TL;DR
- Sky Protocol, formerly MakerDAO, reported a record-breaking $22.18 million in revenue for December 2024, reflecting the DeFi sector’s recovery.
- Factors driving this growth include increased usage of the native stablecoin DAI/USDS, with daily fees peaking at $1.3 million and DAI supply rising to $6.2 billion.
- Sky Protocol’s rebranding and collateral overhaul, along with ambitious expansion plans for 2025, include greater adoption of USDS and services on the Solana blockchain.
Sky Protocol, formerly known as MakerDAO, has reported a record-breaking $22.18 million in revenue for December 2024. This achievement marks the highest monthly earnings for the DeFi lending protocol in the past six months. The impressive performance reflects the overall recovery of the DeFi sector and Sky Protocol’s strategic initiatives to enhance its platform and services.
Factors Driving Revenue Growth
Several factors contributed to Sky Protocol’s remarkable December revenue. The protocol’s daily fees peaked at $1.3 million on December 7, driven by increased usage of its native stablecoin, DAI/USDS.
The supply of DAI rose to $6.2 billion, the highest level since 2022, supported by a diverse mix of collaterals, including tokenized T-bills. This diversification has positioned Sky Protocol as a leader in the adoption of real-world assets (RWAs) within the crypto sector.
Strategic Shifts and Rebranding
Over the past year, Sky Protocol underwent significant changes, including a rebranding from MakerDAO and an overhaul of its collateral structure. These strategic shifts have enabled the protocol to adapt to evolving market conditions and maintain its competitive edge.
Despite facing competition from other DeFi lending platforms like Aave, Sky Protocol has managed to secure a strong position in the market, with a treasury holding of $2.1 billion as additional security for the dollar peg of DAI/USDS.
Expansion Plans for 2025
Looking ahead to 2025, Sky Protocol has ambitious plans to expand its presence in the DeFi space. The protocol aims to push for greater adoption of USDS, its native stablecoin, and expand its services to the Solana blockchain.
In just a week after launching USDS on Solana, the supply of USDS on the chain surpassed 100 million tokens. Sky Protocol plans to offer full lending services on Solana, potentially competing with established lenders like Kamino Finance.
Sky Protocol’s record December revenue and strategic growth plans for 2025 highlight its resilience and adaptability in the rapidly evolving DeFi landscape. As the protocol continues to innovate and expand, it is well-positioned to capitalize on emerging opportunities and drive further growth in the DeFi sector.
