MakerDAO’s revenue plummeted by 86% in Q3 2022 from $30 million in the previous quarter to just $4 million, according to a new report by blockchain research firm, Messari.
“Paired with inelastic expenses, Maker drew down some resources from the DAI surplus buffer to make payments in Q3 2022. It was the protocol’s first negative income quarter since at least 2020,” Messari stated.
DAI volumes of on-chain transfers on Ethereum increased again this quarter, jumping 149%, including increased activity on the decentralized exchange, Uniswap, and Messari predicts increased activity around the merge could indicate farming.
Only 2% of TVL on Maker is Bitcoin, its lowest since inception.
While #ETH was flat, wrapped BTC collateral fell 34%.
Only 2% of TVL on Maker is #Bitcoin, its lowest since inception. pic.twitter.com/2Gnavv6HDN
— BitKE (@BitcoinKE) October 24, 2022
At the same time, total value locked (TVL) dropped by 6% while DAI supply has remained at post-May 2022 levels.
The decentralized autonomous organization behind the DAI stablecoin is said to be seeking new resources including adding more real-world assets (RWA) into its mix.
In Q3 2022, the Maker community voted to add Huntingdon Valley Bank into its ecosystem bringing in $100 Million as another collateral option for borrowers on the protocol. The integration was covered on a Twitter thread below
The first collateral integration from a US-based bank in the DeFi ecosystem is getting closer.
The Maker Governance votes to add RWA-009, a 100 million DAI debt ceiling participation facility proposed by the Huntingdon Valley Bank, as a new collateral type in the Maker Protocol pic.twitter.com/fOdusdjCFS
— Maker (@MakerDAO) July 4, 2022
According to Messari, Maker’s real-world assets now make up 12% of the protocol revenue despite only representing 2% of the TVL with more RWAs targeted. The next three RWA integrations likely to launch are:
- Monetalis Clydesdale – To invest up to 500 million USDC. MakerDAO voted to allocate 80% of the vault to short-term U.S. Treasuries and 20% to investment-grade corporate bonds
- bIBTA (Backed Finance Short-Term Bond ETF) – To tokenize short-term bond ETFs (bIBTA), sell them to market participants in a regulated and compliant manner, and create a mechanism for Maker to invest in the tokens
- BlockTower Credit Vault – To act as an arranger for a RWA vault with a 150 million DAI debt ceiling to fund senior secured, real-world credit assets tokenized via Centrifuge Tinlake
Centralized stablecoins account for 61% of DAI’s collateral via the Peg Stability Module (PSM). The PSM enforces DAI’s 1:1 backing with USD at the cost of being a completely decentralized and censorship-resistant currency.
Looking at usage of stablecoins, following the collapse of Terra, $DAI is now third after $USDC and $USDT, as the stablecoin market appears to experience change. Over the last 2 quarters, $DAI increased it’s on-chain volume from 11% to 25%
On-chain volume share in Q2 2022 and Q3 2022 shows that $DAI has been taking shares from $USDT at a rapid pace.#MakerDAO pic.twitter.com/NmjAh26YPQ
— BitKE (@BitcoinKE) October 24, 2022
Going forward, Messari indicated that MakerDAO is more focused on growth as Founder, Rune Christensen, makes a comeback with 3 main fronts targetted:
- Long-term DAO structure
- Expanding $DAI to be multichain
- Increasing revenue streams
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About Maker
Maker is a peer-to-contract lending platform that enables overcollateralized loans by locking collateral in a smart contract and minting $DAI, a stablecoin pegged to the U.S. dollar.
MakerDAO determines which collateral types are accepted as well as their collateralization ratios and stability fees.
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