MakerDAO Increases DAI Savings Rate To 1%

Friday, December 2, 2022

Quick Take

  • MakerDAO increases DSR to 1%..
  • Trader Joe to deploy on Arbitrum.
  • Stripe releases a fiat-to-crypto on-ramp.
  • EF JavaScript Team depreciates Shandong testnet.

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DAI Savings Rate Increased To 1%

Maker Governance passed a proposal to increase the DAI Savings Rate (DSR) to 1%. The change marks a 99 basis point increase from the current rate of 0.01%. The DSR provides yield to users who deposit DAI into the savings contract. The yield paid to users is generated from the protocol’s stability fee for Collateral Debt Positions (CDP).

The DSR previously reached highs above 10% during DeFi summer but dropped to 0% in response to Black Thursday in 2020. The DSR has stayed relatively low since. The rate increase still needs to be included in an Executive Vote before being activated. Just over 1 million DAI is currently deposited in the DSR contract.

Trader Joe To Deploy On Arbitrum

Trader Joe, an Avalanche-native DEX, plans to deploy its protocol's Liquidity Book AMM and V1 onto Arbitrum One. Trader Joe’s Liquidity Book AMM provides efficient and slippage-free swaps. The protocol’s native $JOE token, lending market, staking, and Joepegs NFT marketplace are not included in the Arbitrum deployment.

Trader Joe is currently working on launching its AMM on the Arbitrum One testnet with a mainnet release set for Q1 2023. Arbitrum One is Offchain Lab’s Optimistic Rollup-based L2 network with over 400 deployed applications and $2.3 billion in TVL. Arbitrum holds over 50% of the market share in the L2 ecosystem.

Stripe Launches Fiat-To-Crypto On-Ramp

Payments processor Stripe launched a fiat-to-crypto on-ramp widget for developers. With just 10 lines of code, developers can embed the on-ramp directly into their web3 application. The widget allows end users to purchase cryptocurrencies with fiat and streamlines the process with auto-filled information using Link.

Link is Stripe’s one-click checkout tool that allows customers to save payment details for future purchases. Stripe handles KYC, payments, fraud, and compliance checks. Audius, Argent, and Magic Eden are among the projects to have already implemented the widget onto their dapp. The on-ramp is only available for U.S. customers.

EF JavaScript Team Depreciates Shandong

The EF JavaScript Team has decided to deprecate the Shandong Testnet. Shandong was the first Merge-only testnet, which activated five initial Shanghai-considered EIPs, and ran on a set of Lodestar and EthereumJS client boot nodes. ACD will instead work on a new multi-client that is completely Shanghai-aligned.

The EF DevOps team also released a withdrawals-focused testnet, which is still in alpha. Core developers are also working on launching a new EVM Object Format (EOF) testnet that will integrate EIP-4200, EIP-4750, and EIP-5450. There is also a running testnet for Sharding EIP-4844 called devnet-v3. The EF JavaScript Team also plans to start a dedicated Community Testnet effort.

Changing Ethereum Upgrade Names

Ethereum developer Tim Beiko published a proposal seeking to change the namespace for upgrades to Ethereum. Currently, execution layer upgrades are named after Devcon cities and consensus layer upgrades are named after stars. Beiko proposes using a single term to describe the upgrades at a high level with related terms describing the individual EL and CL specs. Ethereum’s recent upgrade, for example, used The Merge as an umbrella term to describe the individual Paris and Bellatrix upgrades.