"MakerDAO" TAG

Algorithmic Stablecoins: Value Propositions and Performance Indicators Beyond Peg Maintenance
  • research
Prior to the highly-publicized increased institutional interest in Bitcoin the blockchain industry is currently experiencing, much of the general public’s attention being paid to distributed ledger-based assets was drawn by stablecoins. The rapidly expanding asset class has drawn both praise and resistance from those assessing its potential role in the greater financial ecosystem, with proponents...
Contextualizing the STABLE Act
  • research
In the summer of 2019, Mark Zuckerberg testified before the U.S. House of Representatives, facing nearly-unanimous and atypically bipartisan criticism from legislators related to Facebook’s leading role in the development of the Libra stablecoin. The Libra network and digital asset—whose credentials as a blockchain and cryptoasset, respectively, have been perhaps appropriately criticized—were intended to facilitate...
Improvements to Buy-and-burn Token Models
  • research
In a recent article on Bankless, Jon Itzler, a researcher at the venture capital firm Accomplice, discussed how he reasons about token value flows in the context of blockchain protocols. Among other points, Itzler critically evaluates the standard buyback-and-burn model used by protocols. Citing Maker as an example, he argues the protocol has underserved MKR token holders...
MakerDAO and Community-led Governance
  • research
The Maker announcement suggests the project’s security and long term sustainability depend on successfully transitioning to community-led governance and was quickly followed April 6th with the circulation of 13 ‘Maker Improvement Proposals’(MIPs) designed to elicit discussion and counter-proposals on the foundational processes for its governance system. The Maker Foundation’s plans for leadership transition are notable for several reasons.On...
2019 Review: DeFi
  • research
Key Takeaways The growth of the Ethereum DeFi space was a key blockchain industry trend in 2019, with applications include stablecoins, lending, decentralized exchange, and synthetic asset issuance. Despite growth in Total Value Locked and number of users, DeFi-related tokens, including ETH, saw mixed returns. A variety of key challenges animate the ongoing development of...
Measuring Ethereum DeFi Growth
  • research
Key Takeaways The Ethereum DeFi ecosystem has demonstrated strong growth, though highly concentrated in the lending and crypto-collateralized stablecoin sectors. While many cite Total Value Locked as evidence that all of DeFi is growing, a closer observation reveals that this metric is skewed by the importance of collateral and staking by design in the most...
Distributed Governance: Beyond Token-based Voting
  • research
Overview Early blockchains’ project and protocol governance was (and continues to be) done off-chain, through systems like Bitcoin’s BIP Proposals or Monero’s Forum Funding System, where proposed protocol changes get discussed and development funded. Forks, hard and soft, were the primary vehicle for implementing protocol changes, considered by industry observers as key governance mechanisms, giving...
MakerDAO
  • research
MakerDAO seek to establish a stable cryptocurrency that, by maintaining consistent value, can function as a viable medium of exchange and store of value. Overview Maker is a decentralized lending and stablecoin issuance protocol. At a foundational level, the Maker system allows users to receive cryptoasset-collateralized loans. These loans, however, are in the form of...