RWA (Real-World Asset) in MakerDAO
Financials of MakerDAO
With different types of vaults, MakerDAO enables DAI to serve various roles, from lending and borrowing in money markets to liquidity pools in asset trading to tokenizing assets outside the realm of cryptocurrencies, including consumer loans and US treasury bills.
As of 18 April 2023, MakerDAO has around 4.9 billions US dollars in assets and generates annual lending revenues of 40 million US dollars. The table below provides a snapshot of the various collateral types of MakerDAO.
Collateral Type | Total Value Locked (TVL) (Millions) | Annualized Stability Fee (Millions) |
Liquidity Pools | 190.17 | 0.11 |
Others | 64.86 | 0.99 |
Stablecoins | 3,129.78 | 4.27 |
ETH | 876.65 | 10.34 |
RWA | 709.27 | 24.30 |
Total | $4,970.74 | $40.01 |
Data retrieved from Dune Analytics on 2023-04-18.
TVL represents the total value of collateralized debts.
Stability fee represents annualized lending revenues.
RWA (Real-World Assets) as Collaterals in MakerDAO
A notable development is the large share of revenues generated by RWA or real-world assets. RWA generates the largest portion of revenue despite being ranked the third in terms of total asset (as of April 18 2023) value among different collaterals in MakerDAO.
Real-world assets (RWA) help MakerDAO achieve positive returns in high-interest rate environments and volatile markets.
By taking on RWA as collateral and issuing DAI, MakerDAO indirectly helps tokenize these assets. Among the various collateral types are bank loans, real estate, trade finance, US treasuries and bonds, and revenue-based finance. Among these, 100 millions US dollars of credit has been granted to Huntingdon Valley Bank in Pennsylvania and 500 millions US dollars of credit has been granted to Monetalis, which purchased US treasury bills through Sygnum bank in Switzerland.
"DAI Debt Ceiling" indicates the size of the vault or the amount of DAI that can be drawn by the corresponding transaction partners.
These vaults generate profits and losses (PnL/P&L) as "stability fees" in DAI stablecoins that accrue to the treasury wallet.
More on RWA
Future framework for RWA → MIP105: The Real-World Asset Collateral Scope Framework
"All rules for Real-World Asset Collateral for the DAO are contained in this framework, including the procedures of the Real-World Asset Collateral Scope Framework Advisory Council."
© 2023 Xule Lin & Ying-Ying Hsieh. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
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