Maker Protocol’s Annualized Revenue Hits Record High
According to Makerburn.com, the annualized revenue of stablecoin issuer Maker Protocol reached a new all-time high of $203 million. This surpasses the previous peak of $172.3 million in May 2021. Maker is an Ethereum-based platform that issues the stablecoin DAI and is governed by the MakerDAO community. The supply of DAI has also reached a new yearly high of $5.6 billion.
Surge in Revenue Driven by Tokenized Real-World Assets
Maker earns money through fees paid by users for borrowing DAI and fees earned from liquidations. The recent surge in revenue can be attributed to increased deposits of tokenized real-world assets (RWAs) for minting DAI and higher yields for DAI holders. RWAs are crypto tokens backed by physical or real-world financial assets such as stocks, government bonds, real estate, or art.
MakerDAO’s RWA deposits have surpassed $3 billion, accounting for 42.7% of the protocol’s total deposits. Sébastien Derivaux, MakerDAO’s former real-world finance lead, stated that the protocol is benefiting from years of work on RWAs and expects revenues to increase further if T-bill yields rise.
Yield Opportunities for DAI Holders
The DAI Savings Rate (DSR) mechanism via the Spark Protocol has also contributed to the high demand for DAI by offering increased yields for DAI holders. DSR generates yields from protocol fees paid by users who deposit assets into Maker to mint new DAI.
sDAI, which represents the DAI deposited into Spark Protocol, accounts for 31.3% of DAI’s total supply at $1.7 billion. Its supply has increased more than fivefold since August, and holders currently earn an annual rate of 5% from DSR deposits.
The launch of sDAI on Gnosis Chain further boosted DSR deposits, with its supply increasing from $20 million to nearly $50 million. These sDAI holders deposit their tokens into DeFi protocols on the Gnosis Chain for enhanced yields.
Hot Take: Maker Protocol’s Revenue Soars as Demand for DAI and Tokenized RWAs Increases
Maker Protocol, the stablecoin issuer, has seen its annualized revenue reach a new record high of $203 million. This surge in revenue can be attributed to the increased demand for DAI and the growing deposits of tokenized real-world assets (RWAs). MakerDAO’s focus on RWAs has paid off, with RWA deposits surpassing $3 billion and accounting for a significant portion of the protocol’s total deposits. Additionally, the yield opportunities provided by the DAI Savings Rate mechanism have attracted more DAI holders, further driving revenue growth. As Maker Protocol continues to innovate and attract users, its revenue is expected to continue rising.
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