The MakerDAO loan system, administered by the Maker Foundation, hit its debt ceiling Wednesday with roughly $100 million worth of the stablecoin DAI issued and more than $339 million worth of ethereum locked up as collateral.
On Thursday, the Maker Foundation proposed a new debt ceiling of 120 million DAI, which will now be voted on by holders of MKR governance tokens.
“MakerDAO has hit that limit and no more [DAI] can be generated until that debt limit is increased,” Maker Foundation president Steven Becker told CoinDesk.
This follows the previous raise in 2018, which doubled the DAI debt ceiling from 50 to 100 million stablecoins.
Despite the platform’s rapid growth, Becker said the nonprofit’s employees don’t have any statistics or insights into which demographics are taking out these cryptocurrency loans. Whoever they are, LoanScan tallied users conducting 35,919 transactions over the past month alone.
Back in July, the MakerDAO Foundation’s Joe Quintilian told CoinDesk he “wouldn’t be surprised” if the first $3 million loan was issued by 2020. As of November, there are at least five loans exceeding that amount, including two loans over $8 million each.
These loans don’t have fixed interest rates. Michael McDonald, creator of DAI analytics site mkr.tools, said in July that raising the debt ceiling might require a higher “stability fee,” the interest rate users must pay when they close out their DAI loans.
The stability fee fell from over 18 percent this summer to 5.5 percent today. The majority of the 35 voters who participated in a poll this week voted to raise the rate again to 9.5 percent. However, Thursday’s MakerDAO Foundation proposal to boost the debt ceiling to 120 million DAI also put a 5 percent stability fee back up for a vote.
Borrowers will have to pay whatever fee these voters decide on if they want to reclaim their collateral. Voter turnout remains low (just 1.97 percent of MK...