Participants on this week’s call exuded a palpable sense of relief as, after months of turbulence, Dai finally rallied beyond its target peg. Yet while this achievement warrants some short-term celebration, MakerDAO stakeholders would be remiss to consider their job done: as the crypto markets continue to trend upwards Dai will likely see sustained sell pressure. Further, the scenario where Dai consistently trades above $1 comes with significant challenges of its own, with the system’s design ultimately preventing the risk-free arbitrage that is necessary to match supply to excess demand.

Governance

MakerDAO’s governance process witnessed some significant shenanigans this week after one, supposedly drunk, MKR holder staked somewhere on the order of 17,000 tokens, valued at over $10 million, towards increasing the Stability Fee by an additional 4%.

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