MakerDAO has initiated an Executive Vote to implement temporary fee adjustments on several fronts including Maker Vaults, SparkLend DAI Borrow Rate, the PSM, Dai Savings Rate (DSR), and the Governance Security Module (GSM) Pause Delay, as part of its strategy to reinforce the protocol amid increased market volatility and bullish sentiment.

The move aims to address the depletion of reserves for its stablecoin, Dai, which has seen a reduction in supply from $5 billion to $4.4 billion within a week.

This adjustment was proposed by BA Labs of the Maker’s Stability Advisory Council in response to the swift decrease in Dai supply.

The proposal further suggests a rapid approval process for utilising a portion of the $1.1 billion in Real-World Assets (RWA) within the protocol as a measure for stablecoin stability, should users opt for redemption.

Despite Dai being overcollateralised, the potential liquidity challenges that could arise from employing RWA as collateral are noted, especially if the selling pressure on Dai continues.