OKX has integrated the DAI Savings Rate (DSR), a feature powered by the MakerDAO protocol, into its On-chain Earn product suite. This integration provides users with a straightforward method to earn daily interest on their DAI holdings directly through the OKX platform.
What is the DAI Savings Rate (DSR)?
The DAI Savings Rate (DSR) is a smart contract mechanism that enables users to stake their DAI stablecoins and automatically earn interest. A key advantage is that users retain complete and independent control over their staked assets at all times. The interest generated is derived from the profits MakerDAO earns through its various operations.
This offering is part of OKX's On-chain Earn feature, which focuses on providing direct access to decentralized finance (DeFi) opportunities.
Key Features of DSR on OKX
- Flexible Staking: You can start staking with a minimum of just 1 DAI.
- Daily Earnings: Interest accrues on a daily basis.
- Instant Redemption: You can redeem your staked DAI and earned interest at any time without facing lock-up periods.
- Gas Fees Covered: OKX covers the network gas fees for both staking and redemption transactions.
- Transparent Rates: The Estimated Annual Percentage Rate (APR) is approximately 5%, though it is important to note that this rate adjusts automatically based on the prevailing conditions set by the MakerDAO protocol.
How Interest is Calculated and Distributed
Interest generation begins immediately after OKX transfers your staked DAI to the DSR contract. Your accrued interest is distributed directly to your OKX Funding account at the moment you choose to redeem your staked assets. This streamlined process ensures you receive your earnings seamlessly upon withdrawal.
Understanding MakerDAO's Role
MakerDAO is a foundational decentralized autonomous organization (DAO) and protocol operating on the Ethereum blockchain. It is best known for creating and managing the DAI stablecoin, which is soft-pegged to the US dollar and backed by over-collateralized crypto assets.
The protocol generates revenue primarily through stability fees from loans and interest earned on its treasury of real-world assets (RWA), such as U.S. Treasuries. A portion of these profits is then shared directly with the DAI community through the DSR mechanism, rewarding those who choose to stake and hold their DAI.
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How to Stake DAI on OKX
Getting started with staking your DAI to earn via the DSR is a simple process on both the OKX website and mobile application.
On the OKX Website:
- Navigate to the top menu and select 'Grow'.
- Click on 'Earn' and then choose 'On-chain Earn'.
- Use the search function to find 'DAI'.
- Select the DAI asset and click 'Subscribe' to begin.
On the OKX Mobile App:
- Tap on the 'Grow' tab at the bottom of the screen.
- Select 'Earn' and then choose 'On-chain Earn'.
- Search for 'DAI' in the provided search bar.
- Select the DAI asset and tap 'Subscribe' to initiate staking.
Frequently Asked Questions
What is the minimum amount of DAI I need to stake?
You can start earning with the DAI Savings Rate on OKX with a minimum staking amount of just 1 DAI, making it highly accessible.
Can I withdraw my staked DAI at any time?
Yes, one of the core features of this product is its flexibility. There are no locking periods, allowing for instant redemption of your staked DAI and accrued interest at any moment.
How is the APR for the DSR determined?
The Estimated APR is not fixed by OKX. It is automatically adjusted by the MakerDAO protocol based on its operational profitability, which is influenced by factors like stability fee revenue and returns from its real-world asset holdings.
Where does the interest I earn come from?
The returns are generated by the MakerDAO protocol's DSR product itself. The interest is funded from the protocol's earnings, which include fees from its lending activities and yield from its diversified treasury.
Are there any risks involved with staking in the DSR?
While OKX facilitates access and covers gas fees, it is important to understand that the returns are dependent on the MakerDAO protocol. OKX's responsibility is limited to the distribution of returns and project launch; it does not assume liability for potential risks such as smart contract bugs, protocol insolvency, hacking incidents, or project fraud that could lead to asset loss.
How do I start earning with DAI on OKX?
Simply navigate to the 'On-chain Earn' section within the 'Grow' tab on either the OKX web platform or mobile app, search for DAI, and click subscribe. Your staking and earning process will begin immediately.