As stablecoin competitors multiply, where will the veteran player MakerDAO ultimately end up?
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As stablecoin competitors multiply, where will the veteran player MakerDAO ultimately end up?
$DAI is the third-largest stablecoin by market capitalization, and Maker captures approximately 40% of the DeFi revenue on Ethereum.
Navigating Web3 tides with focused insightsAuthor: Fiona
Compiled by: TechFlow
@MakerDAO's Endgame: What Is It?
As the stablecoin ecosystem continues to thrive, DeFi veteran protocol MakerDAO is evolving by launching its new stablecoins NewStable and PureDai.
In this post, I’ll walk through Maker’s current state and future roadmap.
Background of MakerDAO
MakerDAO is a CDP protocol that issues $DAI. Users can mint $DAI by depositing $BTC, $ETH, or other whitelisted crypto assets at a 150% collateralization ratio.
$DAI is the third-largest stablecoin by market cap, and Maker captures around 40% of DeFi profits on Ethereum.
Use Cases for $DAI
As a stablecoin, $DAI has been widely adopted across various DeFi applications. Additionally, $DAI holders can stake via the Dai Savings Rate (DSR) module to earn approximately 8% annual percentage yield (APY) in $sDAI.
Use Cases for $MKR
$MKR is the governance and utility token within the Maker ecosystem. Holders of $MKR can vote on key mechanisms in MakerDAO, including stability fees, collateral types, and other critical parameters.
MakerDAO's Endgame Plan
Approved in October 2022, this plan lays the foundation for MakerDAO’s governance and upcoming developments.
Among many initiatives, a key upgrade involves renaming the $DAI and $MKR tokens:
$DAI → NewStable and PureDai
$MKR → NewGovToken
Why Is MakerDAO Creating Two Successors to $DAI?
Because they recognize market demand for two distinct types of stablecoins — decentralized and compliant. They aim to meet both needs by offering dual options.
Users will be able to choose whether to migrate their $DAI to either NewStable or PureDai.
$DAI → NewStable
NewStable is the first successor to $DAI.
Expected to launch by end of 2024, NewStable focuses on compliance-driven RWA backing, aiming to integrate with traditional financial institutions and attract institutional liquidity into Web3. DSR accruals will shift from $DAI to NewStable.
$DAI → PureDai
PureDai is the second successor to $DAI.
Expected to launch in 2025/2026, PureDai emphasizes full decentralization, using purely decentralized collateral. Once launched, PureDai will no longer maintain a permanent connection to MakerDAO.
$MKR → NewGovToken
NewGovToken is the successor to $MKR.
NewGovToken will become the new governance token for MakerDAO. It will remain linked to MakerDAO. $MKR holders can upgrade to NewGovToken at a 1:24,000 ratio.
Other Upgrades
Beyond token rebranding, the Endgame plan also includes:
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Locked staking engine
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New bridging protocol
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More sub-DAOs targeting different market segments
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New chains
What’s Next?
Maker is expected to launch NewStable before the end of 2024. Users can earn points and potential airdrops by:
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Connecting their wallet to the NewStable user interface
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Engaging in interactions and farming activities
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Depositing $DAI to receive NewStable
The above is personal analysis and does not constitute financial advice. Please DYOR.
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