- MakerDAO’s RWA holdings led to earnings amid stablecoin market points.
- Protocol maintains stability however faces a decline in distinctive customers.
The stablecoin market confronted a big problem as USD Coin [USDC] got here below scrutiny. MakerDAO, the protocol behind stablecoin DAI, additionally felt the impression. However regardless of this, MakerDAO noticed earnings, because of its RWA holdings.
In accordance with knowledge supplied by Delphi Digital, MakerDAO made a $3.8 million revenue by means of its RWA holdings. These holdings contribute considerably to MakerDAO’s general earnings, making up 11.6% of its complete holdings. Actual World Asset (RWA) is a sort of collateral that’s not cryptocurrency-based however is extra conventional and tangible, corresponding to U.S. Treasury Payments and Bonds.
.@MakerDAO has profited $3.8M by means of their investments in U.S. short-term treasuries. pic.twitter.com/q10AkGxLn8
— Delphi Digital (@Delphi_Digital) March 15, 2023
Having a better look
Nonetheless, MakerDAO’s PnL assertion painted a destructive outlook attributable to excessive bills on upgrades and updates. A good portion of MakerDAO’s earnings are probably being spent on upgrading and sustaining the protocol. These bills outweighed their earnings, resulting in a internet loss for MakerDAO.
Supply: Dune Analytics
Nonetheless, MakerDAO’s latest proposal to create PSM circuit breakers exhibits its dedication to enhancing its protocols, contemplating the market’s volatility. This proposal will permit Maker governance to disable a PSM instantly with out governance delay. This step will be sure that the protocol can react rapidly to market modifications and preserve stability.
The state of the protocol was comparatively wholesome as the amount on MakerDAO elevated by 55% over the previous month. This exhibits that regardless of the challenges confronted by the stablecoin market, MakerDAO has maintained its momentum.
Nonetheless, the variety of distinctive customers in the identical interval declined by 14% based on Messari’s knowledge. This decline has affected the general TVL generated by MakerDAO, resulting in a decline over the previous few days.
Supply: Defi Llama
MKR and DAI
Together with a decline in TVL, MKR token’s costs declined.
Nonetheless, whale curiosity within the token skyrocketed. This curiosity from whales may very well be attributable to the truth that the market cap of DAI elevated materially over the previous couple of days. This curiosity in each MKR and DAI indicated the potential for future earnings and perception within the long-term viability of the protocol.
Supply: Santiment
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