MakerDAO reported earnings of more than $2.8 million through its real-world assets. The revenue generated by the protocol grew alongside an increasing interest in the MKR token.

MakerDAO [MKR], the protocol that reigned supreme in the DeFi space in terms of TVL, lost its place to Lido on Jan. 3. However, the Protocol remained undaunted and continued to build and invest funds to grow the DAO.

Read MakerDAOs [MKR] Price forecast 2023-2024

According to recent data, MakerDAO reported a profit of more than $2.8 million from its recent investments.

Peek into the MakerDAO vault

MIP65, also known as Monetalis Clydesdale, is a vault on the protocol that deploys MakerDAO capital to invest in short-term bonds and ETFs. MakerDAO has staked approximately $500 million in USDC in various short-term bonds through the MIP65.

The vault has mainly invested in two commodities: IB01 and IBTA. IB01 is a tracker for one-year US Treasuries and IBTA is a one- to three-year US Treasury tracker. At the time of writing, most of the vault funds were deployed in IB01, which accounted for approximately 69.8% of total vault investments.

Source: Dune analysis

In addition to the investments in these bonds, MakerDAO was observed to allocate its resources to other real-world assets as well.

For example, MakerDAO opened a $100 million DAI loan to Huntington Valley Bank and also on board euro-dominated covered bonds during the past month.

Source: Dune analysis

These investments proved to pay off as the revenue generated by the protocol continued to increase over the past three months, according to data from Dune Analytics. Real world assets contributed the most to sales. Other major sources of income for MakerDAO were their investments in Ethereum and Stablecoins.

However, the revenue collected through users of the protocol may decrease in the near future. This is because the number of unique users on the protocol has decreased by 54.57%, according to data from Messari.

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Looking at the data

While the number of unique users on the protocol declined, interest in the MKR token increased over the past week.

Based on data from Santiment, MKR volume was observed to grow from 14 million to 38.6 million in the past seven days. The price of MKR also paralleled that growth. However, despite the rising prices of MKR, the MVRV ratio for the token remained negative.

This implied that the holders of the MKR token would have to wait for the price to rise even further if they wanted to sell their holdings for a profit.

Source: Sentiment





This post Assessment of the current status of MakerDAO for long-term MKR holders

was published first on https://ambcrypto.com/the-current-status-of-makerdao-tells-us-this-about-the-rest-of-2023/

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