From division to unity: MakerDAO's brand reshaping after Dai deposit rate rises to 8%.

Original author: Co-founder of MakerDAO, Rune

Translated by: Jaleel, BlockBeats

According to the Spark Protocol page of MakerDAO's lending protocol, the DAI savings rate (DSR) has been increased to 8%. Other protocol changes include an increase in the maximum debt ceiling for the Spark Protocol direct deposit module from 20 million DAI to 200 million DAI, a decrease in the RWA004-A debt ceiling from 7 million DAI to 0 DAI, an update to the RWA002-A protocol, the allocation of 134.1 MKR to AVC members, an update to the DAI interest rate strategy, a decrease in the DAI market loan-to-value (LTV) ratio from 74% to 0.01%, a decrease in the DAI liquidation threshold from 76% to 0.01%, a decrease in the WETH market reserve ratio from 15% to 5%, and a decrease in WETH's variableRateSlope1 from 3.8% to 3%.

After the DAI Savings Rate (DSR) was raised to 8%, whales began to take action. According to monitoring, a certain whale sold 5,640 ETH on-chain yesterday in exchange for 10.32 million DAI (average selling price of $1,830), and mortgaged 5,400 wstETH to borrow 4 million DAI. Then, the whale deposited the 14.32 million DAI into MakerDAO to earn the current 8% APY. The current DAI pool TVL has exceeded $400 million.

Related reading: "How to participate in the investment opportunity of 8% annualized interest rate for DAI stablecoin?"

This article was written by Rune, co-founder of MakerDAO, on Twitter on August 7th. Rune introduced the upgrade of DAI and MKR to a unified brand, temporarily named NewStable (NST) and NewGovToken (NGT), as well as all key elements of the Maker Endgame. The following is the original translation by BlockBeats.

The current decentralized financial system is broken, and it's time to replace it with a system that benefits everyone. Maker Endgame achieves this through the power of DeFi and DAO: overcoming their weaknesses, doubling down on their strengths, and accelerating the growth of DeFi.

Most of us are still holding on here to experience the cryptocurrency winter, because we know that if blockchain technology can be meaningfully applied in the global financial system, it will unlock undeniable and incredible benefits for the world.

The key to a decentralized financial system is decentralization and transparency of its underlying governance infrastructure. The users of the system must also be the ones in control of it. This is where DAO comes in. DAO itself is a remarkable, transformative technology. In theory, it is a system that allows strangers to freely collaborate and benefit from each other on the internet, while making the world a better place.

However, the reality is not so simple. It has been proven that most people only care about their personal interests. Therefore, we encounter DAO coordination problems. In theory, this is a system that allows strangers to freely collaborate and benefit each other on the Internet, while making the world a better place.

Maker is the oldest DAO and controls the largest decentralized stablecoin. Our annual revenue is over $142 million and project expenses are over $44 million. At this scale, we have been struggling with coordination issues for years. But through Endgame, we have finally found some answers.

Alignment Engineering is a decentralized solution that ensures all participants in a DAO are aligned. The goal is to make collaboration an easy choice. Alignment Engineering is like a puzzle, where every part and process in the DAO must contribute to maintaining alignment.

Endgame is our attempt to achieve a utopian future of decentralized financial systems by completely transforming Maker governance and the Maker protocol. This is our final effort to achieve this goal. Endgame is the practical implementation of Alignment Engineering for the Maker ecosystem, and will develop the ecosystem in four main areas in the short term. Each will be gradually implemented over approximately one year.

Previously, the brands of Dai and Maker were separate, and so were their user groups. We hope to change this by introducing a new unified brand, creating more consistency between users and governance.

The most important thing is: DAI and MKR will continue to exist! Upgrading is a choice. The new unified brand will focus on making it as easy as possible for people to start using stablecoin products, DAOs, or both.

The temporary codes are: NewStable(NST) and NewGovToken(NGT). The revaluation of upgrading MKR to NGT is 1:12000. NST will be able to mine NGT tokens.

It's time to establish a sub-DAO

They are undoubtedly the biggest feature of Endgame, and their impact and advantages may change the entire industry.

The basic idea is that we hope to avoid a complex single DAO by separating advanced features and innovation into different SubDAOs. Regular NewStable (NST) holders can mine the tokens of these SubDAOs for free. These self-organized communities can then innovate, build, and distribute products on top of the core DAO, generating revenue. In doing so, they can benefit and develop the entire ecosystem. Let's take Spark DAO as a specific example.

We take Spark DAO as a specific example. SPK is one of the six initial SubDAO tokens, and NST can be mined soon. It already has a ready-made product: http://Sparkprotocol.io.

Each sub-DAO is unique, and which sub-DAO you mine depends on which community you want to participate in. Sub-DAOs only work when there are a large number of NGT voters participating in setting governance boundaries.

Lock-up holders vote for governance strategy

Locking has created two groups of NGT holders: regular holders and lock-up holders.

Ordinary holders do not care about governance. But lock-up holders have huge interests and demands. They must vote to help guide the direction. They also need to easily provide useful input to the system for voting in Endgame. Voting feels like an election, and lock-up holders only need to choose their favorite governance strategy once a year, and the strategy will be automatically executed.

Combining AI tools to assist in governance

In order to further align the ecosystem, we have used a comprehensive set of rules called Atlas. Atlas sets objective boundaries, rules, and best practices for sub-DAOs, lockers, and other participants. All of its valuable shared knowledge can be used for the entire ecosystem for free. The challenge of clearly formalizing all information related to effective DAO governance is that the Atlas dataset will be very large. We overcome this problem by providing free AI tools as an interface layer. Using Atlas is fast, user-friendly, and very powerful.

However, this does not mean that the core DAO or sub-DAOs will be "run" by AI. AI tools will only make it easy for even amateur participants to understand and interact with Atlas' knowledge and rules. This means that anyone can help check and constrain insiders.

Alignment Engineering's final and most important piece of the puzzle is the target system.

It is an immutable financial commitment to the public interest, ensuring that the ecosystem attracts good people who are in harmony with nature and can suppress dissonance. If you are interested in participating in making this vision a reality, please join our Discord. I will be giving a speech at the September Korean Blockchain Week to provide more detailed information and updates.

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