(MENAFN- CoinXposure) MakerDAO, a prominent Decentralized Finance (DeFi) platform, introduced the Enhanced DAI Savings Rate (EDSR) to counteract the declining circulation of its stablecoin, DAI. The EDSR system intends to temporarily increase the user's effective dai savings rate (dsr) during the initial bootstrapping phase when DSR utilization is minimal.

The EDSR is determined based on the current DSR and the utilization rate of the DSR. Eventually, when utilization reaches a certain threshold, the EDSR will be eliminated and will have progressively increased over time.

To implement the EDSR, the makerdao community convened a governance vote in which 99.93% of the votes were in favor. This decision reflects significant support for the EDSR and confidence in MakerDAO's capacity to stabilize the DAI's circulation. To stimulate demand for DAI and stabilize its circulation, the MakerDAO Dai Savings Rate has been increased to 8%.

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MakerDAO has a total market capitalization of $4.6 billion and has taken decisive steps to increase dai demand. The DAI pool's total value locked (TVL) has now surpassed $400 million, according to recent reports that imply a whale conducted a significant transaction involving ETH and DAI.

By increasing the DSR to 8%, MakerDAO hopes to increase demand for DAI and sustain its circulation, thereby protecting the stablecoin's value and fostering its long-term growth.

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