Maker Protocol Achieves Record Annualized Revenue of $213 Million

Maker Protocol, a leading stablecoin issuance platform on the Ethereum blockchain, has reported a remarkable surge in annualized revenue, reaching an all-time high of $213 million on October 21, according to data from Makerburn.com. This substantial increase in revenue marks a momentous leap from the previous peak of $172.3 million in May 2021, showcasing the growing prominence and success of the MakerDAO community.

Source: Makerburn.com

Maker Protocol’s robust performance can be attributed to its steady supply of the stablecoin DAI, which recently reached a new yearly high of $5.61 billion, as per Makerburn.com data. This achievement has solidified Maker’s position as a dominant player in the DeFi space.

The revenue generated by Maker Protocol primarily stems from the fees paid by users when borrowing DAI, as well as fees earned in the event of a liquidation of a borrowing position. The surge in revenue has been a direct consequence of various factors, including increased deposits of tokenized real-world assets (RWAs) for minting DAI and the higher yields offered to DAI holders, which, in turn, attract even more collateral.

Tokenized RWAs are cryptocurrency tokens backed by real-world financial assets such as stocks, government bonds, real estate, or art. The MakerDAO community’s strategic decision to embrace these assets has resulted in significant benefits. According to data from DeFiLlama, MakerDAO’s RWA deposits have soared past $3 billion, now constituting a substantial 42.7% of the protocol’s total deposits, which have reached an impressive $7.54 billion.

Sébastien Derivaux, the former real-world finance lead at MakerDAO and co-founder of Steakhouse Financial, emphasized the significance of the Maker community’s focus on RWAs, stating that the current surge in revenue is a culmination of years of work in this domain. He also expressed optimism about the future, noting that revenues are poised to rise further if Treasury bill yields increase.

Derivaux’s statement aligns with the current economic landscape, as Treasury bills are currently yielding 5%, a consequence of the Federal Reserve’s efforts to address inflation in the United States by raising interest rates. This development has bolstered Maker Protocol’s financial position and its ability to attract more users.

The DAI deposited into Spark Protocol, represented as sDAI, plays a crucial role in this ecosystem, accounting for 31.3% of DAI’s total supply, valued at $1.7 billion. sDAI’s supply has experienced substantial growth, increasing more than fivefold from around $340 million since August. This surge was initiated following a Maker community vote to increase sDAI yields. Holders of sDAI are currently enjoying an annual rate of 5% from DSR deposits, further enhancing the attractiveness of the protocol.

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