The Maker community is about to commence a vote on whether to increase the DAI savings rate (DSR) to 3.3% from the existing level of 1%.

Block Analitica, a DeFi risk management firm, proposed a set of parameter changes on Maker, including increasing the DSR. The change would offer holders of the stablecoin a higher yield, and potentially attract more yield farmers that could help stabilize its price.

“The Dai Savings Rate (DSR) is a fundamental component within the Maker Protocol system, offering users the opportunity to deposit DAI and receive a consistent interest rate. This interest is accrued in real-time, accumulating from the system’s revenues,” stated the Maker team on Twitter.

Given the role that DAI plays within the DeFi ecosystem, the implications of this parameter change could be far-reaching. According to Primoz Kordez, founder of Block Analitica, the increase in DAI DSR is equivalent to a rate hike across the board.

The fact that idle DAI deposits can now be put into the DSR will likely increase supplier yield and reduce the borrow/lend spread on lending protocols. As more capital flows into the DSR, there will be fewer stablecoins available to borrow overall – something that would stand to increase stablecoin rates.

“Gonna be seeing a lot more of this from different angles in the coming weeks – these base rates (and the degree to which they are risk free) are arguably the single most important driver of defi interest,” wrote Twitter user “@jack-anorak.”

Until a November proposal was executed successfully, the DAI DSR stood at just 0.01%. The rate change was proposed as a way for Maker to increase overall protocol revenue, despite increasing its cost of capital.