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Maker Protocol Revenues Realize Record $165M Revenue as Interest Rates Surge

The Maker Protocol reports that increased US treasury yields and DAI returns boosted its revenue to a two-year high. A revisit of Makerburn.com data shows that the DAI stablecoin supply surged to a five-month high to realize 5.343 billion. 

The steep rise arises from the race to profit from the increased returns earned in the Maker deposits. In particular, prominent DeFi entities, including OlympusDAO and Justin Sun, are leading the race. 

Maker Protocol Earns Over $160 Million as DAI Supply Increases

Maker involves a stablecoin issuing platform running on Ethereum. Its governance occurs through the MakerDAO community created by the holders of MKR tokens. The annualized revenue realized by Maker protocol realized $165.4 million as DAI supply increased per the Makerburn.com data. It implies that Maker is earning an estimated $165 million annually in fees charged.

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The deposits realized in the Maker protocol’s DAI Savings Rate (DSR) increased nearly four times. As indicated in the Dune Dashboard, the asset-liability lead at MakerDAO, Sebastien Derivaux, observed that the deposits increased from $340 million to $1.3 billion.      

The sharp increment is linked with the August 6 move by the MakerDAO community to vote for a temporary increase in the annual yields to 8% from 3.19%. 

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DAI Holders Attracted by Need to Profit From Maker’s Revenue

DAI holders leverage the Maker’s DSR contracts to share in the platform’s revenue whenever they deposit DAI into the protocol. The protocol’s revenue is earned via yields derived from fees and collateral deposits made by the Maker users.

A detailed protocol analysis shows that Tron’s Justin Sun wallets linked to OlympusDAO made significant deposits. The former deposited $148.5 million, while the latter committed $124.8 million worth of DAI with intentions to benefit from the higher returns. 

Maker Protocol benefited from the rise in the short-term yield for the US Treasury to its highest in five months. In particular, the increase in the yield realized 4.91%, thus facilitating the increase in the protocol’s earnings. 

MakerDAO’s Revenue Set for Steady Increase 

The increment in yield increased the Maker protocol’s revenue owing to the substantial exposure to the US government bonds. Derivaux’s dune dashboard indicates that the US bonds constitute 57.7% of the protocol’s total revenue.

Derivaux projects that revenues could remain elevated, provided the short-term rates are high. He admitted that MakerDAO’s revenue will likely surge when Gemini and Paxos start remitting returns on the stablecoin deposits.

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Derivaux projects that the remittance would mirror USDC yields realized through the Coinbase Custody. He added that the one-year effort to position assets as yielding is impressive as the anticipated returns come to fruition.

Editorial credit: Grey82 / Shutterstock.com


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Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

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