MakerDAO, one of the largest decentralized lending protocols, has recently greenlit a proposal to temporarily raise the interest rate for stablecoin Dai (DAI) holders.

The MakerDAO Community approved measure, named Enhanced Dai Savings Rate (EDSR), on July 27. It aims to bolster DAI yields by up to 8%.

This move is intended to drive higher adoption of DAI, which currently holds the third position among stablecoins, trailing behind Tether (USDT) and USD Coin (USDC).

DAI's market capitalization has recorded a significant decline from its $8.6 billion valuation in 2022 to the current $4.5 billion.