MakerDAO is proposing a $100 million USDC move, with a 2% annual return. Unique users on MakerDAO decline and whales begin to lose interest in the token.
MakerDAO recently proposed to include USDC worth $100 million in an on-chain vault from iearnfinance. This move would bring MakerDAO an estimated return of 2% per year, according to the proposal.
According to the proposal, one of the reasons for this decision was that Yearn Vault’s strategies are risk-adjusted and transparent at all times, giving MakerDAO a safe and reliable way to earn stable returns on its assets.
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Take a look at the assets
One of the main factors that make this proposal noteworthy is MakerDAO’s current asset allocation. At the time of writing, stablecoins make up a large portion of MakerDAO’s assets.
Based on data from Dune Analytics, stablecoins make up 70.7% of total assets held by MakerDAO, with Ethereum making up 15% and real assets (RWA) 12% of total assets.
While RWA make up a relatively small percentage of total assets, they have been a major contributor to the total revenue generated by MakerDAO. At press time, RWA was responsible for 56.9% of the total revenue generated by MakerDAO.
In fact, real-world assets helped MakerDAO grow its revenue by 3.09% last month, despite a decline in unique users. According to Messari, the number of unique users using the MakerDAO protocol has decreased by 23.16% in the past month.
Whales swim away
This decline in user interest has also affected the status of the MKR token. According to data from Santiment, the percentage of MKR owned by major addresses declined, suggesting that whales are beginning to lose interest in MKR despite rising prices.
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This decline in user and whale interest, as well as a decline in network growth, could mean a potential decline in overall interest in the MKR token. However, there are factors that suggest a change for MKR in the future.
For example, development activity on MKR witnessed a surge, suggesting that new updates and upgrades to MakerDAO could be on the way. This spike in development activity could potentially rekindle whale interest and new addresses and help drive the growth of the MakerDAO protocol in the future.
While the future of MakerDAO and the MKR token remains uncertain, it is clear that the protocol is actively working to improve and adapt to changing market conditions.
This post MakerDAO plans to make a $100 million move under this new proposal
was published first on https://ambcrypto.com/makerdao-plans-to-make-a-100-million-move-according-to-this-new-proposal/