The State of Dai | Episode 17
This will be the final Multi-chain Dai-lights of 2021! To cap off the year, let’s zoom out and take a look at the macros.
How much have these chains grown, and how much DAI has left home for “greener” pastures?
While it may not show in the quarterly numbers, if we step back just another month, Avalanche’s growth is staggering. Even without the (recent) parabolic boost, AVAX has quickly grown into Dai’s favorite side-chain.
On September 2nd, the chain clocked in at just under 284 million Dai split between 550 addresses. Fast forward to mid-December, and AVAX now hosts over 547 million Dai, or ~6% of the total supply.
Fantom saw the largest quarterly growth of the layer-1s we’ve been tracking with a 330% increase in circulating Dai - climbing from 71.3 million Dai in September to over 306 million today.
The chain now holds ~361 million Dai or 3.3% of the total supply.
The xDAI chain was an early starter but found itself on the wrong side of the DeFi frenzy for the majority of the year. This quarter saw it start to right the ship.
September saw circulating Dai on the chain reach a low of 19.7 million, but a realignment of strategy and vision propelled that total back up to 41.8 million.
The leap was good for a quarterly increase of 112.4% in circulating Dai.
Dai Bridged (relative)
This chart visualizes the relative growth of the tracked chains over time.
The year saw parabolic growth throughout the DeFi landscape, and nearly every functioning L1, L2, and side-chain has found itself a benefactor.
This can be seen in the above overview - but it also helps to illustrate just how fast the sands can shift in the cryptosphere.
Secret Network, xDAI, and zK Hopium were Q1’s superstars, but that was quickly put to bed in April, which saw a resurgence in DeFi activity propelled by Polygon and Fantom.
Then came Q4 - headlined by massive liquidity mining programs, and a bridge to every L1 under the sun. With Dai already showing up on so many different chains, it’s exciting to think about all the new places it will go in the coming year.
The State of Dai
DAI peg was generally fine aside from large-trade slippage, which is normal across DEX platforms. The weekly high/low was at 1.09 and 0.95 respectively, giving DAI a slight premium on 417 million in volume over the past week.
The average price puts DAI just below peg at 0.999945.
Up to a 9.2 billion total supply, with 18 billion in TVL.
The DAO’s current Loan-to-Value(LTV) ratio of 79% is the highest it’s been since October.
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).
A total of 31 new creators opened 49 vaults.
That recent vault growth has been primarily spearheaded by LINK, MATIC, WETH, and wBTC.
We value your input! Take our survey to let us know what we might be missing or how we can do better.
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.