1. MakerDAO has proposed a new measure to increase the maximum debt ceiling of its Compound V2 D3M by 300% and set the Target Available Debt to 5 million DAI.
2. The DAI Direct Deposit Module (D3M) was deployed on Compound Finance in December 2022 with a DAI supply of 5 million DAI and a maximum debt ceiling of 5 million DAI.
3. The proposed Executive Vote seeks to raise the Compound D3M Debt Ceiling from 5 million DAI to 20 million DAI.
Decentralized finance platform MakerDAO recently proposed a measure to increase the maximum debt ceiling of its Compound V2 D3M from 5 million DAI to 20 million DAI. This proposal seeks to raise the Target Available Debt on the same vault to 5 million DAI.
In December 2022, MakerDAO deployed its DAI Direct Deposit Module (D3M) on Compound Finance with a DAI supply of 5 million DAI. The maximum debt ceiling was also set at 5 million DAI. This module enables the creation and deposit of DAI into other lending protocols on the Ethereum blockchain in exchange for a deposit/collateral token from those protocols.
The new Executive Vote proposed by MakerDAO would increase the maximum debt ceiling of its Compound V2 D3M by 300%, allowing for a maximum of 20 million DAI to be generated as DAI on the platform. The proposed measure also seeks to raise the Target Available Debt on the same vault to 5 million DAI. This would enable MakerDAO to distribute newly minted DAI through other lending protocols while maintaining a full backing of DAI.
The measure is currently awaiting community approval and MakerDAO is confident that it will be approved. If enacted, the new measure would provide MakerDAO with a much needed boost in buying pressure, as well as the ability to distribute freshly minted DAI through other lending protocols. This would ensure the stability of the platform and provide MakerDAO with the necessary tools to expand its reach in the decentralized finance space.