The State of Dai #12
Circulating Dai by Platform
The overarching theme of the month has been bridging.
As Liquidity mining programs dropped to the tune of $700bil, humble farmers hit the bridges. BSC and Polygon were sitting comfy, but with Fantom and Avalanche joining the fray they’ve got new contenders - and a new king.
AVAX is now leading the pack by over 100mil Dai.
Dai-lights
☃️ Avalanche
Avalanche Rush started slow, but it’s rolling now.
Last week AVAX took a resounding lead in on-chain Dai, and this week was no different, as another humble herd of farmers bridged on over to AVAX.
The Avalanche-Ethereum Bridge holds nearly 380 million Dai or 97.7% of all DAI bridged to the chain.
Avalanche is EVM-compliant and features several of the same faces you’d see on Ethereum, but it’s the newcomers propelling the TVL.
The network features four competing money markets, all with a sizable liquidity hold. We took a look at the first three last week, but this was Blizz Finance’s week - and they took full advantage.
Money Markets
Banker Joe came on strong after an unannounced launch of a borrowing and lending market, but this space moves quickly. Less than two weeks later, Blizz Finance stole the spotlight.
Blizz is a fork of Geist, Fantom’s largest money market, which itself is a fork of Aave. What separates Geist, and now Blizz, from Aave is the incentives model.
Aave rewards its users with the AAVE governance token. Blizz and Geist have no such aspirations. Instead, the platforms lean on high APY’s and trading fees that trickle down to holders and stakers.
In other words, they sacrifice long-term scalability to draw in users now, which speaks to how competitive the layer-1 scene’s become.
All in all, over 388 million Dai now calls Avalanche home, or 4.4% of Dai’s total supply.
👻 Fantom
The Fantom ecosystem has seen its ups and downs, but zoom out a bit and you’ll see that growth has been quite steady. The Fantom chain offers low fees, rapid finality, and is fully EVM-compliant, making it an interesting side-chain for the future scalability of Eth 2.0.
Money Markets
Fantom currently houses two money markets: the largest is Geist, a project launched with the support of the Fantom Foundation, and SCREAM - a fork of Compound.
An uptrend now places Fantom at around 202 million Dai or 2.3% of the total supply.
⚔️ xDAI
The xDai chain hasn’t seen much screen time recently, but Blockscout finally added an xDAI token list! I like to think it was for us.
The chain now holds over 24.4mil Dai or 0.28% of the total supply.
Here’s xDAI’s current landscape:
The State of Dai
DAI’s spooky season concluded with peg fluctuations outside the normal range. Crab market === crab peg.
Dai supply at 8 billion with 17.3 billion TVL. ETH, WBTC, and USDP are eating away at USDC’s dominance.
We had 125 new vaults created last week by 81 unique creators.
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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.