MakerDAO's governance changes could have this impact on the protocol

Despite losing its dominance in terms of TVL to Lido, MakerDAO has continued to focus on its protocol and has continued to make changes to it. The protocol has been very active in terms of engaging with its community as well and has suggested new ways to improve its network through its governance.

Timeline of Maker

As a lending protocol with deep roots in decentralized governance, Maker (MKR) has launched a new Executive Voting campaign as it seeks to introduce new changes to the protocol. Taking to Twitter about 10 changes, the Maker community is being enjoined to delegate their governance tokens to approved delegates.

The Maker (MKR) cryptocurrency has seen a sharp decline of 25% in its value after experiencing an impressive 100% rally in March. This sudden drop in value could be attributed to a combination of technical and fundamental factors that are currently affecting the digital asset.

MakerDAO, the governance community of the popular DeFi lending platform Maker, has decided to keep using USD coin (USDC) as the primary reserve asset for the DAI stablecoin.  Although USDC experienced a temporary depeg earlier this month, an overwhelming majority of the MakerDAO have chosen to retain their faith in the world's second-largest stablecoin, dismissing any other viable options.

The Maker (MKR) token dropped 26% in value within a week following the news of an emergency proposal to address the DeFi protocol's $3.1 billion USDC exposure, raising concerns among investors and stakeholders.

While its DAI stablecoin regained its parity with the U.S. dollar last week, increased uncertainty as to whether a further de-pegging should be expected resulted in a decline in MakerDAO's [MKR] total value locked (TVL) in the last seven days.

The annualized fee income of leading decentralized finance protocol MakerDAO [MKR] has declined since the collapse of Silicon Valley Bank (SVIB) on 10 March, data from MakerBurn revealed.

MakerDAO passed a proposal to increase its US Treasury bond holdings by 150% to $1.25 billion. The move aims to diversify its liquid assets and boost revenue stream through a net annualized yield of 4.6% to 4.5%.

As the FUD around stablecoins gathers steam, many DeFi protocols have started to implement changes and proposals to their networks. MakerDAO, for instance, has deployed new parameters to mitigate the risk against the volatility of stablecoin markets.

MakerDAO is making moves aimed at protecting against exposure to risk associated with stablecoins. This is in response to USDC's recent de-pegging which reignited concerns about stablecoins under unfavorable market conditions.

Due to the decline in the prices of its underlying assets, the total supply of DAI, MakerDAO's decentralized stablecoin, has since dropped by 50% from its early 2022 peak, data from Delphi Digital revealed.