates increased to over 14% (up from 11%) and supply rates now sit above 7.25% (up from 3.9%)
  • Looking at the historical borrow and supply rates, these kinds of jumps are unprecedented both from a magnitude as well as proactive timing
  • Considering this will be the 5th time this year SF have been raised with current supply edging closer to the 100m cap, there are mounting discussions over whether the debt ceiling should be raised, or even lowered

In what has become a trend, participation on weekly MakerDAO Governance & Risk calls continues to set all time highs, with this week registering 83 participants at its peak.

Looking ahead, what will be interesting to monitor is the ability for these calls to scale as more voices enter the fray.