The State of Dai | Episode 20
A few high-volume trades at the beginning and end of the week led to some turbulence, but overall the peg is tightening by the week.
The total supply took a nice leap to 9.67 billion, with the TVL in the protocol situated just under 17 billion.
The current LTV of 99% matches a 3-month high and looks to be climbing.
LTV allows lenders to assess the risk of a secured loan by taking the loan amount and setting it relative to the asset’s current market value. (LTV = (Amount owed on a loan/Appraised value of asset) x 100).
Multi-Chain Dai-Lights
Dai activity and current events on:
☃️ Avalanche | 🔶 Binance Smart Chain | 👻 Fantom | 🌃 Polygon | 🧅 Layer-2s
Dashboards
☃️ Avalanche
In an entirely unshocking turn of events, another 108 million DAI was bridged to AVAX last week.
USDC and Tether are still seeing more volume, but the gap has been narrowing week to week. DAI currently represents just over 15% of all assets moved to Avalanche over the past seven days.
Outside of the network’s three money markets, the consistent flow of liquidity has brought on several quick rises and declines. This week’s benefactors were Platypus Finance and Sushiswap.
Platypus describes itself as an “open liquidity stableswap protocol”, offering high stablecoin APYs on deposits in much the same way the Orion Money operates on the Terra LUNA network.
We all know Sushi: after a slight rough patch, the protocol rebounded hard, showing a 34% increase in TVL last week.
There’s not much else to say, so luckily the total says it for me:
AVAX houses over 701 million Dai - an 18% weekly increase, and good for around 7.18% of the total supply.
Current Events
🔶 Binance Smart Chain
Another week passed with very little movement showing on-chain, posting a percent change in circulating DAI lower than 0.00%… again.
The 261 million Dai dictated by the BSC network represents 2.68% of the total supply.
Current Events
👻 Fantom
Fantom has seen explosive growth in the new year, posting overwhelmingly positive net inflows every day last week.
The movement saw Geist steady the ship and begin to extend its gap with the competing money market, SCREAM.
This can primarily be attributed to the rise of Yearn Finance and the 20+% stablecoin APY it offers on the network.
SCREAM relies heavily on high deposit APY’s to offset its sub-par lending rates (an area Geist does very well in) and is unlikely to be able to match Yearn’s offerings.
That said, the Yearn team recently announced that SCREAM would be heavily featured in its FTM “strategies”, theoretically benefiting both protocols in the long term.
Fantom now holds roughly 376 million DAI or 3.9% of the total supply.
Current Events
Shopping.io to integrate with FTM Mainnet.
🧬 Polygon
Not too much changed in the MATIC ecosystem, but money has continued to pour back in - nearly across the board.
Balancer maintained its hold on Dai movement through Poly DEXs, but the competition is heating up - and a lot of DAI is being moved on numerous platforms.
As a whole, Polygon currently holds over 453 million DAI, good for 4.6% of the total supply.
Current Events
🧅 Layer-2s
The L2 Overview
Arbitrum
Like Optimism, Arbitrum is an optimistic rollup.
They’re optimistic in that any validator can post a block of transactions they claim to be accurate, while still providing the remaining validators ample opportunity to dispute a block if it’s suspected to be fraudulent.
Unlike Optimism, Arbitrum offers an entire suite of dapps ranging from Ethereum ports to native projects.
That said, the top protocols aren’t exactly new names.
Curve | 365mil TVL
Sushiswap | 350mil TVL
Abracadabra | 311.37mil TVL
But, native projects have been showing a healthy dose of growth as more and more users opt to explore Ethereum scaling solutions.
In total, Arbitrum plays host to over 34 million DAI, a 60.5% quarterly increase.
Aztec
Aztec is a zero-knowledge (zK) rollup being marketed as the “Ethereum privacy layer”, raising over $17M in its Series A.
Though its efforts haven’t translated to much DAI movement, Aztec has arrived.
Not long after, the team announced a community-led grants program, which aims to provide support and resources to developers looking to build on the network.
So while growth has been slow, like NEAR, it’s also been methodical. Time will tell, but Aztec is one worth keeping an eye on this year.
Optimism
As noted last week, for the past month total Dai circulating Optimism has been off by around 10 million Dai. For full details, see this thread.
Major props to Protocol Engineering for consistently going above and beyond.
Now, moving on to the network itself - Optimism has had some growing pains. New and existing dapps have been slow to port, allowing Synthetix, Uniswap, and Lyra to dominate the bulk of the market.
Still, Optimism now holds around 28.8 million Dai, representing a 2.87% quarterly decrease.
Loopring
Loopring is one of several competing zKs, and like its competitors - is very much still in the prototype phase.
While several are working on offering the full-functionality available on Optimistic rollups, they’re currently best suited for simple transactions.
Loopring.io can be used to bridge to the network, farm, and provide liquidity.
The L2 only holds around 617k DAI, but as the quarterly growth shows, that could change in a hurry.
zkSync
As you’ve probably guessed, zkSync is another zK rollup competitor.
Like Loopring, its only offering is its native bridge and DEX, Zigzag.
That said, our focus is on DAI, and to this point - zkSync has managed to attract a lot more of it than the competition.
Over 3.2 million Dai has been bridged to the L2, good for a casual 127.4% quarterly increase.
The Full Overview
Circulating Dai by Platform
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Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does not serve as financial advice or an inducement to vote in any specific way. This update is purely for information and communication purposes only.