Users of MakerDAO, the organization behind DAI, will now be able to mint the stablecoin for free.
This was made possible after an executive vote increased the debt ceiling for its stETH vault to 200 million DAI.
- The higher debt ceiling is expected to minimize its dependency on support from centralized collateral assets. As such, the governance voted on the proposal that sought to reduce the fees for six vaults. The main idea was to promote DAI mints against decentralized collateral.
- Currently, MakerDao Governance has reduced the stability fee for the Wrapped stETH vault to 0%. This essentially means that users can now mint DAI for free rather than paying fees to Maker.
Announcing the same, MakerDAO tweeted,
“Free Dai minting? There is only one volatile-collateral vault type with a 0% Stability Fee — WSTETH-B. The latest Executive Vote raised its Debt Ceiling to 200 million Dai, and the Dai minted from this vault type is on its way to filling the available debt, again.”
- To mint against WstETH, users will have to maintain a minimum collateralization ratio of 185%.
- So far, 145.5 million DAI has already been minted against WstETH, with 55.5 million DAI available for minting.
- The vote comes after a push by MakerDAO Founder Rune Christensen, who aims to revise the protocol’s model and adapt to several challenges while minimizingDAI’ss reliance on USDC and real-world asset collateral over the coming years.
- USDC happens to beDAI’ss largest source of backing and comprises over a third of its $9.3 billion total value locked. Meaning that the centralized stablecoin represents more than a third of Maker’s TVL.