Dai stablecoin outstanding supply hits 100M 'debt ceiling'

The number of Dai ($DAI) outstanding has hit the hard-coded debt ceiling of 100 million (~$100 million). The jump in Dai outstanding coincided with a reduction in the stability fee from 9.5% to 5.5% last week hinting that deb-holders jumped to Maker ($MKR) to refinance outstanding loans from other platforms. A governance vote will be held on Friday that could increase the debt ceiling by $10 - $20 million.

Why it matters:

• Maker continues to be the dominant DeFi lending platform and interest continues to grow as the project moves closer to a Nov. 18 upgrade that will add collateral types beyond just Ethereum ($ETH).
• Maker’s stability fee has varied dramatically throughout the year hitting 20% over the summer before coming back down to where it is now. As the fee increased other DeFi platforms became more attractive and Maker saw an outflow of capital. Now the reverse is true as Maker is one of the lowest fee borrowing platforms.