Makerdao Dev Insists Defi Protocol Should Leverage Real World Assets to Scale

On March 16, the protocol technologist astatine Makerdao and co-founder of the bundle and plan steadfast Bellwood Studios, Hexonaut, announced a connection to usage existent satellite assets (RWAs) successful bid to standard the decentralized concern (defi) protocol Makerdao. Hexonaut insists the bull marketplace was good, but “the clip is passing” and helium believes Makerdao needs “to instrumentality the adjacent measurement and statesman integrating with the existent satellite astatine scale.”

Makerdao Community Proposal Discusses Integrating Real World Assets Into the CDP Equation

A bundle technologist from the Makerdao squad has an thought that helium thinks volition invigorate the decentralized concern (defi) protocol. Essentially, Makerdao is simply a collateralized indebtedness presumption (CDP) oregon protocol that manages the issuance of the stablecoin DAI. Across assorted blockchains, information from defillama.com statistics amusement determination are astir 31 antithetic CDPs and Makerdao is the largest successful presumption of full worth locked (TVL). Today, Makerdao has $16.15 cardinal TVL, which has accrued 6.99% implicit the past 7 days.

Makerdao is besides the second-largest defi protocol, nether Curve Finance, successful presumption of the worth locked successful defi today. Makerdao’s DAI stablecoin is the fifth-largest stablecoin successful presumption of marketplace valuation, with $9.5 billion. DAI has precocious been overtaken by the stablecoin UST issued connected Terra’s network, arsenic UST present has a valuation of astir $15.4 billion. This past week, Makerdao protocol technologist Hexonaut revealed an thought that proposes to present existent satellite assets (RWAs) into Makerdao’s CDP scheme. Hexonaut explained that a “short-term crutch” was erstwhile the task leveraged centralized stablecoins similar USDC.

It’s clip for the Maker protocol to instrumentality bold enactment and effect the adjacent signifier of DeFi.

The bull marketplace has been benignant to america all, but that clip is passing. We request to instrumentality the adjacent measurement and statesman integrating with the existent satellite astatine scale.

Here’s however we bash it 🧵👇 pic.twitter.com/W3LELDMwY6

— hexonaut.eth | 🪱🕳ing (@hexonaut) March 16, 2022

However, Hexonaut’s connection stresses that crypto-native yields person dried up liquidity, and helium thinks the task should “expand to uncorrelated, prime loans to diversify the portfolio with productive assets again.” The protocol technologist besides published a Makerdao governance proposal the aforesaid day, with different contributors, successful a station called the “Aggressive Growth Strategy.” In the proposal, Hexonaut details that helium thinks it’s inevitable that the task volition trust connected RWAs. Hexonaut proposes a two-step program which involves a superior rise and taking risk-on vulnerability “conservatively.”

The developer believes it’s the close clip for Makerdao to leverage RWAs arsenic a fig of rival protocols person focused connected bridging RWAs. Hexonaut’s connection states:

We judge the clip is close to footwear the RWA effort into overdrive. Along with our ain efforts to amended and standard the excavation of borrowers we already collaborate with, determination are a fig of off-chain counter-parties and on-chain protocols that person emerged implicit the past twelvemonth spearheading the effort to link RWAs into crypto.

Some Makerdao Supporters Loved Hexonaut’s Proposal, While Others Called It a ‘Terrible Idea’

The comments that followed Hexonaut’s connection amusement that immoderate radical thought adding RWAs had pros and cons. One idiosyncratic named Psychonaut said that helium loved the thought of “raising the surplus buffer by selling bond-style investments.”

“I really brought this up connected Discord 2 days ago. However, I similar your exemplary amended than a accepted enslaved structure,” Psychonaut added. On Twitter, however, Hexonaut’s connection received criticism.

“This is simply a unspeakable idea,” a Twitter idiosyncratic named Foobar said. “Complexity is simply a bug, not a feature. DAI needs to basal connected its own, without real-world hazard factors being introduced for nary reason. You similar RWA, fine. Go physique a RWA protocol.” Another Twitter idiosyncratic sarcastically tweeted: “Holy sh**. Maker utilizing real-world centralized assets that tin beryllium frozen instantly by [the] authorities and confiscated forever.”

What bash you deliberation astir Hexonaut’s Makerdao connection and the thought to usage real-world assets (RWAs)? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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