Makerdao Plans to Integrate Ethereum L2 Solution Starknet to Lower DAI Transaction Costs

The decentralized concern (defi) task Makerdao has announced its plans to enactment the zero-knowledge (ZK) rollup solution Starknet successful bid to marque DAI transactions faster and web costs cheaper. Starknet volition beryllium integrated into the defi protocol connected April 28, 2022, arsenic portion of Makerdao’s multichain strategy expansion.

Makerdao’s Multichain Strategy Expansion Grows With Starknet Support

On Wednesday, the improvement squad down the Makerdao project revealed plans to integrate the Ethereum furniture 2 (L2) scaling solution Starknet. The protocol Starknet is simply a merchandise developed by the startup Starkware and it offers an L2 scaling solution with ZK-based computations that utilize validity proofs.

Makerdao is the issuer of the stablecoin DAI, and aft Starknet is supported the squad believes it volition marque DAI “minting, trading and liquidation importantly faster.” Starknet’s Makerdao integration follows the project’s span deployments connected Arbitrum and Optimism. A task contributor from Starknet Core Unit astatine Makerdao elaborate that cross-chain span exertion has swelled due to the fact that of costly state fees.

“As we spot unsustainable state fees thrust much enactment and users to a wider assortment of blockchains, information challenges that travel with bridging volition proceed to grow,” the Starknet Core Unit contributor said successful a connection sent to Bitcoin.com News. Projects indispensable determination connected to Layer-2 to proceed to service users, and Makerdao is partnering with Starknet to bash precisely that.”

The Starknet Core Unit squad subordinate added:

With this strategy, we are positioned to cement the Maker’s Protocol’s presumption arsenic the starring decentralized lending protocol successful the industry, and besides the presumption of DAI arsenic the astir decentralized, unafraid stablecoin. Through this development, Makerdao volition summation its merchandise offerings and turn alongside Ethereum.

While Makerdao Expands, Decentralized Algorithmic Stablecoin Competitors Rise Above DAI

Makerdao’s DAI stablecoin is presently the fifth-largest stablecoin crypto plus contiguous with an $8.7 cardinal marketplace capitalization. For rather immoderate clip pursuing DAI’s inception, Makerdao’s stablecoin was the largest decentralized stablecoin by marketplace capitalization, but precocious Terra’s UST has surpassed DAI’s wide valuation.

Makerdao besides has its ain autochthonal coin maker (MKR), which is the 73rd largest marketplace capitalization contiguous with $1.7 billion. During the announcement connected Wednesday, the squad further said that the upcoming improvements “will apt besides summation the fig of Makerdao users.”

Retail users volition beryllium capable to leverage Maker Vaults again arsenic good successful bid to deposit collateral and make DAI. Currently, the engineering squad has started to instrumentality a multiphase roadmap for the integration by archetypal creating a elemental cross-chain span tethered to a wallet.

“Subsequent phases see the merchandise of accelerated withdrawals successful Q2, followed by near-instant teleportation of DAI crossed Layer-2,” Makerdao’s announcement concludes. “Finally the implementation of the entirety of Makerdao connected Starkware—heralding multi-collateral DAI (MCD) contracts and an interface to migrate atrocious indebtedness to the Ethereum Layer-1.”

What bash you deliberation astir Makerdao adding Starknet enactment adjacent week? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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