MakerDAO Set To Unveil On StarkNet, Promises To Cut Transaction Costs In Half
MakerDAO, the DeFi blue-chip project platform, is on the verge of integrating StarkNet into its system to reduce the high transaction costs and accelerate rapid withdrawal times.
MakerDAO is the decentralized organization (DAO) in charge of the DAI stablecoin, making relative waves in terms of price performance, and has announced the upcoming deployment of the StarkNet protocol on the Ethereum Layer-2 platform. The launch date is slated for April 28.
A highly sought-after smart contract-based system used for lending and borrowing crypto without requiring intermediaries, MakerDAO is one of the key players in the DeFi space, considering its vital role. The protocol has been instrumental in the success of most decentralized finance platforms by elevating the performance of the systems.
The protocol is built on the Ethereum blockchain. It has two currencies in its ecosystem, a stablecoin (DAI) and Maker (MKR), considered the system’s governance token.
The integration of MakerDAO with StarkNet is the first time the protocol is hosted on the Ethereum system rollups developed with the Zero-knowledge technology. The use of rollups is to settle transactions out of the main blockchain, reducing congestion and offering faster transaction speeds without affecting the platform’s overall performance.
Introducing StarkNet
StarkNet is manufactured by the Israeli firm Slackware. It provides a Layer-2 scaling solution for the Ethereum blockchain network.
It uses cryptography technology, allowing blockchains like Ethereum to process large transaction volumes quickly and at an affordable rate. Due to the leverage of zero-knowledge technology, a significant part of users’ private data is usually retained.
MakerDAO’s development team released an announcement stressing the importance of the integration with StarkNet. It would drastically reduce the transaction costs of DAI and its minting compared to what is gotten from Ethereum’s mainnet.
According to Louis Baudoin from StarkNet Core Unit, in discussion with Decrypt, MakerDAO’s gas fee has always been dominated by transactions that have to do with minting. Once the Multi-Collateral DAI is deployed, the transaction and minting costs will be lower on StarkNet than what is gotten from the Ethereum mainnet.
Meanwhile, the latest development continues last year’s integration, in which the Arbitrum and Optimism protocols were deployed. It is a part of the multichain strategy to make the DAI a tool for enabling users to deposit their collateral and generate more DAI stablecoins.
Quick Withdrawals, Superfast Minting
StarkNet has many advantages for protocols looking to scale their operations to ensure efficiency and convenience in service delivery.
Baudoin further added that some of the advantages of deploying StarkNet include fast withdrawals and quick minting time compared to what is gotten elsewhere.
The quick mining time is thanks to the introduction of the Maker Wormhole, which is the protocol’s go-to solution for instant movement of DAI within the Ethereum network.
Moreover, a dedicated MakerDAO team is on standby, working on implementing a further roadmap for the integration of the StarkNet, which will ultimately become MakerDAO’s full-scale integration.
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