The Maker Foundation on Thursday proposed a new debt ceiling of $120 million DAI for its loan issuing system after the current ceiling has been hit.
The platform already issued a loan of $100 million worth DAI stablecoin on Wednesday, which is the currently set debt ceiling. It is now holding over $339 million worth Ethereum as collateral against its loans.
The foundation also proposed a decrease in the stability fee by 0.5 percent.
“The Maker Foundation Interim Risk Team has placed an Executive Vote into the voting system, which will enable the community to vote for a new Dai Stability Fee of 5% and a new Debt Ceiling of 120 million Dai,” the official announcement stated.
“The Executive Vote will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.”
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This is not the first proposal to raise the debt ceiling of DAI as last year, its foundation doubled it from the original 50 million DAI token ceiling to 100 million.
A popular project in DeFi
MakerDAO has become one of the most sought decentralized finance (DeFi) startups. Though the platform issued a hefty amount of loan backed by cryptocurrency, it does not have the data of the key demographic interested in its services due to the decentralized nature of its services, Coindesk reported.
As the issued loans do not have a fixed interest rate, the raising ceiling for loans might require a higher stability fee as well, according to Michael McDonald, creator of DAI analytics site mkr.tools.
Originally, the stability fee for DAI was set at 18 percent but now dropped down to 5.5 percent. The organization now proposed to drag it down further to 5 percent.
Meanwhile, with the popularity of DeFi projects, Nasdaq in September listed an index tracking multiple DeFi projects, including MakerDAO.