Hi HODLers, Gamers and Hiveans,

I am old enough to remember days when interest rates on Stablecoins were very attractive (>5%+) to traditional finance (1-2%).

 https://images.hive.blog/DQmfL96DSRtemcrs2H7ruWQF5p5LYcqQBh4JBxmDM3pYVbZ/image.png 
[Image Source](https://cdn.coingape.com/wp-content/uploads/2023/03/11194003/dai-11.png)

Lately, it has been the opposite, stablecoins interest rates have been quite depressed (under 2%) while the rates on your bank account savings and money market funds were reaching 5%+!

This is all about to change!

LThe community of Ethereum-based decentralized finance (DeFi) protocol MakerDAO will soon **vote on a proposal to increase its Dai (DAI) stablecoin’s savings rate (DSR) to 3.33%**. 

The DAI Savings Rate was previously increased to 1% in December 2022.

 https://images.hive.blog/DQmaKf2ySY8KoqoKXtTKR62Lk4jcSdko9LkZ5RVNCpRFPsu/image.png 


https://twitter.com/MakerDAO/status/1662161508716150785

>“It is a global parameter that needs to be adjusted often to deal with short-term changes in market conditions of the Dai economy,”

Other Stablecoins providers such as Aave and Compound were already providing Savings Rate around 2-2.5%.

This may seem like nothing but with the *safest* assets now yielding 3%,  more risky assets should also increase in yields as a consequence.

Overall, I am glad to see that Crypto projects are acknowledging that we are competing with traditional finance for capital and therefore, we need to remain attractive.

#### What are your thoughts about this?

Stay safe out there!

[Source](https://cointelegraph.com/news/makerdao-proposal-seeks-to-hike-dai-savings-rate-to-3-33)

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Posted Using [LeoFinance Alpha](https://leofinance.io/@vlemon/makerdao-is-also-voting-to-hike-its-dai-stablecoin-interest-rates)