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8% savings rate lowered, Justin Sun withdraws funds from MakerDAO, earns 100 ETH in nine days

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8% savings rate lowered, Justin Sun withdraws funds from MakerDAO, earns 100 ETH in nine days

MakerDAO's DAI savings rate, DSR, has been adjusted from 0.01% at the end of last year to 8%. Although the 8% rate was shortly reduced to 5% after its official launch, it still attracted a lot of attention from the crypto community. Following the rate reduction, many large whale accounts have been exiting, including TRON founder Justin Sun, who had deposited over $200 million.

Justin Sun Earns 100 ETH in Nine Days

Justin Sun invested 136 million DAI on the first day of the 8% launch and subsequently increased it to over 200 million USD.

Recap: MakerDAO's "8%" DAI Savings Rate is Lucrative! Justin Sun Deposits stETH and Earns Over 100 Million USD in DAI

Blockchain analyst Yujin pointed out that Justin Sun withdrew 206 million DAI from the DSR fund pool on the evening of August 20 and redeemed the initially pledged 235,556 wstETH.

He mentioned that Justin Sun's earnings during the 9-day deposit period amounted to 257,000 DAI, all of which were exchanged for 154 ETH.

MakerDAO Lowers Savings Rate, Founder: Experiment Successful

Prior reports have provided detailed analysis on MakerDAO's decision to lower the savings rate:

  • MakerDAO Proposes Lowering Interest Rates to 5%, What Impact Does it Have on Earnings?

MakerDAO founder Rune Christensen believes that the experiment of raising interest rates was successful, citing the following observations:

  • DAI supply increased by 5 billion USD within two days

  • Interest rates higher than borrowing costs lead to "arbitrage borrowing" in the market

  • Raising the savings rate will quickly attract large-scale capital inflows, consume excess profits, and achieve market equilibrium

Rune also proposed some improvements to ensure that raising the savings rate benefits general Dai holders rather than just benefiting ETH whales.