DeFi 1.0 Veteran Evolution: A Deep Dive into MakerDAO Endgame (with Future Airdrop Guide)

Author: Ash

Compiled by: TechFlow

While most people today are focused on memes and AI, we shouldn't forget about DeFi 1.0 tokens—especially those with the following characteristics:

• 90% of tokens already in circulation, with minimal future unlocks.

• Deep liquidity and mature governance structures.

• Revenue-generating mechanisms.

Let’s take a closer look at @MakerDAO and its significant progress since October 2022, when @RuneKek introduced the Endgame proposal. In this article, we’ll explore how the Endgame plan aims to reform and improve MakerDAO's ecosystem governance and tokenomics.

1. Quick Recap: MakerDAO and $DAI

Maker is a collateralized debt position (CDP) protocol and the issuer of $DAI—the third-largest stablecoin by market cap, currently valued at $5.1 billion.

Users generate $DAI by using $BTC and $ETH as collateral, at a 150% collateralization ratio (i.e., each dollar of DAI is backed by $1.50 worth of BTC).

$MKR is the governance and utility token of the MakerDAO ecosystem. Holders vote on key parameters such as stability fees and types of accepted collateral.

2. MakerDAO Endgame

The Endgame plan aims to expand MakerDAO's utility and address some challenges related to decentralization following the dissolution of the Maker Foundation.

The proposal includes transforming the $DAI stablecoin and $MKR governance token, and reorganizing MakerDAO into multiple subDAOs, each with its own token and governance structure.

a) Token Transformation

i. NewStable Token

Both NewStable and PureDAI will succeed the current $DAI (migration will happen later).

NewStable will focus on mass-market adoption and compliance-driven real-world assets (RWA) backing.

This new token will take over $DAI's RWA and traditional finance (TradFi) integrations.

ii. PureDAI

PureDAI retains the original philosophy of $DAI, using only decentralized collateral like $ETH and $stETH. It will use decentralized oracles and have no governance.

Once launched, PureDAI will have no permanent connection to Maker.

iii. NewGovToken

NewGovToken will succeed $MKR and remain associated with MakerDAO. Holders can upgrade from $MKR to NewGovToken at a 1:24,000 ratio.

With Maker's rebranding, the new token will gain fresh utility.

b) Other Developments

i. Lockstake Engine (LSE)

A system that rewards users for long-term locking of MKR and NewGovToken, incentivizing governance participation.

Users who lock MKR or NewGovToken can farm yields in NewStable and upcoming subDAO tokens.

Withdrawing either token incurs a 15% exit fee, which is burned by the protocol and deducted from the principal amount locked.

ii. NewBridge (New Cross-chain Bridge)

This cross-chain bridge connects NewStable, NewGovToken, and other Maker ecosystem tokens from Ethereum mainnet to a major L2 (to be determined).

Additional bridges to more L2s and L1s will follow.

iii. SparkDAO

SparkDAO (token: SPK) is the first Maker subDAO, focused on delivering innovative lending and DeFi products powered by MakerDAO's economic strength at scale.

Products include SparkLend (an Aave fork), capital deployment into RWAs, and perpetual swap yield farming.

Flywheel effect: Users can earn SPK tokens via NewStable and LSE farms. Once obtained, SPK can be used to farm NewGovToken.

iv. Infrastructure Upgrades

MakerDAO will expand its architecture across multiple chains, launching six additional subDAOs extending to other L2s and L1s—including Solana.

It will also launch its own independent L1 (called NewChain) to host MakerDAO's core tokens and governance mechanisms.

For more in-depth reading, see here.

3. What You Can Do to Prepare

In August 2024, Maker will launch NewStable. By engaging in on-chain interactions, users can earn points and qualify for potential airdrops:

• Connect your on-chain wallet to the NewStable interface.

• Participate in their activities.

• Deposit $DAI to receive NewStable. *Note: Users can also convert $MKR into NewGovToken; $MKR functionalities will gradually migrate to NewGovToken.

4. Conclusion

It's encouraging to see established DeFi projects not standing still but continuously evolving to keep pace with the latest trends.

Although these upgrades introduce new tokens and structural changes, we hope the team simplifies the process to ensure a smooth transition for users. We’re excited to see how things develop and look forward to a potential revaluation of the $MKR token.

5. Data & Statistics

CoinGecko:

https://coingecko.com/en/coins/maker

DeFiLlama:

https://defillama.com/protocol/maker

Token Terminal:

https://tokenterminal.com/terminal/projects/makerdao

6. Related Links

Twitter: https://x.com/MakerDAO

Website: https://makerdao.com

Documentation: https://docs.makerdao.com

Endgame Docs:

https://endgame.makerdao.com/endgame/overview