The annualized revenue associated with the acclaimed decentralized finance protocol, Maker, has recently reached a pinnacle of over $165 million, a figure that hasn’t seen such altitude in the past two years. Further information from Makerburn.com shows revenue growth that shatters the high point from November 2021, an achievement that last found parallels in May 2021.
Simultaneously, the pool of DAI, the stablecoin backed by the US dollar and issued by MakerDAO, has surged to a sumptuous 5-month apex of 5.35 billion DAI. This increase can be traced to a gradual influx of users, including several notable crypto personalities like the founder of Tron, Justin Sun, who have exhibited an affinity for purchasing DAI. The primary incentive here seems to be the enticing interest rate on deposits currently being offered by the Maker protocol.
Consider the bump in the deposit rate, hitting 8% annually. This substantial adjustment was green-lighted by the Maker community on August 4, with the protocol’s founder Rune Christensen publicizing the update to his legion of followers two days following the decision.
Rune explains the reason behind such a high rate as a result of the minimal usage of the Dai Savings Rate (DSR); only 8% of Dai holders have engaged with it. This low activity has hence prompted the Enhanced DSR system to inflate the rate to attract a larger user base. The expectation is that as the user base expands, the rate will subsequently deflate.
Maker’s DSR contracts provide holders of DAI with opportunities to earn a fraction of the protocol’s income by depositing DAI. This income is derived from both yields on collateral deposits and fees remunerated by users of the protocol.
Undeniably, with Justin Sun and cryptowallets affiliated with OlympusDAO topping the Top Depositors ranking on Makerburn.com with DAI deposits of $148.5 million and $124.8 million, respectively, there’s proof that crypto enthusiasts are capitalizing on the enhanced interest rate. Whether these high figures would steady or dwindle, only time will tell, but as of now, they form a significant part of the decentralized finance landscape’s narrative.
Source: Cryptonews
