We support the proposal to integrate Maker’s DSR into the V3 Ethereum pool. This is key in preventing the outflow of DAI supply out of Aave in light of the recent DSR increase from 1% to 3.49%.
We have already observed users withdrawing DAI from Aave V3 Ethereum and depositing into Maker.
User 1 - rfv.eth | Address 0xb4fb31e7b1471a8e52dd1e962a281a732ead59c1 | Etherscan
User 2 - greenfund.eth | Address 0xa53a13a80d72a855481de5211e7654fabdfe3526 | Etherscan
To illustrate the impact of this integration, we demonstrate the projected supply rate for DAI on V3 Ethereum, while utilizing the DSR on idle supply.
Given the current borrow rate and utilization, the DSR integration would lead to a similar rate for DAI suppliers on Aave compared with depositing to DSR directly:
Aave projected supply rate (at the time of writing) = (3.49*0.21)+2.84 = 3.57%
- 2.84% is the current supply rate for 100% of the supplied funds
- With a utilization rate of ~79%, 21% of the supplied DAI is idle capital that could be supplied to DSR and generate a 3.49% yield.