According to the latest analysis by Messari, MakerDAO has passed a considerable growth milestone by generating $63M+ in the past year.
The earnings come from various sources. One of the biggest causes of growth for MakerDAO has been the DAI stablecoin that experienced 46x growth in terms of total supply in the last 12 months. We can now consider MakerDAO and its stablecoin, the most successful decentralized stablecoin in the market. The MKR token has benefited from the growth, too.
Showing the Potentials of Decentralized Stablecoins
MakerDAO is one of the most impactful actors in the DeFi industry. The protocol suggested a decentralized model for stablecoins and introduced DAI. This stablecoin has experienced considerable growth in the past year. We can expect it to grow more as more users are migrating from traditional stablecoins to decentralized ones. The latest report by Messari shows that DAI has grown its total supply by 46x in the past year. This supply has resulted in more than $63M of earnings for MakerDAO.
The team behind the Maker protocol and DAI stablecoin have various ways of earning from their products. One of them is the interest revenues from overcollateralized loans. Besides, there is a price stability module in this protocol that results in revenue for MakerDAO from stablecoin trading fees. Another source of revenue comes from fees that are charged on liquidated vaults.
As mentioned above, the growth of MakerDAO has resulted in growth for the MKR token, too. It’s the governance token of MakerDAO with numerous use-cases. One of them is the ability to vote in changes to the protocol. Besides, MKR is used when liquidations would not fully cover outstanding DAI. the protocol mints and auctions MKR to compensate.
MakerDAO and its community aren’t limited and stopped by recent growths. They always look for more in the protocol and want to make it the first choice in terms of decentralized stablecoins. There are some important milestones in the roadmap of MakerDAO and DAI in the coming months. One of them is implementing the flash mint module.
The new module makes it possible for users to mint DAI tokens with the simplest conditions for loans. The final result will be easier steps for benefiting from arbitrage opportunities in the DeFi space. Another milestone in MakerDAO’s roadmap is introducing Maker Direct Deposit DAI Module or D3M in cooperating with Aave. The new module makes it possible to mint DAI on Aave.