How MakerDAO is changing DeFi?
How MakerDAO is changing DeFi?
What is DSR? Bullish on $MKR, RWA?
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How MakerDAO is changing DeFi? What is DSR? Proposal just past on increasing it to 8%
This thread will go over
▶️ Impact on DeFi sector
▶️ Bullish on $MKR, RWA?
▶️ Risk
▶️ but is it really decentralised?
TLDR
📍DSR act as yield bearing vault like a saving account with a bank.
Dai holder can deposit it into DSR to earn 3.19% currently and proposal just past to increase to 8%
📍DSR "risk free" yield is 8% is attract compare to stablecoin yields on the market with a high capacity
📍Bullish signal for $MKR if DAI captures more stablecoin market share?
❓What is @MakerDAO
Maker is a peer-to-contract lending platform.
User can deposit asset into the protocol to mint stablecoin $DAI
$MKR is a goverance token to vote on upgrades with a buyback based on fees from protocol
TLDR of relationship between $MKR and DAI
More adoption of DAI
More Fee generated from stability fees
More buy back of $MKR
* MakerDAO keeps a buffer of 50M DAI, when the surplus this buffer, the exceeding amount is used to buy back and burn $MKR
Can checkout makerburn website
▶️ Impact on DeFi sector
With DeFi stablecoin yield being low due to low trading fee n lending utilisation rate.
DSR as a low risk yield is attractive this will further push down the interest of DeFi user providing liquidity for swaps & lending on top of the recent hacks
▶️ Bullish on $MKR, RWA?
Yield returns are often the best way to capture users. remember luna? kek
▶️ Makers Revenue has exceeded expenses
(rare case in crypto lol)
with continue trend and annualized profit of 84m leading a sexy 14.6x P/E ratio
▶️ MakerDao is yield is NOT emissioins with high capacity (RWA)
▶️ Sitting on one of the biggest protocol for RWA narrative
Feel free to read more on @yieldinator bullish case on $MKR
▶️Risk
a16z sold their last token last week
@_portersmith from a16z has mentioned introducing MetaDAO will not improve the situation of regulation.
"quote from a chinese article @TechFlowPost" might be lost in translation a bit.
💡Personl thought
If you are investing into any RWA, regulation or potential change of regulation will always be a risk u can not control
Investing into DAI for 8% or just take a small size bet on $MKR as happy delta?
i prefer to take small happy delta
▶️ but is it really decentralised?
Summary of thoughts
in short Bullshit on $MKR
Worry this will further suck money out of DeFi
Got me thinking...
If people are actually just looking for 8% yield y r they still in DeFI?
the more people enter DSR = more people bearish DeFi?
Can i say DSR is just an easy way to off-ramp to on-chain yield?
Join in on this conversion
https://t.me/+GyRvq_wp-To1ZjJl
Additional info
MakerDAO's Endgame with @RuneKek