Author: Fiona

Compiled by: TechFlow

What is the endgame for @MakerDAO?

As the stablecoin ecosystem continues to prosper, MakerDAO, a veteran protocol in the DeFi field, is evolving by launching its new stablecoins NewStable and PureDai.

In this post, I will cover the current state of Maker and its future plans.

Background of MakerDAO

MakerDAO is a CDP protocol that issues $DAI. Users can mint $DAI at a collateralization rate of 150% by depositing $BTC, $ETH, or whitelisted crypto assets.

$DAI is the third-largest stablecoin by market cap, and Maker accounts for about 40% of DeFi profits on Ethereum.

$DAI Uses

As a stablecoin, $DAI has been widely used in various DeFi applications. In addition, $DAI holders can stake through the Dai Savings Rate (DSR) module and obtain $sDAI with an annual yield (APY) of about 8%.

$MKR Uses

MKR is the governance and utility token in the Maker ecosystem. MKR holders can vote on the mechanics of MakerDAO, including stability fees, collateral types, and other key parameters.

MakerDAO’s Endgame Plan

Approved in October 2022, the plan lays the foundation for MakerDAO’s governance and upcoming developments.

A key upgrade among many projects is the renaming of the $DAI and $MKR tokens:

$DAI —> NewStable 和 PureDai

$MKR —> NewGovToken

Why did MakerDAO create two successors to $DAI?

Because they realized there was a need in the market for two different types of stablecoins - decentralized and compliant. They met both needs by offering two options.

Users can choose to migrate their $DAI to NewStable or PureDai.

$DAI —> NewStable

NewStable is the first successor to $DAI.

Expected to launch in late 2024, NewStable is focused on compliant RWA support, aiming to integrate with traditional financial institutions and attract institutional liquidity into Web3. DSR will accumulate to NewStable instead of $DAI.

$DAI —> PureDai

PureDai is the second successor to $DAI.

Expected to launch in 2025/2026, PureDai is focused on full decentralization, using purely decentralized collateral. Once launched, PureDai will no longer be permanently connected to MakerDAO.

$MKR —> NewGovToken

NewGovToken is the successor to $MKR.

NewGovToken will be the new governance token for MakerDAO. It remains connected to MakerDAO. $MKR holders can upgrade to NewGovToken at a ratio of 1:24,000.

Other Upgrades

In addition to the token replacement, the Endgame plan also includes:

  • Locking the Staking Engine

  • New Bridge Protocol

  • More sub-DAOs targeting different market segments

  • New Chain

What's next?

Maker is expected to launch NewStable by the end of 2024. Users can earn points and potential airdrops by:

  • Connecting wallet to NewStable UI

  • Interact and pet

  • Deposit $DAI to receive NewStable

The above is personal analysis and does not constitute financial advice, please DYOR.