When creating an auction for an item with DAI, it would incentivize participants and create a user visible connection to DeFi by utulizing the Maker DSR for DAI bids for the duration of an auction.
For the period of an auction, the bids can be deposited into the DSR (DAI Savings Rate) to accumulate interest. The interest accumulated could then be distributed at the end of the auction among the top bidders, bidder, seller, or some combination to incentivize increased participation.
This would likely increase auction durations to increase the interest returned, so if distributed to bidders, sellers with longer auctions would be favored. New participants would have more time to enter auctions. This should also increase the overall volume of DAI usage which is a boost to the entire space.
The increased time and competition to win items could have interesting side effects to the value of items with similar or the same charcteristics as well.