MakerDAO: How RWA holdings contributed to profits amidst stablecoin saga
The stablecoin market faced a significant challenge as USD Coin [USDC] came under scrutiny. MakerDAO, the protocol behind stablecoin DAI, also felt the impact. But despite this, MakerDAO saw profits, thanks to its RWA holdings.
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According to data provided by Delphi Digital, MakerDAO made a $3.8 million profit through its RWA holdings. These holdings contribute significantly to MakerDAO’s overall earnings, making up 11.6% of its total holdings. Real World Asset (RWA) is a type of collateral that is not cryptocurrency-based but is more traditional and tangible, such as U.S. Treasury Bills and Bonds.
<p lang=«en» dir=«ltr» xml:lang=«en»>.@MakerDAO has profited $3.8M through their investments in U.S. short-term treasuries. pic.twitter.com/q10AkGxLn8— Delphi Digital (@Delphi_Digital) March 15, 2023
However, MakerDAO’s PnL statement painted a negative outlook due to high expenses on upgrades and updates. A significant portion of MakerDAO’s earnings are possibly being spent on upgrading and maintaining the protocol. These expenses outweighed their earnings, leading to a net loss for MakerDAO.
Source: Dune Analytics
Nonetheless, MakerDAO’s recent proposal to create PSM circuit breakers shows its dedication to improving its protocols, considering the market’s volatility. This proposal will allow Maker governance to disable a PSM immediately without governance delay. This step will ensure that the protocol can react quickly to market changes and maintain stability.
The state of the protocol was relatively healthy as the volume on MakerDAO increased by 55% over the past month. This shows that despite the challenges faced by the stablecoin market, MakerDAO has maintained its
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