MakerDAOs' annualized revenue nearing $150 million - the impact of expanding beyond crypto
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Whilst most decentralized finance protocols experience terrible investment turnovers as global economic crisis rain bears on crypto markets, MakerDAO is steadily building towards sustainability with real world assets.
According to reports on cryptopotato the stablecoin issuer and decentralized finance protocol MakerDAO has added $100 million worth of Real-World Assets (RWAs) via BlockTower Andromeda over the last two days. These funds were reportedly predominantly allocated to short-term US Treasury bonds offering an attractive annual yield of 4.5%.
So far, the stablecoin issuer, known for being the largest decentralized stablecoin protocol currently holds approximately $2.7 billion in Real World Assets(RWA).
MakerDAOs expansion to real world investments comes in the wake of a necessity to expand crypto's value generating stream, a move not many crypto protocols or projects seem to be mirroring.
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The stagnation of crypto projects
Crypto projects and protocols want to take over the world, the all collectively build and wait on mass adoption but tend to do very little outside their bubble, mass adoption is definitely far from them.
Traditionally, marketing is an essential part of every business, but we see most crypto projects doing very little of it and the few that do it fail to carefully study the marketing mix.
An essential part of marketing for a project looking to attract the banking users and the unbanked, the most important of that marketing should involve outdoor initiatives.
Most crypto projects just focus on taking a cut from the already very small pie of crypto users, making it increasingly profitless, especially on the long wrong.
The Need and Effects of Expansion
Crypto has lived in its little bubble where everyone mostly kicked against anything that seemed similar to traditional business and finance structures.
The concept of advertising, investment in physical assets, localized marketing, development of labour market and so on. But as time passes, it has become evident that crypto's aim should never been to neglect these business and finance structures that have proven to be functional and highly profitable over the years.
Crypto's mission at the very basics is to eradicate the centralization of finance, not to throw all traditional finance and business development ideas out the window.
These previously stuck-to ideas of what crypto should be has limited the industry to an extent, though not often discussed but it is now obvious that product and service developers need to take a step forward - outside the crypto bubble if their goal is essentially to grow, growth will be realized when external value structures have been established.
MakerDAO has proven this recently and their goal ultimately is to attain network-wide sustainability that is resilient to market turmoils.
The latest acquisition is part of MakerDAO’s “Endgame Plan,” introduced by co-founder Rune Christensen last year. Over three years, DAI will maintain its peg to the dollar, during which the protocol will intensify its focus on RWA, aiming to acquire more Ether and thereby enhance the ratio of decentralized collateral.
The main aim is to diversify the assets backing the $5.3 billion dollar-pegged stablecoin by ramping up the role of traditional financial assets such as government bonds in the reserve.
“The Endgame Plan is a proposal to overhaul and improve the governance and tokenomics of the Maker Ecosystem. Its primary aim is for the ecosystem to reach a self-sustainable equilibrium called the Endgame State. In this state, the ecosystem is resilient, and the scope and complexity of Maker Core will no longer change.” - Cryptopotato report
Is it time to buy Maker?
The report reveals that MakerDAOs' daily earnings went from $31,300 daily to $333,555, placing the protocol on a 10x growth level with 70-80% of its revenue coming from real world assets.
This is a wake up call for all crypto projects out there. The crypto pie is already too small, no need to keep competing for it, it's time to look outside and make this ecosystem sustainable.
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