The Surge in DAI Supply and Maker’s Revenue
The supply of DAI stablecoin has reached a 5-month high of 5.35 billion, according to data from Makerburn.com. This increase in supply has been driven by users, including well-known DeFi entities like Justin Sun and OlympusDAO, who are rushing to take advantage of the higher returns in Maker deposits. Maker is a stablecoin issuing platform on Ethereum that is governed by the MakerDAO community.
Here are the key points to note:
– The supply surge has led to a two-year high in Maker’s annualized revenue, which now stands at 165.4 million dollars. This means that Maker is currently earning approximately $165 million in fees per year.
– The short-term U.S. Treasury yield has also played a significant role in boosting Maker’s revenue. It reached a five-month high of 4.91%, and since MakerDAO has substantial exposure to U.S. government bonds, this has contributed to the increase in revenue.
– U.S. government bonds account for 57.7% of MakerDAO’s total revenue, according to Derivaux’s dune dashboard.
– As long as short-term rates remain high, MakerDAO’s revenues are expected to remain elevated. Additionally, MakerDAO’s revenue is anticipated to increase further when Paxos and Gemini start paying returns on their stablecoin deposits, similar to USDC yields via Coinbase Custody.
– Derivaux, a spokesperson for MakerDAO, expressed satisfaction with the effort made to enable these assets to yield returns, noting that it has finally come to fruition.
In conclusion, the surge in DAI supply and Maker’s revenue is driven by users seeking higher returns and the favorable short-term U.S. Treasury yield. This trend is likely to continue as long as rates remain high and other platforms start offering returns on stablecoin deposits.
Hot Take
The surge in DAI supply and Maker’s revenue highlights the growing demand for stablecoins in the crypto market. With prominent figures like Justin Sun and OlympusDAO taking advantage of the higher returns, it’s clear that stablecoins like DAI are becoming a popular choice for investors. As the market evolves and more platforms offer returns on stablecoin deposits, we can expect to see further growth in this space.
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