The recent collapse of Terra's UST has forced investors to seek truly "stable" dollar-pegged assets, bringing MakerDAO back into the spotlight. Amidst a challenging period for the crypto market, MakerDAO (MKR) has turned crisis into opportunity, with its decentralized stablecoin DAI regaining attention.
Key Factors Driving MKR's Recovery
DAI's Stability During Market Turmoil
- DAI maintained its dollar peg despite extreme volatility, while other stablecoins faltered.
- Price fluctuated narrowly between $0.9961 and $1.0046 during peak turbulence.
- Supply reduced by over 2.2 billion, yet stability remained intact.
Real-World Adoption
- Case Study: A MakerDAO vault funded the shipment of Australian beef, leveraging Centrifuge to mint DAI for trade financing.
- Innovation: An NFT tracked cargo/invoice data, with Mastercard’s Provenance solution ensuring transparency.
- Highlighted use cases for blockchain in supply chains.
Staked ETH as Collateral
- Integration of sETH2 allows stakers to access locked funds for DeFi yields.
- Boosted MakerDAO’s Total Value Locked (TVL) to rank #1 among DeFi protocols post-UST collapse.
Market Performance
- MKR surged 66.2% (from $952 to $1,587) between May 12–16.
- TVL in competitor Curve dropped from $19.3B to $8.7B during the same period.
👉 Explore how MakerDAO’s innovations are reshaping DeFi
FAQs
Q: Why did DAI remain stable while USDT depegged?
A: DAI’s overcollateralization model and decentralized governance ensured resilience against market shocks.
Q: How does staked ETH benefit MakerDAO?
A: It diversifies collateral options, attracting liquidity from Ethereum stakers.
Q: What real-world applications does MakerDAO have?
A: From beef exports to invoice tracking, it bridges DeFi with traditional trade finance.