Crypto Beginner

MakerDAO proposes far-reaching changes to DAI

MakerDAO and DAI

DeFi ecosystem Maker has formally announced a new executive proposal, urging MakerDAO members to vote on some key decisions. In a decentralized realm, every decision is passed or rejected based on the number of governance votes.

The key proposal concerns the launch of teleport technology that seeks to increase the compatibility of the network’s DAI stablecoin across platforms, a development closely watched by traders and whales alike.

What are the decisions?

The first voting concerns the release of the final tranche ($25 million in DAI) of the $100 million loan being advanced to Philadelphia-based community bank HVbank, which was first announced by MakerDAO on 23 August 2022.

The second decision being voted is about the launch of the much-awaited teleport technology. If approved, the technology will allow users to withdraw DAI (MakerDAO’s stablecoin) directly from layer-2 platforms such as Optimism and Arbitrum to layer-1 platforms, including Ethereum.

Here is what MakerDAO tweeted:

However, it is to be noted that the executive proposal (followed by the governance vote) only concerns the technical launch of withdrawals. Arbitrum and Optimism integration will follow and will need additional voting sprints.

What do these decisions mean for the investors?

While the partnership with the bank was ‘priced in’ a week back, teleport technology has grabbed the attention of whales. Transactions on the Maker network have been surging off-late with a $100,000+ hourly level touched yesterday (1 September 2022), according to Santiment.

This figure is the highest since 11 August 2022 and shows a growth in the overall whale activity across the network. Wallet addresses have also been rising steadily over the past few weeks, followed by trading volume.

The executive proposal comes in the wake of a deliberate DAI-USD depegging, where Rune, co-founder of MakerDAO, proposed a collateral shift from the centralized USDC to the ever-reliable Ether.

Article Default Disclaimer

Share this:


Subscribe to our newsletter

Weekly crypto updates and insights delivered to your inbox.

Browse our Newsletter Archive for past editions.


Thank you for subscribing!
Please verify your email to start receiving the latest issues from Switch in your Inbox.
Powered by

Build your crypto portfolio on the
CoinSwitch app today

Scan the QR code below or find us on Google Play
Store or Apple App Store.

Build your crypto portfolio on the
CoinSwitch app today

Scan the QR code below or find us on Google Play Store or Apple App Store.

2 Crore+ users trust CoinSwitch, India's safest crypto platform | 170+ Coins | ISO 27001 Certified | FIU Compliant