Cryptocurrency exchange OKEx is set to become the first major platform to integrate Dai Savings Rate (DSR), allowing holders of the stablecoin to earn a 4% return.
MakerDAO, a decentralized autonomous organization behind the Dai stablecoin ecosystem, announced the news Tuesday, saying that OKEx will integrate the DSR on Dec. 23 for its “millions” of users.
Once integrated, OKEx users will be able to directly deposit Dai and stake it in the DSR to earn the savings rate of 4%, as well as an additional reward from the exchange. It is not clear how much is the additional reward. The Block has reached out to OKEx and will update this story if we hear back.
There are no minimum or maximum deposits required to get started with the DSR and there are also no fees, said MakerDAO, adding: “With the OKEx integration, adoption of the Dai Savings Rate can accelerate in Asia, introducing millions more people to Dai.”
MakerDAO activated the DSR last month after MKR token stakeholders made an executive vote. In Tuesday’s announcement, MakerDAO said users around the world have locked over 16 million Dai in the DSR contract in the three weeks since its launch.
MakerDao is a decentralized lending facility built on the Ethereum blockchain. The Maker platform leverages Ethereum smart contracts to automate the functions of a lending platform, as well as its associated stable coin in a decentralized manner. Users of the platform can post collateral (Ether) and receive the platform’s native stablecoin, Dai, which is designed to mirror the value of the US Dollar.
The Maker token (MKR) is a governance token that derives its value from its role in governance in the MakerDao platform as well as interest payments, called stability fees, which are paid by borrowers that create Dai.
MKR holders can vote on proposals submitted by any Ethereum account interested in submitting a proposal to the MakerDao system. Proposals are smart contracts submitted to the Maker platform which seek to modify the internal governance and operational variables of the Maker Platform. MKR voters evaluate these proposals on an ongoing basis. The proposal or smart contract with the highest amount of approval votes is elected as the “Active Proposal” in the MakerDAO system. This specific smart contract or “Active Proposal” can only be approved by MKR voters/holders to modify some part of the MakerDao platform.
On April 11, 2018 the company announced its expansion to Malta, given the country’s efforts to provide a sound regulatory framework for blockchain businesses and digital asset exchanges. In May 2018, the exchange became the world’s largest cryptocurrency exchange by reported turnover.
On July 30, 2018 a trader reportedly bought bitcoin futures with a $416 million notional value on margin, before being forced by the exchange to liquidate his position at a large loss. The exchange injected 2,500 Bitcoins – worth about $18 million at current prices – into an insurance fund to help minimize the impact on clients. However, to cover for the outstanding amount, traders who had made an unrealized profit during the previous week still had to pay a clawback rate of 17 percent, a so-called “socialized clawback”