Rebirth of MKR: New public chain and RWA stablecoin and spark lending unicorn

TL, DR:

In the past year, MakerDao has achieved the best performance compared to BTC, ETH, and other DEFI protocols. Under the circumstances of 200%, the currency price of MKR has increased by about 500%.
The success of MakerDao stems from its solid fundamental and diverse business models, and it has performed well in the RWA and cryptocurrency markets.In the current unreasonable situation of traditional financial macro conditions and DEFI tracks, we believe that MKR’s commercial layout in the two fields can make it resist risks and obtain considerable benefits.
Active market emotions and Endgame routes indicate future growth.The release of MakerDao Endgame: Launch Season has even boosted market emotions.
Endgame’s challenges include a balance between innovation and risks to ensure the understanding of the interests of the stakeholders.It brings a new token economic model, governance framework, and clear development roadmap to improve its growth, risk resistance ability, and public acceptance ability.
We believe that although the operation is simplified, the focus of its core business is basically unchanged, and the benefits brought by the income end will not be particularly significant in the short term, but the internal communication costs may be reduced and the professionalism and operations of each business may be improved.efficiency.
We believe that for whether MakerDao can continue to lead the future DEFI pattern, Endgame’s effective execution is important. The influence of the roadmap and the promise of MakerDao in innovation will determine the direction of its future success.

background

In the previous bear market, few cryptocurrencies performed well, and Maker (MKR) was undoubtedly one of them.When other blue -chip assets fluctuated, Maker not only kept its own value, but also achieved amazing growth, doubled from March to October 2023.This excellent toughness proves that it can not only survive in adversity, but also thrive under difficult conditions.

But Maker’s charm is not limited to bear markets.With the rise in the cryptocurrency market in early 2024, MAKER’s price rose from 1400 to 2000.This momentum has not stopped; on March 13, the price of the ENDGAME program that everyone was looking forward to was soared to 3,000.Such a surge means that holding MKR may bring up to 5 times the return in the past year!

So, what exactly is MakerDao’s secrets in the bear market and bull market?Is it its solid fundamental, or the success of the changing narrative?What is most interesting is that what exactly is MakerDao Endgame, and what should we look forward to the future?This article aims to explain these questions and reveal the motivation that MakerDao stands out in the unpredictable cryptocurrency market.

MakerDao: DEFI Blazers with a strong adaptability, bridge of encryption and real world assets

In the field of rapid development, MakerDao cleverly responds to the two key trends: integrating real -world assets (RWA) and STETH, successfully highlighted its unique position.This strategy not only enhances its position in the field of decentralization, but also shows its toughness and adaptability.

Staked Ethereum (STETH) integration

In the field of encryption, MakerDao locks about 600,000 Wrapped Staked Eth (WSTTH) through its core protocol and subsidiary Spark.This important integration makes MakerDao the third largest total lock value (TVL) entity, reaching $ 11.67 billion (of which Maker locks 8.67 billion US dollars, SPARK locks 3 billion U.S. dollars), second only to Lido’s $ 34 billion and Eigenlayer’s 118.01)$ 100 million.Unlike Lido and Eigenlayer focusing on pledge and re -pledge services, MakerDao’s DEFI business model surpasses simple asset pledge.

By locking STETH, MakerDao effectively uses these assets as a mortgage to cast its local stablecoin DAI.This process enables MakerDao to obtain revenue by stable costs (interest rates) collected by loan issued by STETH as mortgage.With the fluctuation of Ethereum income, MakerDao adjusts its risk parameters and interest rates to ensure that the system is stable while income generation.This method transforms the fluctuations and income of Taifang into a stable income flow, thereby consolidating its position as the leader of the industry.

RWA strategy

In June 2023, MakerDao integrated U.S. Treasury bonds into its investment portfolio, which means that it is diversified by using RWA to make its income sources diversified.In essence, when there is a highly productive and risk -free alternative option, MAKER’s governors are unwilling to let their balance sheets hold a inefficient and “dangerous” USDC.This decision not only positioned MakerDao as the leaders in the RWA field in the cryptocurrency industry, but also significantly increased its income.

RWA, including physical assets such as real estate and bonds, has become an important part of MakerDao’s revenue and contributed about 60%of its cost income.The income of U.S. Treasury bonds is proven to be a successful strategy, which enhances the revenue stability of Makerdao, leading to annual income of more than $ 100 million.

According to a report from Steakhouse (https://www.steakhouse.financial/projects/makerDao-financial- Report-2023) In 20123, about 56%of the income, totaling 76.3 million DAI, from real world assets (RWA)EssenceFurther analysis shows that 83%of real -world asset income is concentrated in the second half of the year, which is consistent with the period when the federal interest rates continue to grow in the decade.

Source: Steakhouse

MKR: Crypto assets all -weather

MKR has performed well in different market environments due to its strategic configuration in RWA and crypto market borrowing.In a high interest rate environment, MKR shows a strong adaptability and benefits from its RWA investment, which is different from other cryptocurrencies that may suffer losses under such macroeconomic pressures.When interest rates decrease, market liquidity increases and the encrypted market enters the bull market, MakerDao’s strategy is expected to switch to its advantages in cryptocurrencies, especially cryptocurrencies.

Therefore, MakerDao cleverly controls the market cycle, focuses on the borrowing of cryptocurrencies in the bull market, and optimizes RWA income in the bear market to ensure its status as a powerful all -weather crypto asset.

The chart below has confirmed the asset allocation strategy of MAKER.When the Fed’s interest rate reached about 5%of the peak in October 2023, MAKER configured the most assets on RWA -related assets, and obtained revenue from government bonds and other credit -related products.

As interest rates began to decline due to the increase in confidence in the Fed’s control of inflation, MAKER strategically shifted in areas related to encryption.

The current macro situation is not as clear as what we may think: as the inflation figures announced by the US Labor Statistics have not met the expectations of analysts (the CPI in March 2024 is 0.4%, and the expectations are 0.3%), the Federal Reserve has reduced interest ratesExpectation is continuously delayed or even suppressed.JPO’s CEO Jamie Dimeng even mentioned the risk of rising interest rates to more than 8%.The high interest rate environment provides more profit opportunities for the RWA project.Maker is likely to make a profit from RWA again.

Source: https://dune.com/queries/3569610/6008265

Valuation expansion: Narrative evolution after market recovery and Endgame release

The previous part emphasizes the solid business model and impressive profitability of MKR, laying the foundation for understanding its valuation.However, the surge in MKR prices is not only due to its financial performance, because profit is estimated to increase from 500 million US dollars in April 2023 to March 2024, but the price has increased by more than five times.

Observe the data from MakerBurn carefully to reveal another important part of the story: valuation expansion.From June to August 2023, MKR’s price -earnings ratio (P/E) wandered between 10 and 15.By September 2023, this number began to rise, reaching about 20 in February 2024, and then leaped sharply to more than 30 at the end of March 2024.

So, what has been promoted to this eye -catching valuation expansion?

Source: https://makerburn.com/#/charts/revenue

Restore in the market environment

In our article in December 2023, we emphasized the beginning of the sixth cryptocurrency bull market. It has been carried out for more than a year. For details, please see our analysis.At this stage, it promotes the activity of various DEFI projects, which is driven by market activities to enhance and grow expectations.Interactive and transaction volume in this expectation is not only speculative; it can be observed in the DEFI field.Projects such as Balancer, Synthetix, Sushiswap, and Curve Finance are experiencing a significant expansion of multiples. This trend has been confirmed by the Token Terminal data.

However, the extraordinary journey of MKR’s valuation expansion is not just a product of market dynamics, especially its price -earnings ratio by March 2024 is estimated to soar to 30.MKR Endgame’s comprehensive launch in early March 2024 marked a critical moment that promoted its valuation to a new high, and made its growth trajectory and a broader market trend.

This prompts us to discuss more depth: what exactly is Endgame, why can it stimulate so high expectations and support the significantly increased MKR valuation multiple?

Source: https://tokenterminal.com/terminal/metrics/ps-circulating

article:IOSG Research ｜ BTC data shows that we have entered a new round of bull market cycle

MakerDao Endgame: The final plan for operating efficiency, clarity and risk isolation

4.1 Background: MakerDao’s challenge

Low operating efficiency: Although DAOS is widely used in encryption projects, operating efficiency still has problems.MakerDao has also encountered major challenges, including the centralized operation proposal adopted to improve efficiency. These communication obstacles have also blurred members’ understanding of voting and activities.
Advanced competition: The competition in the decentralized finance (Defi) ecosystem is increasingly fierce, and the open conflict between MakerDao and AAVE highlights this.Faced with AAVE’s launch of its stable currency GHO, MakerDao responded by supporting Spark’s development and cooperating with Morpho to establish a new loan pool.These measures highlight the fierce competition pattern in DEFI, and gradually triggered the doubts about MakerDao’s competitive barriers in the rapidly changing market.
Changes in risk control: Recently, MakerDao’s DAI savings rate (DSR) has experienced significant fluctuations, rising from 5%to 16%, and after being adjusted to 13%, it finally adjusted to 10%at the end of April, which challenged the community to stable stability for stability.And predictable interest policy expectations.In addition, they extended the limit of D3M to 2.5 billion DAI and cooperated with Morpho to establish a USDE pool, reflecting the strategic transformation of higher risk tolerance.These measures are closer to hedge fund strategies instead of traditional central banks, showing MakerDao’s efforts to deal with external DEFI competitors, and may sacrifice basic stability.

In order to deal with these challenges while maintaining its decentralized characteristics, MakerDao introduced the Endgame framework in the third quarter of 2022, which was launched in the first quarter of 2024.This framework aims to improve the scalability, risk tolerance and user participation of MakerDao.

4.2 content in the route diagram

Key changes:

Maker Core is not directly related to its business, and even DAI loans will be carried out through Spark.
Maker’s Endgame will introduce two types of SubDao: the main SUBDAO, including AlloCatordao and FacilitATORDAO, as well as the secondary SubDao called Minidaos.The main Subdao has a large number of tokens, which is mainly allocated through Genesis Farming, used for employee bonuses, and continuously allocated according to later proposals.Minidaos also follows the Genesis Farming model, but the specific allocation strategies in various Farming channels are different.
Endgame has made a key update on the use of MKR: it allows the purchase of liquidity pool tokens to make Maker Core more related to the interests of Subdao. Every year, new castings are supported to support SUBDAO and employee incentives, as well as a new module. In this module, in this moduleThe locked MKR enables governance to participate and receive rewards, and will be destroyed when extracted.

The entire proposal is quite long, including many technical details.However, the key features and considerations of improvement can be summarized into the following categories:

4.2.1 Business side

1. Stimulate long -term participation

MKR as a mortgage: It is a major change to use MKR as a mortgage in the Sagittarius engine.It is part of the Maker Endggame, which enables MKR to be used as a collateral to encourage long -term pledge to obtain rewards and punishment to enhance the stability and governance of the Maker ecosystem.
Reward and punishment: Unlike past models, the SagitTarius seat engine introduces 15%of the pledge to reduce punishment, promote stability, and keep the interests of the holder consistent with the sustainability of the ecosystem.

2. Risk management mechanism

Hard clearing ratio: set to 200%. If you fall below this threshold, the vault will be liquidated.
Soft liquidation ratio: 300%threshold for preventiveness, if not recovered within a week, liquidation vault.
Risk control: The hard clearing and soft -clearing trigger mechanism in Maker Endgame aims to protect the interests of all stakeholders, such as MKR holders and DAI users, to ensure that the system maintains good mortgage and the toughness of market fluctuations.However, the introduction of endogenous collateral brings major risks.Price fluctuations may trigger the death spiral of MKR sales pressure, and further increase its volatility as a collateral.

4.2.2 Operation side

1. Subdao

The relationship with Maker: Subdao is an autonomous organization within the Maker ecosystem. Each has its own governance tokens and the field of attention.For example, Spark Subdao focuses on loan and Defi products, and operates on a large scale with Maker’s infrastructure.
The relationship with MakerCore: The relationship between MakerCore and Subdao has changed, and MakerCore exit from the forefront maintenance, focusing on allocating DAI through these subdao.MakerDao allocates the credit limit for Subdao, so that they can have sufficient liquidity.MakerCore sets risk parameters, including acceptable collateral types and excess mortgage requirements to ensure the stability of DAI.As the exchange of these services, MakerDao earns deposit fees from DAI managed by SubDao, creating a symbiotic system with strong liquidity and income.
Value distribution: Through the specified inflation mechanism, the value is shared between Subdaos and MakerDao, and some new MKR are allocated to SubDao.These SubDao promises to invest in MKR and DAI to enhance the currency value of market liquidity and ecosystems.This distribution depends on the pledge of the mkr/dai liquidity pool tokens, coordinating the incentives of Maker and its Subdao.

New stablecoin (NST) allocation

Profit transmission and distribution

2. SubDao category

AlloCatordaos:

Can generate DAI directly from Maker.
After Maker’s core approval, DAI has the right to assign DAI in the DEFI ecosystem.
Provide the entrance for new participants to enter the MAKER ecosystem.
With the ability to create Minidao to increase autonomy and flexibility.

Minidaos:

An experimental concept has no practical example so far.
It aims to provide more independent structure options for AlloCatordao when needed.

Facilittordaos:

Responsible for organizing and managing internal mechanisms of different DAOs and MAKER cores.
The processing includes community management, product development and legal compliance.

Different DAO structure

List of subdao

4.2.3 Risk isolation:

MakerDao’s Endgame manages risks through a clearly defined operation and governance structure, which maintains the consistency of the MAKER ecosystem.This structure summarizes the role of MKR holders, Maker Core and Subdaos, and focuses on the management of capital flow and asset allocation.MKR holders, especially Aligned Delegates, are very important in setting governance practice. These practice ensure the unity and consistency of decision -making in the entire ecosystem.

Maker Core implements these governance decisions by guiding capital to AlloCator Vaults in the established risk parameters.This process helps to ensure that capital management will not be excessively concentrated, and to diversify capital dispersion through cooperation with Arrangers, therebyReduce financial risks.

By introducing the Subdao governance tokens, MKR is in a more secure position. It only needs to intervene in a major turbulence that cannot be solved by Subdao to the token itself (for example, huge decourse).And Subdao has become a firewall between actual business and Maker Core.

Source: Steakhouse

4.3 Different stages:

Such narratives are undoubtedly unprecedentedly magnificent, and this process will be divided into four stages.

Is it annoying: Is it the beginning of the new era or the new bottle of old wine?

Token economics:The transformation of MKR tokens needs to be reviewed more carefully.The plan is planned to be mortgage and allows governance to participate in the transaction of transactions through zero interest rate loans to introduce risk factors.In addition, the proposed annual inflation rate is about 6%, which may have unpredictable consequences on the value of tokens.
Is it simpler or more complicated:Although the detailed plan of MakerDao’s ultimate strategy shows a thoughtful evolution plan, it also shows a significant disadvantage.Although it is far -sized to make Maker Core, it seems thatExcessive emphasis on long -term goals and ignore immediately actual actions, leading to a gap between strategic plans and current implementationEssenceIn addition, changes in the governance structure introduced another layer of complexity, allowing participants to question whether this new method simplifies the system, or to make the system more complicated in another way.
After the brand reshapes, the business nature has not changed:Despite changes in the operating structure, MakerDao still insists on its familiar encryption borrowing business field, especially extended to the Spark protocol.Similarly, its business has not changed in the short term in RWA.This triggered doubts about business innovation, because the plan did not explain the future projects in detail.It leaves a large part of the route diagram to people imagine, indicating that the strategy is to improve existing operations, rather than exploring unknown business ways.At least at the current stage, its business is still concentrated on DEFI borrowing/borrowing and RWA.Therefore, we cannot judge whether the launch of this ultimate plan is just a brand reshaping or really bring more value.
Is it more risky or safer:Subdaos has become a firewall between Maker Core and actual business.But at the same time, Maker took more adventurous measures.The market’s view of Makerdao has transformed from being regarded as a stable central bank into a entity that is more and more risky in order to maintain competitiveness.This change in concept reflects the re -evaluation of DAI risks, leading to the re -pricing of MKR, which keeps it consistent with a wider market trend.This transformation emphasizes the subtle balance between MakerDao in innovation and maintenance of basic stability.

in conclusion

MakerDao’s outstanding performance in the past year proves its stable all -weather business model, which is good at dealing with the crypto market with large volatility.It uses RWA’s strategic transformation during a high interest rate period and the focus of focusing on the encryption market during market rising, highlighting its commercial acuity beyond other blue chip tokens.With an unparalleled revenue capabilities -about $ 230 million in revenue each year -MakerDao is at the peak of financial efficiency in the DEFI field.

Promoted by positive market emotions, and the expansion of MakerDao’s valuation expansion highlights its potential for the growth rate of P/E ratio (P/E).The proposal of the MakerDao Endgame roadmap has further promoted this momentum, indicating a more bright future.

However, Endgame’s vision is not without challenges.The key to success is to find the subtle balance between innovation and rigorous risk management, especially when MKR enters the mortgage roleEssenceImplementing such a magnificent complexity requires excellent communication to ensure the recognition of stakeholders.

Although Endgame introduces a simplified operation mode, itDid not deviate from the core nature of MakerDaoEssenceOf course, considering that its business model is undoubtedly one of the best, commercial transformation may not be necessary.It aims to strengthen and expand the established business framework, rather than exploring new venture capital in the short term.

Looking forward to the future, can MakerDao relieve these concerns and andShowing Endgame’s actual benefits will be the key.Effective execution may further consolidate its leadership position in the DEFI field, showing a stronger and user -centric platform to prepare dynamic changes in the encrypted world.

The final measure of Endgame’s success will be its impact -whether it can realize the promise, enrich the benefits of the benefits, and maintain the status of MAKERDAO as the lighthouse of the toughness and innovation of the lighthouse as the decentralized financial sector?At least now, the launch of this plan has no harm to it, the division of labor in each role is more clear, increasing the professionalism of each region, and at the same time isolate some risks.Perhaps this is just the end of the prelude, and competition between large DEFI projects will be even more intense.Only time to tell us the answer, but the previous journey is undoubtedly full of hope.