Maker: The First Onchain App to Explode?
How to Capitalize on Circle $USDC Going Public
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Launched in 2017 on Ethereum, Maker stands as one of the earliest applications developed on a blockchain.
Fast forward 7 years later (to today) and Maker is:
📈 Generating over $30 million per month in revenue
💰 Holds more than $5 billion in its treasury
🔒 Has more than $8 billion of TVL on its platform
Despite all of this, $MKR has a fully diluted valuation (FDV) of less than $2 billion. 🤯
If you’re not aware, Maker is developing the $DAI stablecoin, which is the main source of Maker’s revenues.
In recent events, Maker’s centralized competitor, Cicle ($USDC), has recently filed for an IPO in the USA.
This could mark a significant turning point in validating stablecoins and driving their mainstream adoption, which could be a catalyst for Maker.
Even before Circle’s IPO, Maker was looking like an undervalued asset, mainly because approximately 15% of its token supply was being force sold by specific funds, so the price was being held down.
Looking ahead, there are some interesting catalysts coming from a soon-to-be updated $MKR tokenomic structure, an ecosystem rebrand and the potential of “The End Game”.
…more on all of this in just a second.
What’s the opportunity for you?
While $MKR is already up 3.5x from its lows in December 2022, it still has 3x to go before reaching its previous all time highs from last cycle.
This makes $MKR a potential candidate to outperform our base asset, $ETH.
I’ve been watching this for a few months and I wish I wrote a PRO report sooner, (I had no time over the holidays!). But the story of Maker and the chance to see some exciting events happen this year is something I really want to share with you now.
Here’s what Maker has going for it this year and what we’re going to explain in this report:
Earning $30 million monthly with significant growth potential and a reliable revenue stream in all market conditions
Their main centralized competitor is about to go public
Forced selling of $MKR by large funds has recently stopped
A rebrand in the assets to simplify the MakerDAO ecosystem
Upcoming "stock split" to reduce $MKR's token price (from $2,000 to less than $1)
Implementing the End Game strategy to position Maker as the most intricate and decentralized protocol and DAO in the crypto space
Ok, before we get too far ahead of ourselves. Let’s get everyone up to speed on just what Maker is and clarify the pieces of its ecosystem.
What is Maker? 🤔
The idea behind Maker was conceived back in March 2015 and brought to reality in 2017. Since then, Maker has been operating as a decentralized protocol running on the Ethereum blockchain.
It operates like a global reserve bank, introducing the concept of DeFi to the wider finance world.
The primary goal of Maker is to provide a USD stablecoin known as $DAI.
The protocol employs a system where users can collateralize assets like $ETH, liquid staked $ETH, $BTC, and other established tokens on Ethereum, to generate $DAI tokens.
$DAI is designed to maintain a stable peg to the U.S. dollar. This stability is maintained through overcollateralization; users need to lock in more value of assets than the $DAI they generate.
Originally, Maker was created by the Maker Foundation, which held control over the protocol's contract during its launch.
However, on March 25, 2020, the foundation transferred control to MakerDAO, a DAO consisting of $MKR token holders.
MakerDAO's decentralized governance model involves $MKR token holders who make decisions around adjusting interest rates, determining collateral types and managing the overall debt limit.
So to be clear, here are the following pieces of the ecosystem:
Maker - A DeFI protocol on Ethereum
MakerDAO - The governing body of Maker
$MKR - The governance token of MakerDAO
$DAI - The stablecoin
One other important note about Maker is that the Maker team never built a Maker front-end for users to interact with it.
Instead, Maker focused on building the protocol and allowed other teams to build front-end interfaces which users could interact with.
Maker should be thought of as a decentralized protocol on Ethereum that apps can be built on top of, rather than an app itself.
The Solid Fundamentals Of Maker 💪
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Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.