1/ MakerDAO just announced Spark Protocol: a competitor to Aave.
It's a sharp turn from Maker's old benign strategy of integrating $DAI into existing #DeFi protocols. Now Maker wants to build its own DeFi ecosystem.
Old Maker is dead. Long live the new Maker: π§΅
It's a sharp turn from Maker's old benign strategy of integrating $DAI into existing #DeFi protocols. Now Maker wants to build its own DeFi ecosystem.
Old Maker is dead. Long live the new Maker: π§΅
2/ Maker's strategy has been focused on integrating $DAI into leading #DeFi protocols.
For example, Maker recently enabled Dai Savings Rate (DSR) with a 1% APY yield.
The expectation was that Aave or Compound would integrate DSR and USDC holders would move to DAI.
For example, Maker recently enabled Dai Savings Rate (DSR) with a 1% APY yield.
The expectation was that Aave or Compound would integrate DSR and USDC holders would move to DAI.
3/ That hasn't happened.
Instead, Maker is forking Aave v3 with DSR integration and EtherDAI (more on that later) at the center.
Sure, Aave gets 10% of the revenue, but the message is clear: Thanks boys, we are going to do it ourselves now.
Instead, Maker is forking Aave v3 with DSR integration and EtherDAI (more on that later) at the center.
Sure, Aave gets 10% of the revenue, but the message is clear: Thanks boys, we are going to do it ourselves now.
4/ It's no surprise when you think about it.
Aave is about to launch its own DeFi stablecoin $GHOβa clear competitor to $DAI.
Curve is also launching a stablecoin crvUSD, and Curve is crucial for DAI's liquidity on-chain.
Aave is about to launch its own DeFi stablecoin $GHOβa clear competitor to $DAI.
Curve is also launching a stablecoin crvUSD, and Curve is crucial for DAI's liquidity on-chain.
5/ Compound launched the v3 with only USDC supported for borrowing, while other crypto assets are supplied as collateral.
I think this new model is a threat to DAI.
Compound could have supported DAI, benefiting both protocols, but they haven't. Yet.
I think this new model is a threat to DAI.
Compound could have supported DAI, benefiting both protocols, but they haven't. Yet.
6/ What's more, Maker is soon launching EtherDAI.
Similarly to Frax's frxETH, EtherDAI is a synthetic liquid staking derivative (LSD) for ETH.
It's a core part of Maker's Endgame plan to make DAI the Unbiased World Currency.
Similarly to Frax's frxETH, EtherDAI is a synthetic liquid staking derivative (LSD) for ETH.
It's a core part of Maker's Endgame plan to make DAI the Unbiased World Currency.
7/ EtherDAI will depend on Lido at launch as Maker is not set up to run staking infrastructure themselves, for now.
But that could change in the future.
"This will help us capture market share in the rapidly growing Liquid Staking Derivatives (LSD) market."
But that could change in the future.
"This will help us capture market share in the rapidly growing Liquid Staking Derivatives (LSD) market."
8/ That's not all.
Maker's Spark Protocol will support two oracles: Chronicle 3 (prev. Maker Oracles) and Chainlink π
It's an extra security step in case on oracle failsπ
Maker's Spark Protocol will support two oracles: Chronicle 3 (prev. Maker Oracles) and Chainlink π
It's an extra security step in case on oracle failsπ
9/ Spark Protocol will have its own token, but it will be wholly owned by Maker's $MKR
This is a confusing part, so bear with me:
Maker's Endgame Plan envisions creating MetaDAOs (or SubDAOs) to reduce the complexity of how Maker is governed.
This is a confusing part, so bear with me:
Maker's Endgame Plan envisions creating MetaDAOs (or SubDAOs) to reduce the complexity of how Maker is governed.
10/ You can think of Maker Core as L1 Ethereum: slow and expensive, but secure.
While MetaDAOs are L2 solutions: fast & nimble, that get security from the L1.
Spark Protocol will be the fast & nimble part of Maker.
While MetaDAOs are L2 solutions: fast & nimble, that get security from the L1.
Spark Protocol will be the fast & nimble part of Maker.
11/ Each MetaDAO has a specific task at hand.
Spark Protocol will serve as the backbone lending protocol for all current and future Maker's services, like DAI or EtherDAI.
It's like Google's Alphabet: Maker Core is Google, and MetaDAOs are the βAlpha Betsβ.
Spark Protocol will serve as the backbone lending protocol for all current and future Maker's services, like DAI or EtherDAI.
It's like Google's Alphabet: Maker Core is Google, and MetaDAOs are the βAlpha Betsβ.
12/ Each MetaDAO will have a token launched via yield farming - this is how we'll get Spark Protocol token.
No pre-allocation or private/public sales. A real feast for yield farming thirsty degens π
SPOILER ALERT: Youβll need MKR to farm every single SubDAO token.
No pre-allocation or private/public sales. A real feast for yield farming thirsty degens π
SPOILER ALERT: Youβll need MKR to farm every single SubDAO token.
13/ Maker's Endgame Plan assumes a possibility that there will be a significant deterioration of regulatory security alongside a global economic and social decline.
To adapt, survive and recover Maker will have 3 stances: Pigeon, Eagle and Pheonix.
To adapt, survive and recover Maker will have 3 stances: Pigeon, Eagle and Pheonix.
14/ Maker is currently at the 1st stance: Pigeon.
The goal here is not to limit RWA exposure and Dai remains pegged 1:1 with USD.
As Pigeons are not afraid of humans, Maker can tolerate minimal regulatory threats to generate as much income from RWAs as possible.
The goal here is not to limit RWA exposure and Dai remains pegged 1:1 with USD.
As Pigeons are not afraid of humans, Maker can tolerate minimal regulatory threats to generate as much income from RWAs as possible.
15/ In fact, Maker is already generating 57% of its revenue from RWAs.
Spark protocol will help to boost DAI's supply, thus generating more income.
It may also integrate Element Finance and Sense Finance to offer fixed rate borrowing and diversify income.
Spark protocol will help to boost DAI's supply, thus generating more income.
It may also integrate Element Finance and Sense Finance to offer fixed rate borrowing and diversify income.
16/ Overall, this is the new Maker: more aggressive and determined, not the benign and passive one we saw until now.
I bet Aave or Compound will support DSR soon enough.
If it's only the Pigeon stance, I'm excited for the Phoenix phase then!
I bet Aave or Compound will support DSR soon enough.
If it's only the Pigeon stance, I'm excited for the Phoenix phase then!
17/ Learn more about the Endgame Plan in my previous thread:
18/ Follow me @DefiIgnas for more insight not found elsewhere.
Like/Retweet the first tweet below if you can:
Like/Retweet the first tweet below if you can:
Loading suggestions...