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Assessing the current status of MakerDAO for long-term MKR holders

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Assessing the current status of MakerDAO for long-term MKR holders

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  • MakerDAO reported a profit of more than $2.8 million through its real-world assets.
  • The revenue generated by the protocol grew, alongside an increasing interest in the MKR token.

MakerDAO [MKR], the protocol which was reigning atop the DeFi space in terms of TVL, lost its spot to Lido on 3 January. However, the protocol remained undeterred and continued to build and invest funds to grow the DAO.

Read MakerDAO’s [MKR] Price Prediction 2023-2024

According to recent data, MakerDAO reported a profit of more than $2.8 million from its recent investments.


Peeking inside the MakerDAO vault

MIP65, also known as Monetalis Clydesdale, is a vault on the protocol deploying MakerDAO capital to invest in short-term bonds and ETFs. MakerDAO has deployed around $500 million worth of USDC into various short-term bonds through the MIP65.

The vault has invested primarily in two commodities: IB01 and IBTA. IB01 is a tracker for one-year U.S. treasury bonds, and IBTA is a tracker for one – three-year U.S. treasury bonds. At the time of writing, most vault funds were deployed into IB01, which made up around 69.8% of the overall vault investments.

Source: Dune Analytics

Along with the investments in these bonds, MakerDAO was observed to be allocating its resources to other real-world assets as well.

For instance, MakerDAO opened up a $100 million DAI loan to Huntington Valley Bank and also onboarded euro-dominated covered bonds over the last month.

Source: Dune Analytics

These investments proved to be fruitful, as the revenue generated by the protocol continued to increase over the past three months, based on data provided by Dune Analytics. Real-world assets contributed the most to the revenue. Other major sources of revenue for MakerDAO were their investments in Ethereum and Stablecoins.

However, the revenue collected through users on the protocol may decline in the near future. This is because the number of unique users on the protocol declined by 54.57%, according to data provided by Messari.

Are your holdings flashing green? Check the MKR profit calculator

Looking at the data

Even though the number of unique users on the protocol declined, the interest in the MKR token increased in the last week.

Based on data provided by Santiment, it was observed that the MKR’s volume grew from 14 million to 38.6 million in the last seven days. MKR’s price paralleled that growth, too. However, despite MKR’s growing prices, the MVRV ratio for the token remained negative.

This implied that the holders of the MKR token would have to wait for the price to rally even further if they wished to sell their holdings for a profit.

Source: Santiment


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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