BTC-Newswire

Why MakerDAO’s Endgame is a ‘new’ MKR and DAI

Press Releases Crypto News AMB-Crypto Why MakerDAO’s Endgame is a ‘new’ MKR and DAI

Maker explained that it would reform DAI and MKR.
DAI might not be able to compete with USDT despite plans to drive its supply up.

If the plan of MakerDAO’s [MKR] co-founder Rune Christensen comes to pass, then the project might upgrade its governance token and decentralized stablecoin DAI. AMBCrypto went through the memo Christensen wrote to the Maker community on the 12th of March.

Most of it was centered around the Endgame, which aims to scale the supply of DAI to 100 billion and more. For the unfamiliar, DAI’s current supply was 5.35 billion.

An upgraded version does not seem like the solution

In May 2023, the Maker team introduced the Endgame as a way to support DAI. One of its mission was to make it compete with stablecoins like USDT. But since that time, the development had failed to impact the stablecoin.

This time, Maker is saying that an upgraded MKR and DAI would get it closer to its objectives. Should this happen and DAI gets a 100 billion supply, the market cap of the stablecoin might jump from the 27th position.

However, this forecast does not mean that other stablecoins like USDT and USDC which are far above it, would remain stagnant. At press time, MakerDAO’s Total Value Locked (TVL) had increased by 20.32% in the last 30 days.

The TVL assesses the overall health of a particular protocol. Therefore, the increase above suggest that market participants believe their deposits would get a better yield.

But in terms of the stablecoin volume, DAI has been lagging. Using data from DeFiLlama, AMBCrypto noticed that participants bridged the stablecoin from Ethereum [ETH], Go to Source to See Full Article
Author: Victor Olanrewaju

Did you like this?
Tip BTC Newswire with Cryptocurrency