Maker DAO (MKR) Booms on Growth in Users and Staking
The distributed app holds more than 2.2 million ETH, as the growth of DeFi is causing a boom.
Maker DAO (MKR) had a field day on Friday, despite the price drop of Bitcoin (BTC) under $9,200. The MKR asset jumped by 9.52% ahead of the weekend, to $662.05. The asset is up more than 22.95% this week, as the vote on multi collateral DAI in the past week.
The launch of multi-collateral DAI is scheduled for November 18, with a gradual phasing out of the single-collateral dollar-pegged coin. The current issuance of DAI will be marked out as SAI and exchanged through a smart contract.
The hype surrounding multi-collateral lending lifted the usage of the Maker app significantly, show data from DappRadar.
The Maker scheme has managed to build the only viable algorithmic stablecoin, and has survived liquidations and instability. The ascent of DeFi in 2019 put Maker at the top, and it may continue to gain ground. The DAI supply has now grown to above 99 million coins, up from a recent low of 79 million.
The prominence of DAI also attracted the attention of the European Central Bank, which mentioned the approach of Maker in a recent research paper on stablecoins. The ECB views the Maker organization as not sufficiently decentralized, with the potential of small groups to sway decisions.
“MKR holders are not protected from the actions of organised minorities of users, who may decide to implement any change to the smart contract governing the stablecoin initiative,” the ECB researchers claimed.
The observation matches the recent fact that the decision on the MKR stability fee was made by a “whale” with a great voting heft, based on owning a large amount of MKR coins.
The ascent of DeFi, with the growth of Compound and the dy/dx exchange, boosted the price of Ethereum (ETH). The coin traded at $184.84, while briefly rising above $192 this week.