Interest Rate Strategy
Summary
MakerDAO implements a new interest rate strategy for the Aave v3 fork Spark Lend that sets the interest rate for the Spark Lend DAI market to the base DAI savings rate. In comparison to the old version, the contract retrieves the base rate from the “ETH-C” ilk (collateral type) of the Maker contract Jug instead of the DSR rate from the Maker contract Pot. — “The Maker Protocol, also known as the Multi-Collateral Dai (MCD) system, allows users to generate Dai by leveraging collateral assets approved by “Maker Governance.” Maker Governance is the community organized and operated process of managing the various aspects of the Maker Protocol. Dai is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. Resistant to hyperinflation due to its low volatility, Dai offers economic freedom and opportunity to anyone, anywhere.
