- MakerDAO had a system surplus at press time, indicating that the full debt owed was no more than the worth of the collateral within the system
- Its displacement by Lido is likely to be momentary as a consequence of its slipping grip on the ETH staking market
Main decentralized finance protocol (DeFi) MakerDao [MKR] provided customers with an outline of its present state in 2023. The DeFi protocol took to Twitter on 2 January to highlighted the quantity of DAI tokens it had in circulation and its complete worth locked (TVL).
The tweet additionally highlighted MakerDAO’s collateralization ratio and the variety of DAI tokens it held as System Surplus till the tweet went stay.
How 2023 began
• 5.7 billion DAI in circulation.
• $7.2 billion of complete worth locked.
• 141% collateralization ratio.
• 74.9 million DAI within the System Surplus.
Let’s go! pic.twitter.com/VIDn06Kguy
— Maker (@MakerDAO) January 2, 2023
Learn MakerDAO’s [MKR] Value Prediction 2023-2024
In line with MakerDAO, the present circulating provide of its DAI stablecoin was 5.7 billion. This put it 4 locations behind different stablecoins, together with Tether [USDT], USD Coin [USDC], and Binance USD [BUSD], knowledge from CoinMarketCap revealed.
Supply: CoinMarketCap
MakerDAO additionally confirmed that its present collateralization ratio stood at 141%. Collateralization ratio refers back to the quantity of collateral {that a} borrower has pledged to safe a mortgage.
Within the context of MakerDAO, the collateralization ratio represents the worth of the collateral (often ETH, BAT, and USDC) relative to the worth of the debt (DAI).
Because of this the worth of the collateral should be not less than 141% of the worth of the debt. This excessive collateralization requirement is in place to guard the system’s stability and be sure that debtors have adequate collateral to cowl their money owed.
Additional, MakerDAO acknowledged that it held 74.9 million DAI in its System Surplus till the time of the tweet. The system surplus is a vital measure of the general well being and stability of the MakerDAO system.
A surplus signifies that the system is ready to stand up to shocks or declines within the worth of the collateral because it measures the distinction between the worth of the collateral within the system and the full debt owed.
MakerDAO dethroned by Lido, however for the way lengthy?
Through the intraday buying and selling session on 2 January, the TVL of main liquid ETH staking platform Lido Finance exceeded that of MakerDAO. Thus, Lido managed to displace Maker because the DeFi protocol with the very best TVL.
Until the time of press, MakerDAO’s TVL was noticed at $5.92 billion, in second place behind Lido’s $5.97 billion.
Supply: DefiLlama
In line with knowledge from Dune Analytics, as extra choices for staking Ether turn out to be accessible, Lido Finance’s place as a pacesetter out there could also be in danger.
Lido’s market share within the ETH staking ecosystem decreased barely in the beginning of the 2023 buying and selling yr. This was pegged at 29% at press time and had been constantly declining since Could 2022.
Are your MKR holdings flashing inexperienced? Verify the revenue calculator
With a persistent decline in Lido’s share of the ETH staking market, a corresponding fall in its TVL because the yr progresses may result in MakerDAO’s return to its preliminary spot.
Supply: Dune Analytics
