Research Summary
The report provides an in-depth analysis of MakerDAO, a decentralized finance (DeFi) protocol that allows users to obtain loans using their crypto assets as collateral. It discusses the protocol’s revenue generation, governance structure, treasury holdings, and competition. The report also highlights MakerDAO’s position in the DeFi market and its potential future developments.
Key Takeaways
MakerDAO’s Revenue Generation and Market Position
- Revenue Generation: In the past 30 days, MakerDAO has generated $10.7 million in revenue, which annualizes to $130.7 million. This revenue primarily comes from the interest paid by borrowers on the platform.
- Market Position: Despite a 78% decrease in Total Value Locked (TVL) from its all-time high in December 2021, MakerDAO still holds the fourth spot among all DeFi protocols in terms of total TVL.
MakerDAO’s Governance and Token Supply
- Governance: The MKR token serves two primary purposes – governance and recapitalization resource. MKR holders have the power to vote on changes to the Maker Protocol.
- Token Supply: The supply of MKR may fluctuate based on debt capitalization. The current circulating supply is 901k, with a total supply of 977k and a maximum supply of 1 million.
MakerDAO’s Treasury Holdings
- Treasury Holdings: The MakerDAO Treasury holds $49.61 million in stablecoins, $0.8 million in BTC/ETH, and $122.38 million in their own token (MKR), totaling $172.39 million. This places them in the 11th position according to DefiLlama.
MakerDAO’s History and Funding
- History: Launched in 2014 on the Ethereum blockchain, MakerDAO has become one of the largest DeFi applications. It was co-founded by Rune Christensen and Nikolai Mushegian.
- Funding: MakerDAO has raised around $54.5 million over multiple secondary token sales, funded by Andreessen Horowitz, Polychain Capital, a16z Crypto, Paradigm, and Dragonfly Capital.
MakerDAO’s Competition and Future Prospects
- Competition: MakerDAO faces competition from emerging protocols like Liquity and Lybra Finance, and other established DeFi players like Curve and AAVE.
- Future Prospects: The report is bullish on MakerDAO and the DAI ecosystem, citing upcoming developments such as the launch of Sub DAOs, Spark Protocol, RWA narrative, 5% APY on DSR, token split, and rebranding.
Actionable Insights
- Monitor MakerDAO’s Revenue Generation: Given its impressive revenue generation, it would be prudent to keep an eye on MakerDAO’s financial performance and its impact on the MKR token’s value.
- Understand the Role of MKR Token: The MKR token plays a crucial role in the governance and recapitalization of the MakerDAO ecosystem. Understanding its dynamics could provide insights into the protocol’s stability and future direction.
- Assess Treasury Holdings: MakerDAO’s treasury holdings, particularly its own MKR tokens, could influence its financial stability and resilience in volatile market conditions.
- Consider MakerDAO’s Market Position: Despite a decrease in TVL, MakerDAO’s strong market position in the DeFi space could present opportunities for growth and expansion.
- Investigate Future Developments: Upcoming developments such as the launch of Sub DAOs and Spark Protocol could potentially enhance MakerDAO’s offerings and impact its market position.
