Maker made history launching the first automated cryptocurrency lending platform being the first blockchain-based protocol in 2017 to help trigger a boom in what is known as decentralised finance or defi.
The $60 Billion DeFi industry is now seeing Maker paving a way for a huge source of growth. Lending against Trillions of dollars of “real-world” assets like residential properties while still being in competition with banks and financiers.
The fact that MKR tokens have seen a 55% spike in prices, the token has seen growth of nearly six-fold having a market valuation of $4 Billion Dollars.
There will be Two tranches of interest-bearing tokens being issued under the Ethereum blockchain’s ERC-20 token standard – DROP and TIN – against non-fungible tokens (NFTs) based on individual deposits from New Silver.
“This is DeFi taking on traditional finance,” Sébastien Derivaux, a community member of MakerDAO, told CoinDesk in an email. Initially, the project will finance loans to renovate houses in the U.S., he said.
Maker as we know is famous for it’s stablecoin dai, is indeed one of the biggest DeFi protocol having over $9.5 Billion world of system collateral.
Derivaux says MKR faced pressure from the early investors of the enterprise, including Polychain, Maker Foundation and Andreessen Horowitz, with sale pressures last year as well.
This year, the market capitalization of Dai which tripled to over $3 Billion reflects an explosion in demand, according to Glassnode, the provider of crypto-currency-specific data.
Maker is by far the most profitable DeFi protocol, according to data from The Block.
Derivaux said more value investors are coming to Maker, in line with its token burning commitment.
“Derivaux wrote this week in a post that Maker could onboard two packages a month of “real-world” collateral, starting in May, eventually increasing to about 10% of the protocol’s overall assets.”
There was a narrative that dai can’t scale because it has to be overcollateralized,” Derivaux said. “Well, we are still overcollateralized, but the collateral space is now multi-trillions.”