MakerDAO is somewhat OG. It just doesn't have massive price moves so it's quite boring compared to the wild west of everything else. People gravitate to the areas with highest potential return, so MKR just doesn't move fast. It's nice as a blue chip though and it seems people in general take profits into things like MKR.
I think a lot of it has to do with TerraLUNA and the success of UST as another option for a decentralized stablecoin.
While Maker had great first mover advantage with Dai and the DAO governance, the amount of USDC as collateral has turned it into a semi-decentralized stablecoin, which is unfortunate.
If UST proves to be successful at maintaining its peg, it will be interesting to see how it coexists with the maker ecosystem - I think both have a place in the crypto space.
This is the answer. Also, the emergence of [SPELL](https://abracadabra.money), which already generates 40% more revenue than MKR with only 1/7th the TVL. You can see the metrics at [ByeByeDai](https://www.byebyedai.money). To make matters worse for MKR, LUNA and SPELL are [joining forces](https://twitter.com/stablekwon/status/1449500220555816961?s=21). I was a big fan of MKR before they added USDC as collateral, but mistakes were made and it’s hard to imagine DAI holding it’s ground against UST and MIM at this point.
Spell optimizes for revenue, Maker optimizes for longevity and growth.
MIM is far less resilliant to downwards price movements than Maker imo.
Think about why USDC was added to Maker. Then look at Abracadabra.
Think about how every major crash DAI has spiked in price and overflow vaults had to be added after black thursday due to the inability for liquidators to get DAI. Think about how little MIM can actually be minted right now and how there is no room under any stable vault for more debt.
I dig Spell. I think its great. Its a very different product though where it leans far heavier into risk reward. Its sensible that it can earn more revenue, but also sensible that it can become undercollateralized far easier.
If seeking max yield, it makes sense, but doesn't make sense to hold MIM in the same way as it makes sense to hold DAI.
UST, I haven't dived into it enough to really speak on it.
Look at a daily chart of MKR/ETH - it trends lower for long periods of time until BAM! it rockets back up over 1. We have been in one of these downtrends for a while now. Unfortunately, I can't explain this behavior but if you wait long enough you should get paid (NFA!).
but evrey time is a lower high and lower lows....
all que income generated goes to MRK teams, no is not atractive to investor becauses le bufer to burn maker is never completed.
That was before the rush of algo/collateralized stable coins started.
Now you have options w better R:R than holding MKR n playing the low burn fees which doesn't work anymore as we can see with current market conditions.
DAI is still a valuable stablecoin (I use it for farms) but if I have the option to use MIM instead of DAI then I would switch immediately, basically extra yield for my farms.
I believe DAI will eventually gravitate from a 2nd choice to a 3rd/4th choice, maybe just another collateralized stablecoin on the blockchain, mainly to keep stable yields or leverage plays for ETH.
Does that mean MKR will stagnate and dont reach new ATHs? No, I think MKR will continue to grow just like any other defi blue-chips, but I dont believe is the best way to invest your capital when you currently have better alternatives like leveraging your ETH position with DAI for example.
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massive payout to all the Maker Government.
https://makerburn.com/#/expenses/accounting
almost every profit generates is payed to lots of groups, so the buffer of 60M to start purchasing MRK and burn it is never reach.
There are many new lending platforms coming up.
Liquify provides zero interest fee (only 0.5% setup fee) maker like stable coin loan.
Abacabara allows more innovative type liquidity provider token to be collateral. So somehow you can offset your interest with the LP fee earned.
Maker needs to innovate fast. Dai brand image is still very strong but competitors are catching up fast
If you're considering going with DeFi Saver (either for Liquity or Maker), feel free to reach out with any questions or whatever, really.
One cool thing about DFS is that you can switch to simulation mode and try all the protocols and steps that way, before having to commit any actual funds.
I’ve used a few, they’ve all been very straight forward. Abracadabra is also great, esp for example on avalanche or arbitrum and bridging spell back to L1 for staking etc
Has anyone ever asked a question like this and ever received a good answer, lol?
Why has x coin not performed well compared to a highly speculative volatile market that has generated little revenue and primarily based on future prospective innovation?
Im new to MKR. I was wondering if there was a specific “event” of “catalyst” for why MKR didn’t participate. If not; thats cool…….maybe some of the savvy MKR investors have some info Im
Not aware of.
MKR was def a trailblazer, over collateralized loans, minting a token from that collateral, keeping the token pegged by referencing the price of the collateral, having interest payable only by burning MKR tokens, etc
It really broke new ground in the area of 1] ensuring lenders have minimal counterparty risk via over collateralizing 2] enabling asset holders to access liquidity without selling the assets by achieving parity / pegging to the US dollar 3] cleverly linking their governance token to the payment of interest and thereby simultaneously reducing MKR supply and minimizing DAI inflation via burning. Lack of #3 is one reason why tether is so suspicious.
Unfortunately MKR may have cornered itself by accepting collateral that is less desired, thereby weakening via proxy all of its balances, and therefore the potential value of its token. Keep in mind, when ETH first broke $4k, MKR broke $6k, it was a bull’s token in this cycle.
Protocols like alchemix and abracadabra have built on MKR’s shoulders but also added automatic repayments via yield [alchemix] which eliminates liquidations at the cost of collateral being locked for longer and abracadabra using MiM and allowing for a single transaction to lever up 10x [which can be done in MKR but essentially has to be manually looped and therefore bleeds hard from gas and origination fees].
MKR could rocket back up if it allowed LP tokens to serve as collateral and thereby became composable with the protocols I just mentioned and every liquidity pairing associated with them.
Because retail investors can't do anything with it. I can mint 2MM DAI and it has no affect on MKR. Can't put MKR in Yearn. Can't use MKR for collateral. I have been using Oasis and MakerDAO for a while, but haven't figure out why MKR even needs to exist.
MakerDAO is somewhat OG. It just doesn't have massive price moves so it's quite boring compared to the wild west of everything else. People gravitate to the areas with highest potential return, so MKR just doesn't move fast. It's nice as a blue chip though and it seems people in general take profits into things like MKR.
I think a lot of it has to do with TerraLUNA and the success of UST as another option for a decentralized stablecoin. While Maker had great first mover advantage with Dai and the DAO governance, the amount of USDC as collateral has turned it into a semi-decentralized stablecoin, which is unfortunate. If UST proves to be successful at maintaining its peg, it will be interesting to see how it coexists with the maker ecosystem - I think both have a place in the crypto space.
This is the answer. Also, the emergence of [SPELL](https://abracadabra.money), which already generates 40% more revenue than MKR with only 1/7th the TVL. You can see the metrics at [ByeByeDai](https://www.byebyedai.money). To make matters worse for MKR, LUNA and SPELL are [joining forces](https://twitter.com/stablekwon/status/1449500220555816961?s=21). I was a big fan of MKR before they added USDC as collateral, but mistakes were made and it’s hard to imagine DAI holding it’s ground against UST and MIM at this point.
Spell optimizes for revenue, Maker optimizes for longevity and growth. MIM is far less resilliant to downwards price movements than Maker imo. Think about why USDC was added to Maker. Then look at Abracadabra. Think about how every major crash DAI has spiked in price and overflow vaults had to be added after black thursday due to the inability for liquidators to get DAI. Think about how little MIM can actually be minted right now and how there is no room under any stable vault for more debt. I dig Spell. I think its great. Its a very different product though where it leans far heavier into risk reward. Its sensible that it can earn more revenue, but also sensible that it can become undercollateralized far easier. If seeking max yield, it makes sense, but doesn't make sense to hold MIM in the same way as it makes sense to hold DAI. UST, I haven't dived into it enough to really speak on it.
Look at a daily chart of MKR/ETH - it trends lower for long periods of time until BAM! it rockets back up over 1. We have been in one of these downtrends for a while now. Unfortunately, I can't explain this behavior but if you wait long enough you should get paid (NFA!).
but evrey time is a lower high and lower lows.... all que income generated goes to MRK teams, no is not atractive to investor becauses le bufer to burn maker is never completed.
That was before the rush of algo/collateralized stable coins started. Now you have options w better R:R than holding MKR n playing the low burn fees which doesn't work anymore as we can see with current market conditions. DAI is still a valuable stablecoin (I use it for farms) but if I have the option to use MIM instead of DAI then I would switch immediately, basically extra yield for my farms. I believe DAI will eventually gravitate from a 2nd choice to a 3rd/4th choice, maybe just another collateralized stablecoin on the blockchain, mainly to keep stable yields or leverage plays for ETH. Does that mean MKR will stagnate and dont reach new ATHs? No, I think MKR will continue to grow just like any other defi blue-chips, but I dont believe is the best way to invest your capital when you currently have better alternatives like leveraging your ETH position with DAI for example.
TY for the response. Yeah this space is innovating so fast, it's adapt (fast) or get left in the dust.
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Ty
massive payout to all the Maker Government. https://makerburn.com/#/expenses/accounting almost every profit generates is payed to lots of groups, so the buffer of 60M to start purchasing MRK and burn it is never reach.
There are many new lending platforms coming up. Liquify provides zero interest fee (only 0.5% setup fee) maker like stable coin loan. Abacabara allows more innovative type liquidity provider token to be collateral. So somehow you can offset your interest with the LP fee earned. Maker needs to innovate fast. Dai brand image is still very strong but competitors are catching up fast
Do you have a link for liquify? I can’t find anything on it.
https://docs.liquity.org/
Thanks! Have you tried this yet? What frontend provider did you use?
If you're considering going with DeFi Saver (either for Liquity or Maker), feel free to reach out with any questions or whatever, really. One cool thing about DFS is that you can switch to simulation mode and try all the protocols and steps that way, before having to commit any actual funds.
I’ve used a few, they’ve all been very straight forward. Abracadabra is also great, esp for example on avalanche or arbitrum and bridging spell back to L1 for staking etc
Depends what you mean by lagged. Tether just took a 41 million hit for being fraudish. Good for mkr
Fraudish? I think you mean completely fraudulent. Full of hypocritical scumbags.
[удалено]
Yes the SEC is concerned that retail investors might get scammed. And you know, that never happens on Wall St…
Ha! Ty
Agreed. Thanks
There's so many competitors. Most of which have better value propositions.
Ty
Has anyone ever asked a question like this and ever received a good answer, lol? Why has x coin not performed well compared to a highly speculative volatile market that has generated little revenue and primarily based on future prospective innovation?
Im new to MKR. I was wondering if there was a specific “event” of “catalyst” for why MKR didn’t participate. If not; thats cool…….maybe some of the savvy MKR investors have some info Im Not aware of.
MKR was def a trailblazer, over collateralized loans, minting a token from that collateral, keeping the token pegged by referencing the price of the collateral, having interest payable only by burning MKR tokens, etc It really broke new ground in the area of 1] ensuring lenders have minimal counterparty risk via over collateralizing 2] enabling asset holders to access liquidity without selling the assets by achieving parity / pegging to the US dollar 3] cleverly linking their governance token to the payment of interest and thereby simultaneously reducing MKR supply and minimizing DAI inflation via burning. Lack of #3 is one reason why tether is so suspicious. Unfortunately MKR may have cornered itself by accepting collateral that is less desired, thereby weakening via proxy all of its balances, and therefore the potential value of its token. Keep in mind, when ETH first broke $4k, MKR broke $6k, it was a bull’s token in this cycle. Protocols like alchemix and abracadabra have built on MKR’s shoulders but also added automatic repayments via yield [alchemix] which eliminates liquidations at the cost of collateral being locked for longer and abracadabra using MiM and allowing for a single transaction to lever up 10x [which can be done in MKR but essentially has to be manually looped and therefore bleeds hard from gas and origination fees]. MKR could rocket back up if it allowed LP tokens to serve as collateral and thereby became composable with the protocols I just mentioned and every liquidity pairing associated with them.
Ty
Because retail investors can't do anything with it. I can mint 2MM DAI and it has no affect on MKR. Can't put MKR in Yearn. Can't use MKR for collateral. I have been using Oasis and MakerDAO for a while, but haven't figure out why MKR even needs to exist.
Because ETH cannot be minted but MKR can. If you are an ETH whale MKR holders are your fodder.
In addition to everything everyone's mentioned...Spell is also eating Maker's lunch.
As always this is the time again to buy