The State of Dai | Episode 16
Multi-Chain Dai-Lights
Circulating Dai by Platform
After a look into the weekly metrics, we’ll dive right into a theme emerging across the ever-growing DeFi space: OHM forks.
How many are there, and how much DAI are is locked into their treasuries?
Another week, another 66 million Dai to Avalanche. The side-chain now holds over 615 million DAI - good for 6.8% of the total supply.
Polygon also saw a nice 19% increase in circulating Dai, with much of this flowing into two platforms:
Superfluid - A streaming service utilizing Polygon’s microscopic transaction fees. Dai can be used and streamed via the platform.
Furucombo - “Drag-and-drop” yield tracker and optimizer.
Like Polygon, we haven’t heard much out of xDAI during the L1 madness, but it’s starting to creep its way back up. And also like Polygon, a large chunk of that growth flowed straight into Superfluid.
The chain now hosts over 32.7 million DAI or .36% of the total supply.
OHM & its Forks
Not a header I saw myself using, but it’s been that kind of year. As protocols sprout and begin to populate the plethora of layer-1 options, we’re seeing a lot of forks.
If the protocol has had previous success, it’s likely been forked. That’s the nature of open-source software, but as the saying goes - the devil’s in the details.
Something made quite clear after Harmony ONE’s 8ight Finance suffered an attack that saw a loss of around 1.75 million. Not as gaudy a headline as some recent hacks, but given that the DAO’s Treasury was held in an EOA with private keys shared over Facebook and Google Drive, clearly an issue is starting to arise.
Let’s take a look at the general state of these forks:
The above takes a given protocol’s market cap and sets it relative to its locked value. By this (admittedly limited) metric, the vast majority of these forks are significantly overvalued.
Of the 14 listed (15 including the remnants of 8Finance), five use Dai as backbone collateral in their treasuries.
Together these five protocols manage nearly 1 billion USD and around 540 million DAI. And of those, three have treasuries with DAI representing 50% or more of the total locked value.
The original, OlympusDAO, with ~55% of its treasury backed by DAI.
Fantom’s HectorDAO holds a staggering 92% of its treasury in DAI.
And Spartacus, also a Fantom project, with a 79% DAI backing.
These three platforms manage around 529 million DAI or 5.74% of the total supply.
The State of Dai
DAI peg experienced slippage during the market drop on Thursday/Friday. It quickly snapped back into the ~1.00 range.
DAI supply held the 9 billion mark through the week of wobbles.
The wBTC vaults have a Gini score of .02 and 0.0, meaning these vaults are near “total equality,” i.e., all vaults near even debt exposure.
The Gini Coefficient measures wealth dispersion within a nation or social group. In crypto, this statistic can be used to measure a chain’s native token dispersion.
In this case - we’re quantifying the concentration risk of individual assets.
Notes
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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.