DeFi ‘Farming Craze’ Pushes Stablecoin DAI to Raise Debt Ceiling to 345 Million


The Ongoing DeFi boom has the Maker community voting for increasing the debt ceilings for DAI.

“The farming craze has taken another turn with the start of YFI farming. Until long term solutions are put in place, the community may want to consider increasing the ETH and USDC-A debt ceilings,” reads the team’s statement.

This call for voting involves raising the debt ceiling of ETH-A by 40 million from 180 million to 220 million and a similar amount of increase in USDC-A to 80 million.

With 78% votes, of the 68 total votes cast by 37 voters, the community has given a go-ahead to raising ETH-A’s debt ceiling to the highest option.

USDC-A’s biggest rise in debt ceiling received 51% votes, out of the 56 votes by 37 voters.

With these changes, the global debt ceiling has been raised to 345 million.

Interestingly, from the 40 million increase in ETH, 13 million has already been minted. At this rate, Maker would have another vote to raise the debt cleaning very soon as one community member even said, “I think the ceiling should be as high as possible… unless we want to have another poll in 2 days.”

The USD-pegged stablecoin DAI is feeling the effects of the DeFi craze with an increase in its demand. As we reported, the stablecoin saw an increase of 40 million in its supply in less than a week.

Also, its supply APY on Compound is currently at 6.85%, down from yesterday's 7.47% but still much higher than USDT’s 3.70% and USDC’s 1.15%.

Binance has also listed DAI yesterday against four digital assets viz. BNB, BTC, BUSD, and USDT, the same as Maker.

The listing on the leasing spot cryptocurrency exchange saw the MKR and DAI balances on Binance quickly rising.

balance on binance

Source: Glassnode

The Ethereum-based stablecoin, which is a major part of the DeFi ecosystem, is currently seeing its price pushing to $1.04.

DAI-USD

Source: Messari

The latest hot DeFi token YFI by yEarn project, which uses Dai, is also contributing to the increased demand. yEarn also trades on Curve, which is also recording $200 million in volume per day, in part thanks to the stablecoin.

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