On March 16, the protocol engineer at Makerdao and co-founder of the software program and design agency Bellwood Studios, Hexonaut, introduced a proposal to make use of actual world belongings (RWAs) in an effort to scale the decentralized finance (defi) protocol Makerdao. Hexonaut insists the bull market was good, however “the time is passing” and he believes Makerdao wants “to take the subsequent step and start integrating with the true world at scale.”
Makerdao Group Proposal Discusses Integrating Actual World Property Into the CDP Equation
A software program engineer from the Makerdao group has an concept that he thinks will invigorate the decentralized finance (defi) protocol. Primarily, Makerdao is a collateralized debt place (CDP) or protocol that manages the issuance of the stablecoin DAI. Throughout numerous blockchains, knowledge from defillama.com statistics present there are roughly 31 completely different CDPs and Makerdao is the most important by way of whole worth locked (TVL). At this time, Makerdao has $16.15 billion TVL, which has elevated 6.99% during the last seven days.
Makerdao can be the second-largest defi protocol, beneath Curve Finance, by way of the worth locked in defi immediately. Makerdao’s DAI stablecoin is the fifth-largest stablecoin by way of market valuation, with $9.5 billion. DAI has just lately been overtaken by the stablecoin UST issued on Terra’s community, as UST now has a valuation of round $15.4 billion. This previous week, Makerdao protocol engineer Hexonaut revealed an concept that proposes to introduce actual world belongings (RWAs) into Makerdao’s CDP scheme. Hexonaut explained {that a} “short-term crutch” was when the mission leveraged centralized stablecoins like USDC.
It’s time for the Maker protocol to take daring motion and seed the subsequent part of DeFi.
The bull market has been form to us all, however that point is passing. We have to take the subsequent step and start integrating with the true world at scale.
Right here’s how we do it 🧵👇 pic.twitter.com/W3LELDMwY6
— hexonaut.eth | 🪱🕳ing (@hexonaut) March 16, 2022
Nevertheless, Hexonaut’s proposal stresses that crypto-native yields have dried up liquidity, and he thinks the mission ought to “increase to uncorrelated, high quality loans to diversify the portfolio with productive belongings once more.” The protocol engineer additionally revealed a Makerdao governance proposal the identical day, with different contributors, in a put up known as the “Aggressive Progress Technique.” Within the proposal, Hexonaut particulars that he thinks it’s inevitable that the mission will depend on RWAs. Hexonaut proposes a two-step plan which includes a capital increase and taking risk-on publicity “conservatively.”
The developer believes it’s the correct time for Makerdao to leverage RWAs as a lot of competitor protocols have centered on bridging RWAs. Hexonaut’s proposal states:
We consider the time is true to kick the RWA effort into overdrive. Together with our personal efforts to enhance and scale the pool of debtors we already collaborate with, there are a variety of off-chain counter-parties and on-chain protocols which have emerged during the last yr spearheading the trouble to attach RWAs into crypto.
Some Makerdao Supporters Beloved Hexonaut’s Proposal, Whereas Others Referred to as It a ‘Horrible Concept’
The feedback that adopted Hexonaut’s proposal present that some folks thought including RWAs had professionals and cons. One person named Psychonaut stated that he cherished the concept of “elevating the excess buffer by promoting bond-style investments.”
“I truly introduced this up on Discord two days in the past. Nevertheless, I like your mannequin higher than a standard bond construction,” Psychonaut added. On Twitter, nevertheless, Hexonaut’s proposal acquired criticism.
“This can be a horrible thought,” a Twitter person named Foobar said. “Complexity is a bug, not a function. DAI wants to face by itself, with out real-world danger components being launched for no purpose. You want RWA, advantageous. Go construct a RWA protocol.” One other Twitter person sarcastically tweeted: “Holy sh**. Maker utilizing real-world centralized belongings that may be frozen instantly by [the] authorities and confiscated ceaselessly.”
What do you consider Hexonaut’s Makerdao proposal and the concept to make use of real-world belongings (RWAs)? Tell us what you consider this topic within the feedback part under.
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