MakerDAO, the popular decentralized blockchain forum, has recently proposed some governance changes ahead of Launch Season. In its official blog post, the company disclosed that the purpose of the respective changes is to get ready for the challenges that are approaching. It added that the MakerDAO community has been experiencing several issues throughout the recent 2 years after Endgame’s launch.
MakerDAO’s New Governance Changes Focus on Preparing for Its Launch Season
Keeping all these things, the company has been pursuing a suitable proposal for the implementation of the basic strategic approach. In this respect, the firm thinks that there is a requirement to start a unique phase. In this stage, the whole community would work in parallel to develop the conditions required for a remarkable and smooth launch.
While providing details, the platform pointed out the necessary changes. The 1st change deals with an increase in USDC reserves by modifying the algorithm. This modification would enable it to work for the allocation between treasuries and USDC. At present, the system aims at a twenty-two percent stablecoin exposure. However, the exposure will decrease to 18 percent before its rebalancing back to 20 percent.
The addition of the latest RWA treasury will only take place if the exposure goes beyond twenty percent. Hence, in situations of increased demand, the company will maintain the 30% stablecoin buffer. This will enhance the Dai stablecoin’s robustness as well as the liquidity for demand shocks. The 2nd change takes into account the activation of strategies for exposure to hedged perpetual yield.
It revealed that there is an opportunity to generate a comparatively lower yield with decreased risk under the centralized cryptocurrency exchanges. It is possible to utilize the respective yield without holding collateral on exchanges. The users can instead hold the collateral with professional custodians like Sygnum, Fireblocks, Copper, and RWA. This normally deals with Futures.
The Proposal Includes Strategies to Leverage the Current Bull Market
The use of perpetual usually results in misaligned pricing between the spot and perpetual asset. For this, the presently elevated yield would permit the protocol to expand a huge capital buffer. The third change intends to heighten the Smart Burn Engine’s rate along with making burn restricted with a certain price. Moreover, the bootstrapping proposal including the above-mentioned changes will witness its implementation via the GOV12.1.2 procedure.
