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DAI Circulation Approaches 5 Billion As MakerDAO Unleashes Key Updates

In a recent announcement on the social media platform X (formerly Twitter), MakerDAO, the Ethereum-based protocol responsible for issuing the DAI algorithmic stablecoin, provided insights into the performance of the Maker Protocol following recent changes.

Over the past few weeks, MakerDAO has implemented significant updates to the protocol and the DAI stablecoin. 

Introducing the Accelerated Proposal and the direct deposit module (D3M) to Spark’s Metamorpho Vault has notably impacted the ecosystem.

Increased DAI Supply And Demand

Looking at key metrics that demonstrate the effects of these changes to the protocol, the DAI supply in circulation currently stands at nearly 5 billion, reflecting a growth of approximately 300 million over the past month. This growth indicates continued demand for the stablecoin. 

On the other hand, the Dai Savings Rate has significantly increased since implementing the Accelerated Proposal. 

Approximately 1.54 billion DAI are currently deposited in the Dai Savings Rate, of which approximately 976 million DAI are sDAI, representing an increase of roughly 400 million DAI in deposits.

The Maker Protocol’s total value locked (TVL) amounts to approximately $8.4 billion across various vault types. This TVL growth can be attributed to strategic deployments in D3M modules, significant contributions from Ethereum-based collaterals, and the integration of real-world assets. These developments have enhanced the protocol’s diversification and resilience.

MakerDAO Ethereum Vaults Thrive

A notable addition to the MakerDAO ecosystem is the Morpho DM3, which enables the Morpho Vault to mint DAI. Currently, the lending pool has deployed 200 million DAI.

According to the protocol’s post, this allocation is projected to generate approximately 50 million in annual income for the Maker Protocol, making it the second-largest core vault in terms of annualized fees. It will play a significant role in generating revenue and contributing to the Maker Protocol’s sustainability.

Among the Ethereum vault types within the MakerDAO ecosystem, the ETH-C vault stands out with the largest value locked in crypto collateral at approximately $1.88 billion. 

This vault generates approximately $43 million in annual fees, underscoring its importance within the Maker ecosystem and contribution to the protocol’s revenue streams.

Another important component is the Spark D3M, which is supplied with around 970 million DAI. This module is projected to generate an annual income of approximately 28 million. 

These recent changes have positively impacted the Maker Protocol. The increase in DAI supply, growth in the Dai Savings Rate, expansion of collaterals, and introduction of different vault types have contributed to the protocol’s growth and development. 

MakerDAO

Despite the growth in the MakerDAO ecosystem, the native token MKR has experienced a continuous 5.9% price decline over the past fourteen days. 

In the last seven days alone, the token has recorded a significant 17% price drop, resulting in its current trading price of $3,355.

However, despite the price decline, Token Terminal data reveals positive trends. The protocol’s market capitalization currently stands at $3.3 billion, reflecting a notable 28% increase over the past 30 days. 

Additionally, trading volume for the MKR token has experienced a substantial surge, reaching $5.9 billion, representing a 119% increase over the same time frame.

Featured image from Shutterstock, chart from TradingView.com 

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MakerDAO Massive Upgrade, A New Era For DeFi?

MakerDAO, the decentralized finance (DeFi) project behind the popular stablecoin DAI, has announced a major update called “Endgame.” Endgame is designed to enhance efficiency, resilience, and participation by applying fine-tuned AI tools to open scalable processes. The goal is to create a strong governance equilibrium that enables the permissionless growth of SubDAOs and parallelized product development in an emergent, community-driven ecosystem.

Revolutionizing DeFi

According to the announcement, The short-term objective of Endgame is to grow MakerDAO into the largest and most widely used stablecoin project within 3 years. From there, the project aims to anchor its growth in an autonomous DAO economy that ensures its growth can accelerate and safely reach any scale level without putting the resilient governance equilibrium at risk.

To achieve this goal, Endgame will be launched in five successive phases. The first phase, called Phase 0, will focus on improving the scalability and efficiency of the Maker Protocol. This will involve upgrading the system’s architecture and deploying AI tools to optimize various processes.

Phase 1 will introduce the SubDAO framework, enabling the creation of specialized DAOs that can operate independently or in conjunction with the MakerDAO governance structure. This will allow for parallelized product development and the emergence of a community-driven ecosystem.

The SubDAOs are further divided into Facilitator & Allocator DAOs, and their genesis tokens will be distributed through the NewStable farms. This will be supported by the Smart Burn Engine, which will accumulate and burn LP tokens for NewStable against NewGovToken using protocol surplus.

Phase 2 will focus on enhancing the governance mechanism of MakerDAO to ensure that it remains resilient and adaptable as the project grows. This will involve the development of a comprehensive governance framework that incorporates the SubDAOs and ensures that they are aligned with the project’s overall goals.

Phase 3 will introduce new collateral types to the Maker Protocol, expanding its use case and increasing its adoption. This will include integrating real-world assets, such as real estate and stocks, as collateral, providing new opportunities for investors and borrowers.

Finally, Phase 4 will focus on the project’s long-term sustainability by introducing a decentralized treasury and investment strategy that will ensure the long-term growth and stability of the MakerDAO ecosystem.

MakerDAO Biggest Upgrade Yet

According to the analysis by the DeFi researcher under the pseudonym “DeFi Ignas,” To further streamline governance, MakerDAO is also introducing an AI Tools system to enable users to verify governance rules and processes or generate new governance proposals.

The Sagittarius Lockstake Engine (SLE) will incentivize NewGovToken holders to participate in governance by locking their tokens and delegating their voting power to receive rewards as NewStable income or SubDAO tokens. 

Governance participation is gamified for accessibility, which creates earning opportunities. Furthermore, To encourage participation in governance during challenging times, MakerDAO is imposing a 15% exit fee on locked tokens. Bootstrapping rewards will also be offered to join governance.

Per DeFi Ignas Analysis, the native token for gas fees will be Savings-NewStable, a tokenized version of NewStable actively earning the Savings Rate. Consensus staking will be with NewGovToken through the Sagittarius Lockstake Engine.

Overall, This latest upgrade announcement from MakerDAO represents a major step forward for the DeFi ecosystem. By reducing governance complexity and increasing efficiency, MakerDAO is positioning itself to become the world’s largest and most widely used stablecoin project while maintaining its resilience and adaptability in the face of rapidly changing market conditions and potential regulatory risks.

According to DeFi Ignas, the ultimate aim is to create an Unbiased World Currency that is not necessarily pegged to the USD.

MakerDAO

Featured image from Unsplash, chart from TradingView.com

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Maker DAO Shows Bullish Sentiment After A While, Eyes $800?

  • MKR trades below 50 and 200 EMA on the daily timeframe. 
  • Price breaks out of a falling wedge with eyes set on key resistance of $800.
  • The price looks strong on low and high timeframes.

Maker DAO (MKR) price has had a rough time recently as price beaks out of falling wedge on the daily timeframe against tether (USDT). Despite being a major player in the crypto industry, the price of Maker DAO (MKR) has struggled to replicate its run to a high of $8,000. (Data from Binance)

Maker DAO (MKR) Price Analysis On The Weekly Chart 

The price of MKR has had a fantastic run, with such movement from a low of $750 to a high of $8,000 in a matter of weeks, creating a sense of surrealism in the hearts of traders and major crypto players.

Despite such a run, the bear market has had an impact on MKR’s price, which has fallen from $8,000 to $600, a drop of more than 70% from its all-time high.

The price of MKR rallied from its weekly low of $600 to a high of $1,100 before failing to break above that region to higher heights and falling to a low of $650.

MKR’s price must break and close above $1,100 in order to have a better chance of trading higher. The price of MKR has formed a downtrend line, which is acting as resistance; flipping the area of $1,100, which is acting as weekly resistance, into support will signal a more relief bounce for the price of MKR.

If the price of MKR fails to break through this key resistance region, the price of MKR may retest the $600 support and demand zone for more buy orders.

Weekly resistance for the price of MKR – $1,100

Weekly support for the price of MKR – $650.

Price Analysis Of MKR On The Daily (1D) Chart
Daily MKR Price Chart | Source: MKRUSDT On Tradingview.com

The daily timeframe for MKR prices looks promising, as prices broke out of a falling wedge, indicating a shift from a downtrend to an uptrend. With this volume from MKR prices, we could see them retest their daily resistance of $800.

On the 1D timeframe, MKR is currently trading at $681, below the 50 and 200 Exponential Moving Averages (EMA), which act as resistance. The resistance levels of the 50 and 200 EMAs are represented by the prices of $790 and $1,200, respectively.

The price of MKR needs to flip the $1,000 resistance into support to signal a relief bounce as the price of MKR has kept trading at its daily low.

The Relative Strength Index (RSI) for MKR is above 40 on the daily chart, indicating low buy order volume. 

Daily resistance for the MKR price – $800.

Daily support for the MKR price – $600.

Featured Image From Market Periodical, Charts From Tradingview