The ecological status and potential variables of "DeFi veteran" MakerDAO

Original Title: "The Current State and Potential Variables of MakerDAO's DeFi Ecosystem"

Original Author: Jake Pahor

Original Translation: Foresight News

MakerDAO is a revenue-generating machine that continues to print money and create wealth regardless of market conditions.

This article is the latest research report on MKR in October 2023.

Maker Protocol allows users to obtain loans by using their encrypted assets as collateral. Its operation is as follows:

Users deposit collateral (approved ERC tokens);

Cast stablecoin DAI according to the mortgage ratio;

DAI is currently the largest decentralized stablecoin pegged to the US dollar.

DAI use cases include:

Decentralized to ensure financial independence.

Users can generate currency autonomously;

Automatic Savings Rate (DSR);

Fast and low-cost transfer and remittance;

Stay stable in volatile markets;

Additionally, DAI can be used to pay for Gas fees in certain scenarios within the Ethereum ecosystem, improving the Web3 onboarding experience for new users.

Currently, the TVL of MakerDAO is 4.5 billion US dollars, which is the lowest level since January 2021, down 78% from the historical high set in December 2021.

Despite the worrying downward trend, MakerDAO still ranks fourth among all DeFi protocols (total TVL).

Within the past 30 days, MKR has generated $10.7 million in revenue. When annualized, this number reaches a staggering $130.7 million, ranking it seventh among all protocols.

MakerDAO's fees and revenue are mainly generated through the interest paid by borrowers on the platform.

MKR tokens have two main purposes:

Governance;

Capital restructuring resources;

除了治理作用之外，MKR can also be used for system capital restructuring.

That is to say, if the debt of the Maker system exceeds the surplus, the supply of MKR tokens may be expanded through debt auctions.

Therefore, this risk encourages MKR holders to self-adjust and responsibly manage the MakerDAO ecosystem to mitigate situations of excessive risk.

This also means that the supply of MKR may fluctuate based on debt capitalization.

These are the current supply statistics:

Circulating supply = 901,000 MKR;

Total supply = 977,000 MKR;

The maximum supply is 1 million MKR.

Market value = 1.27 billion US dollars;

Spark Protocol；

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