MakerDAO lowers stability fees by dropping WBTC

The MakerDAO, the issuer of the stablecoin DAI, recently passed an important executive vote here. This resolution brings significant updates to the Maker protocol, covering various aspects such as Vault debt ceilings, stability fees, and even bug bounty payments. These approved changes will officially take effect on August 15, 2024, at 13:24 UTC. The reduction in the debt ceiling for WBTC also signifies the market's resistance to WBTC after TRON founder Justin Sun took over, during which various parties announced the issuance of WBTC in an attempt to capture market share.

WBTC Vault Debt Ceiling Reduced to Zero

One of the main outcomes of this vote was the adjustment of the debt ceiling for the WBTC Vault. The specific changes are as follows:

– WBTC-A, WBTC-B, and WBTC-C Vaults have been removed from the Debt Ceiling Instant Access Module (DC-IAM).
– The debt ceiling for these Vaults has been set to 0 DAI.

It is important to note that these changes will not impact the existing borrowing positions in the core WBTC Vault of the Maker Protocol or on the SparkLend platform.

Stability Fees (SF) Reduced for Multiple Assets

Maker governance has approved a reduction in the stability fees for various types of Vaults, reflecting a more favorable borrowing environment. The new stability fees are as follows:

ETH-A: Reduced to 6.25%
ETH-B: Reduced to 6.75%
ETH-C: Reduced to 6.00%
WSTETH-A: Reduced to 7.25%
WSTETH-B: Reduced to 7.00%
WBTC-A: Reduced to 7.75%
WBTC-B: Reduced to 8.25%
WBTC-C: Reduced to 7.50%

DAI Savings Rate (DSR) Reduced

In line with the reduction in stability fees, the DAI Savings Rate has also been adjusted, decreased to 6.00%.

Spark Proxy Spell: Enhancements and Market Adjustments

The approved changes have also impacted the Spark platform, specifically adjustments made for WBTC-related risks:
– WBTC borrowing functionality has been disabled.
– The Loan-to-Value (LTV) ratio for WBTC has been reduced to 0%, effectively restricting new borrowing activities.

Nevertheless, current WBTC positions and usage are temporarily unaffected. These updates represent MakerDAO's response to WBTC risks and underscore perspectives on DeFi risk mitigation.