MakerDAO

MakerDAO is a DAO (governed through the MKR token) that manages the Maker Protocol. 

Developed on the Ethereum blockchain, the Maker Protocol allows users to place their funds (through cryptocurrency) as collateral in exchange for its stablecoin DAI, which is pegged to the USD. DAI can be used like any other cryptocurrency and even as savings since holders of DAI are entitled to a return based on the DAI Savings Rate (DSR). The DSR is determined by members of the DAO using a mix of public and proprietary market data. In October 2022, MakerDAO passed a proposal to separate its DAO into multiple self-sustaining units called MetaDAOs. These DAOs will be separate from Maker’s broader governance system and will have their own community and token.

MakerDAO offers access to investing and borrowing DAI through the Oasis app, developed by some of the creators of Maker Protocol. In addition, the Maker Protocol is available for developers of DeFi apps, who can build apps to facilitate earning, investing, and borrowing DAI. As of December 2021, the Maker Protocol integrated with over 400 applications, ranging from payments systems to gaming platforms. MakerDAO generates revenue through stability fees (akin to interest payment on borrowed DAI) and liquidation fees, which is an additional charge that occurs when the value of the submitted collateral falls below a set liquidation amount.

In April 2022, MakerDAO announced that it was bridging to StarkNet, a reportedly cheaper and faster zero-knowledge (ZK) overlay chain built by StarkWare. Along with its expansion on Ethereum, the DAO plans to move toward a multi-chain offering with this rebuild. It plans to roll-out this offering in 4 phases, beginning with a simple bridge between the main blockchain and StarkNet’s Layer 2.  

In February 2023, the company launched a new lending platform named Spark Protocol, to enable users to borrow, lend, and stake DAI, the protocol’s stablecoin. The platform, which is a fork of Aave's version 3 (v3), will be built by Phoenix Labs, a research and development company formed by the DAO. Additionally, the company also announced deployment of etherDAI, a liquid staking derivative for Ethereum that will be pegged to the value of ETH. Furthermore, in March, MakerDAO went on to approve a number of new proposals that make changes to both its governance structure and the investment of its treasury. These changes divide the DAO’s current structure into smaller self-governed and self-sustained units named SubDAOs, which will also have their own tokens in the MakerDAO ecosystem. Moreover, the proposal also planned to increase the protocol’s revenues by investing a part of its reserves (worth USD 7 billion) into real-world assets and money-market funds.

Funding and financials

As of April 2022, MakerDAO had around USD 13.7 billion in total value locked (TVL).The company’s most recent funding round was in April 2020 for an undisclosed sum. Previously, the company raised USD 27.5 million through the sale of its MKR token to Dragonfly Partners and Paragon to expand its operations to Asia.