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MakerDAO Is The Most Expensive DeFi Protocol To Run, Requires Millions

Press Releases Crypto News Bitcoinist MakerDAO Is The Most Expensive DeFi Protocol To Run, Requires Millions

MakerDAO, a decentralized money market on Ethereum for users to borrow and lend assets, including ETH, spends $27.66 million annually to keep the protocol running, DeFiLlama data on May 31 shows.

This sum of money is utilized to cover expenses such as taking care of the 97 individuals responsible for maintaining the lending and borrowing protocol and ensuring that the code operates smoothly without any issues.

MakerDAO Has Big Expenses

As of May 31, MakerDAO had spent slightly over $10.6 million in DAI to meet mounting expenses in 2023 alone. DAI is the algorithmic stablecoin minted and managed by MakerDAO, tracking the value of the USD.

DAI Chart On May 31| Source: DAIUSDT On OKX, Trading View

It differs from other popular fiat-pegged stablecoins like the USDT or BUSD, minted by a centralized entity demanding each token in circulation to be backed by an equal amount of fiat currency, primarily the USD.

Thus far, $10.6 million in DAI has been spent. Of this amount, 2,048,873 DAI was allocated for Protocol Engineering, and 15% of the total expenses were used for Sustainable Ecosystem Scaling.

385,875 DAI has been used for strategic finance, 537,448 DAI for growth, and 811,704 DAI for Oracles. Another 903,459 DAI has gone to developing and improving the user interface.

Employees get remunerations and other benefits from funds allocated to the Protocol Engineering Unit. The current monthly budget is 624,165 DAI and is forecasted to drop to 475,089.13 DAI.

Specifically, MakerDAO has approved 396,895.13 DAI monthly for employee compensation and benefits. Only 2,072 DAI has been consumed by travel and other enter

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Author: Dalmas Ngetich

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