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    Stability Fee (May 13)

    Q4. How impactful is the stability fee (the interest rate) on DAI loans in terms of the impact on volume and dollar amount of loans taken out? How does activity with DAI tokens change when the stability fee is different?

    what is stability fee?

    Stability Fees are a Risk Parameter designed to address the inherent risk in generating Dai against collateral in Maker Vaults.

    A portion of the Stability Fee is diverted toward sustaining the operation of the Maker Protocol, which includes the DSR, Risk Teams, and other costs associated with maintaining the protocol.

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