• MakerDAO recently proposed to onboard $100 million worth of USDC into a YearnFinance on-chain vault, giving MakerDAO an estimated yield of 2% annually.
• Stablecoins make up 70.7% of the overall number of assets being held by MakerDAO, with Ethereum making up 15% and real-world assets making up 12%.
• The number of unique users using the MakerDAO protocol declined by 23.16% over the last month, and the percentage of MKR being held by large addresses has declined.
MakerDAO, the leading decentralized finance (DeFi) platform, recently announced a proposal to onboard $100 million worth of USDC into a YearnFinance on-chain vault. This move would give MakerDAO an estimated yield of 2% annually, and allows MakerDAO to take advantage of the stability of USDC and the risk-adjusted strategies of Yearn Vault.
Looking at the current asset distribution of MakerDAO, stablecoins make up 70.7% of the overall number of assets. Ethereum (ETH) makes up 15%, and real-world assets (RWA) make up 12%. While RWA makes up a relatively small percentage of the overall assets, they have been a significant contributor to the overall revenue generated by MakerDAO. During press time, RWA was responsible for 56.9% of the overall revenue generated by MakerDAO, and the asset class has helped MakerDAO grow its revenue by 3.09% over the last month.
Unfortunately, despite the positive impact of RWA on MakerDAO’s revenue, the number of unique users using the MakerDAO protocol declined by 23.16% over the last month. This decline in interest from users appears to have also impacted the state of the MKR token. According to data provided by Santiment, the percentage of MKR being held by large addresses declined, suggesting that whales may be losing interest in the token.
In order to combat this issue, MakerDAO is exploring new ways to attract users. The proposed $100 million USDC move is part of this effort, as it could potentially generate more revenue for MakerDAO and incentivize users to participate in the platform. With that said, it remains to be seen if this approach will be successful in the long run.