MakerDAO Now Offering Savings Yields Higher Than Wall Street

The decision to hike savings rates will likely make DAI a more attractive asset for risk-averse investors




Decentralized financial services giant MakerDAO is hiking the savings yield for its stablecoin DAI from 0.01% to 1% after the latest governance vote.

All DAI holders are able to deposit their stabletokens into a Dai Savings Rate contract for a 1% annual yield — equivalent to an APY percentage. 

An increased savings rate will enable DAI to be more competitive than retail TradFi offerings.

Sam MacPherson, a protocol engineer at MakerDAO, tweeted, “In my view Maker should take strong action to halt the capital outflows from DeFi.”

The overall value of all assets locked across DeFi protocols is down 75% this year, shrinking from $166.7 billion to $42.41 billion, with MakerDAO making up about 16% of that total.

“This is ultimately good for the DeFi ecosystem as we will be able to keep the economic energy within DeFi,” he added.

Loading Tweet..

MakerDAO’s DAI savings interest rate is now higher than a handful of traditional US banks including Wells Fargo, which has a standard interest rate of 0.15% for its ​​Way2Save savings accounts and 0.25% for money market accounts.

TD Bank’s Simple Savings rate sits at 0.02%, while Chase Savings’ annual interest rate sits at 0.01%.

MakerDAO’s new DAI rate is still lower than 1-Year US Treasury yields, which currently sit at 4.64%. CapitalOne also offers 3% APY on certain savings accounts.

In any case, appetite for crypto borrowing has not been high since the downfall of centralized finance lenders such as Celsius and BlockFi, leading to low DeFi yields across the board.

“The DSR is the base rate of DeFi — it sets the lower bound for yields. Due to Maker’s size, increasing the DSR is akin to a rising tide that lifts all boats,” MacPherson told Blockworks.

“Aave, Compound and other money markets will be able to incorporate this yield into their protocols and pay users more for lending their Dai. This will slow down / halt capital searching for better returns at a bank and leaving the DeFi ecosystem,” he said.

MakerDAO’s latest decision to hike savings rates will likely make DAI a more attractive asset for risk-averse investors — especially those keen to look outside Wall Street for their savings interest.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495B in value locked, doubling Uniswap's Base deployment.


The former Valkyrie CEO chats with Blockworks about what she has her eye on as Cypherpunk Holdings’ new leader


Thursday’s CPI report shows prices are coming down more quickly than analysts had anticipated, renewing hope that central bankers will cut rates in the fall


If we tokenize all assets in a speculative rush, the risk of creating illiquid markets and trapped value will manifest on a large scale


Plus, Trump is headed to the heart of Bitcoinlandia with a speaking appearance at the Bitcoin 2024 conference


Meanwhile, stocks rally after Jerome Powell finishes his Capitol Hill tour


Plus, Blinks have reshaped many people’s understanding of what blockchains are capable of