Long-term value underestimated? Maker DAO shows potential for a hundredfold return again!

In the field of decentralized finance, MakerDAO has always been a remarkable presence.
As a leader in DeFi, MakerDAO's recent developments have been rapid. According to data from Token Terminal, MakerDAO's revenue reached a historic high of $85 million in the second quarter of 2023, reflecting its enormous market appeal and the effectiveness of its business model.
Notably, MakerDAO's DAI supply increased by nearly $1 billion in just two months, rising from $4.4 billion to $5.4 billion. This growth is attributed to its decisions to adjust stability fees, annual percentage yield (APY) for DAI loans, and increase the DAI savings rate (DSR) on the SparkLend platform. This not only boosted the circulation and usage of DAI but also made it the largest on-chain stablecoin by monthly trading volume, with April's trading volume setting a new record of $636.72 billion.
Additionally, the trend of tokenizing real-world assets (RWAs) is gradually gaining momentum.
The following content will delve into how MakerDAO leverages its core technology and strategic deployment to maintain and expand its leadership position in the DeFi space, and what all of this means for the cryptocurrency market.

01
The Weight of the DeFi Crown
Since its inception, MakerDAO has been a pioneer of innovation in decentralized finance (DeFi).
Since its launch in 2021, MakerDAO has continuously developed its protocol, focusing on enhancing the usability of the DAI stablecoin and its integration with real-world assets (RWAs). The infrastructure updates of MakerDAO particularly emphasize transparency and user control, utilizing advanced blockchain technology to ensure data integrity and access security.
In 2022, MakerDAO launched an updated version of its Multi-Collateral DAI (MCD) system, which expanded its functionality through a hybrid architecture (EVM-compatible and other blockchain technologies), allowing for more efficient management and issuance of DAI on-chain.
Moreover, this version introduced a series of RWA protocols, enabling users to use non-digital assets as collateral, thereby increasing the backing and liquidity of DAI.
Entering 2023, MakerDAO announced further upgrade plans, expected to complete deployments across multiple EVM-compatible networks in the coming months. The core of this plan is to transform the MakerDAO platform into a full-chain financing protocol, with key components including: a more advanced DAI stability module, a censorship-resistant database for recording user transactions and financial activities, and a brand-new multi-chain bridging solution to facilitate the free circulation of DAI across various blockchain networks.
Notably, MakerDAO's smart contract framework is also continuously being optimized to lower the operational threshold for users, allowing non-professional users to easily participate in DeFi activities. Among these, the increase in the DAI savings rate (DSR) allows users to earn interest on deposits, further enhancing the appeal of DAI.
Additionally, MakerDAO is strengthening its support for the creator economy by enhancing support for the ERC-1155 standard in version 3, reducing transaction costs and providing users with more flexibility and efficiency.
Overall, these technological upgrades and market expansion strategies from the MakerDAO team not only reinforce its leadership position in the DeFi space but also provide new momentum for the development of the entire cryptocurrency market.

02
Strong Profitability
MakerDAO continues to lead in the decentralized finance space, with its latest financial data and market performance further showcasing its stability and growth potential. 2023 has been a record-breaking year for MakerDAO, with second-quarter revenue reaching $85 million, demonstrating strong profitability.
In terms of asset allocation, MakerDAO's strategy focuses on enhancing its asset diversity and growth strength. In 2023, its real-world assets (RWA) performed particularly well, increasing from approximately $198 million at the beginning of the year to $244 million by year-end. Additionally, MakerDAO's performance in the stablecoin and crypto lending markets also shows a trend of sustained growth.
Regarding liabilities, MakerDAO has demonstrated robust management and optimization. The DAI stablecoin, as its primary form of liability, slightly decreased from $922 million to $846 million over the past year, reflecting market fluctuations and adjustments in capital management strategies.
Furthermore, in terms of MKR burning and repurchase, MakerDAO has adopted proactive strategies to reduce circulating supply and enhance token value. The dynamics of burning show that MKR continues to decrease in the market, reflecting its commitment to enhancing intrinsic value and returning value to shareholders.

The price comparison between MKR and ETH shows that although MKR has experienced volatility over the past few years, it has consistently maintained strong performance compared to ETH, indicating that investor confidence in MakerDAO remains steadfast.

03
Opening the DeFi Gateway for Traditional Assets
As the DeFi space rapidly expands, MakerDAO continuously explores new multi-chain strategies to enhance the popularity and application of the DAI stablecoin.
MakerDAO's multi-chain integration plan particularly focuses on achieving seamless trading and management of DAI across different blockchain platforms, ensuring that users can easily access its services globally.
In a recent major update, MakerDAO launched a series of tools and protocols that extend beyond Ethereum to support other EVM-compatible chains, such as Binance Smart Chain and Polygon. These new deployment strategies aim to provide lower transaction fees and faster processing speeds, thereby attracting a broader user base.
Moreover, MakerDAO is actively exploring integration with the real economy, especially through connections with real-world assets (RWAs). By linking with traditional financial assets such as government bonds and real estate, MakerDAO not only enhances the capital security of DAI but also provides users with diversified investment options. This strategy not only promotes the liquidity of tokenized assets but also provides a bridge for traditional assets to enter the DeFi world.
In terms of technical implementation, MakerDAO employs advanced smart contracts and automation strategies to ensure that all assets and transactions occur in a decentralized and secure environment. For example, its latest smart contract platform includes automated risk assessment tools and liquidation mechanisms, which effectively prevent system overload and potential financial risks.
Conclusion
As a leader in the decentralized finance space, MakerDAO's continuously iterating protocols and robust financial management strategies highlight its competitive advantage in the DeFi market. By expanding its asset portfolio, optimizing its liability structure, and actively repurchasing and burning MKR, MakerDAO not only strengthens its market position but also provides significant value to investors and protocol users.
However, despite its impressive performance and strategies, MakerDAO and the entire DeFi industry still face a series of challenges, including regulatory uncertainties, market volatility, and integration issues within the broader financial ecosystem.
At the same time, the current threshold of MakerDAO effectively excludes a large number of retail investors, which is a systemic issue that is difficult to overcome in the short term. MakerDAO must continuously explore product iterations and strive to minimize user thresholds while ensuring safety and compliance, truly realizing the inclusiveness of financial services. This is crucial for the long-term development prospects of the entire token system.