MakerDAO's Annualized Fee Revenue Hits $94.87 Million, Thanks to Interest Income from U.S. Treasury Bonds
Maker's MKR token saw a 2.8% surge in the last 24 hours, while its TVL fell by 15.8% over the last month. MakerDAO achieved a significant milestone as its annualized fee revenue hit $94.87 million, the highest since mid-February 2022. The surge in revenue was attributed to interest income earned from U.S. Treasury bonds purchased using the protocol's Peg Stability Module (PSM) USDC. Despite the positive news, concerns remain as Maker's TVL experienced the highest monthly drop among the top 10 DeFi platforms, according to DeFiLlama. MKR tokenholders use the fee revenue to fund the protocol's operational costs and buy and burn MKR tokens to dilute the supply.
MakerDAO Community Votes on Proposal to Decrease GUSD Stablecoin Reserves by $390 Million
June 15 (Cointime) - MakerDAO, a decentralized finance (DeFi) lending platform and stablecoin issuer, is considering reducing its holding of Gemini's GUSD stablecoin from $500 million to $110 million in its DAI stablecoin reserve.
Arbitrage Bot Flash Loans $200 Million Worth of DAI from MakerDAO, Makes $3.24 Profit
June 14 (Cointime) - an arbitrage bot utilized MakerDAO's 'DssFlash' contract to borrow $200 million worth of DAI stablecoin without incurring fees. The bot then used the DAI to borrow $2,300 worth of wrapped ether (WETH) and purchased Threshold Network (T) on Curve before selling it on Balancer. Although the bot made a profit of $33, it incurred almost $30 in transaction and protocol fees, leaving a net profit of $3.24. Flash loans have been used for nefarious purposes in the past, resulting in significant losses on DeFi platforms.
MakerDAO Community Votes to Purchase Up to $1.28 Billion in US Government Bonds via BlockTower Capital
The MakerDAO community has approved a proposal to open a new real-world asset (RWA) vault named BlockTower Andromeda, which will invest up to $1.28 billion in short-dated US Treasury bonds funded by Maker's overcollateralized DAI stablecoin.
Bitcoin Remains in Accumulation Phase as BRC-20 Tokens Reach $500M Market Cap
According to Glassnode data, BRC-20 tokens are generating significant fees for miners and approaching a market cap of $500 million. Despite Bitcoin's price remaining below $27K, an analyst suggests that it is in an "accumulation phase."
MakerDAO Community Votes to Drop $500M USDP Stablecoin from Reserves
MakerDAO's community has voted to remove $500 million worth of USDP stablecoin from its reserves, dealing a blow to Pax Dollar as it held half of the token supply. The MakerDAO treasury will now invest its vast reserves in yield-generating strategies, including Gemini and a 2.6% yield on the $500 million of USDC it holds from Coinbase Prime.
MakerDAO Spends $27.66 Million Annually to Keep the Protocol Running on Ethereum
According to DeFiLlama data, MakerDAO spends $27.66 million annually to maintain its decentralized money market on Ethereum, which allows users to borrow and lend assets such as ETH.
MakerDAO Founder: Decentralized Currency Can Prevent Monetary Enslavement
Founder of MakerDAO, Rune Christensen, has expressed his disappointment with the rise of undesirable human behaviour within the decentralised autonomous organisation (DAO). Christensen believes that as the money increases, political forces become more intense, leading to insufferable politics. He plans to rejuvenate the MakerDAO platform with the Endgame update, which uses AI tools to create a governance equilibrium and enable permissionless growth of SubDAOs. Christensen sees creating a successful alternative to centralised governance structures and currencies as critical, stating that centralised currency in the age of blockchains and artificial intelligence is the most powerful tool of slavery.
MakerDAO’s DAI Reduces Dependence on USDC, Increases Backing From Real-World Assets and Ethereum
The amount of Circle's USDC stablecoin backing MakerDAO's DAI has decreased to 23.6%, down from 50% in August 2020. This has reduced concerns over DAI's centralization, as real-world assets are now taking up a larger portion of DAI's backing. MakerDAO currently holds short-term US government bonds worth $1.12 billion, managed by DeFi asset manager Monetalis Clydesdale, and Gemini's GUSD and Paxos's USDP stablecoin account for 20.8% of DAI's collateral share. However, DAI is still exposed to US regulations through companies like Coinbase and BlockTower.
MakerDAO Struggles to Compete with USD Coin and Tether as DAI Faces Declining Revenue and Negative Sentiment
Despite being the largest stablecoin backed by a DAO, DAI is facing challenges in competing with USDC and USDT. Its network growth is declining, indicating reduced interest from new addresses, raising questions about its ability to maintain its position as the leading DAO-backed stablecoin.
