DeFi Platform MakerDAO Hits $1B TVL, Doubles in 1 Month

A quick look at Defipulse shows that the $1 billion TVL on Maker comprises 3.1 million in ETH and about 98,000 in BTC.

By · Jul 27, 2020 . 8min read


Just when you think Bitcoin or Ethereum pump would steal the show from the DeFi boom making the rounds for a couple of months now, MakerDAO just hit $1B Total Value Locked – TVL, doubling in just 1 month.

To begin with, this represents a new all-time high from its previous $764 million Total Value Locked (TVL) of February 14, 2020.

A quick look at Defipulse shows that the $1 billion TVL on Maker comprises 3.1 million in ETH and about 98,000 in BTC. Maker users have locked a total of 2.4 million ETH in the smart contract protocol as at publication time. Among other DeFi projects like Compound Finance, Aave, Synthetix, MakerDAO enjoys 27.4% market dominance.

MakerDAO showing a meteoric rise of $1 billion TVL
TVL almost doubled in July hitting $1 billion
Source: Defipulse
MakerDAO's market dominance of 27.43 propelling its $1 billion TVL
MakerDAO’s market dominance over other DeFi platforms
Source: Defipulse

MakerDAO is a decentralized credit platform on Ethereum that supports DAI, a stablecoin whose value is pegged to USD. Anyone can use Maker to open a Vault, lock in collateral such as ETH or BAT, and generate DAI as a debt against that collateral. DAI debt incurs a stability fee (i.e., continuously accruing interest), which is paid upon repayment of borrowed DAI. Borrowers burn the MKR along with the repaid DAI. Users can borrow DAI up to 66% of their collateral’s value (150% collateralization ratio).

Interesting features on MakerDAO driving credibility, transparency and more decentralization

Beyond the volume, it recently also added four “Light” Feeds into its protocol. These are Infura, Gitcoin, Etherescan and Kyber Network to the existing Oracle group to make the protocol even more decentralized. Obviously, these are reputable firms within the Etherereum’s ecosystem. They help by providing more credibility to data pooled in the protocol for users. In turn, users are able to make a better-informed decision on the assets listed. MakerDAO’s Oracles update prices on the blockchain every time they change by 0.5% or more

Subsequently, adoption for the MakerDAO’s stablecoin DAI is increasing even among merchants as users of Request Invoicing now have the ability to get their invoices paid directly in DAI. It is also presently dependable across major crypto debit cards including Monolith, Bitwala, Coinbase, Wirex, and some others. This makes spending crypto easy. Therefore, perhaps propelling MakerDAO’s growth and it hitting the $1B TVL with perhaps more to come.

DAI, a booming stablecoin among Latino Americans

Latin America many of which experience struggling economies, hyperinflation, and capital control are also buying into DAI’s increased usage. DAI keeps gaining traction across Latin America––especially in Brazil, Colombia, Venezuela, and Argentina. The list keeps increasing daily as DeFi boom keeps making the headlines week in week out.

DSR a feature targetting Lenders and Startups

MakerDAO also has a feature called the Dai Savings Rate (DSR). DAI holders can lock their DAI into Maker’s DSR contract and earn a variable interest rate in DAI. Maker holders generate this interest from stability fees. Launched in November of 2019, it touted this to be a gamechanger. Interestingly, it targets this feature not only to lenders on the platform but also startups within crypto’s broader ecosystem.

Delta Exchange, a crypto derivatives platform, announced the launch of an interest rate swap contract for DAI, MakerDAO’s dollar-pegged stablecoin. This platform aims to take advantage of the DSR feature on MakerDAO.

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