• MakerDAO has seen an increase in interest in wstETH on its vaults, leading to an increase in MKR price and velocity.
• The dominance of the Liquid Staking Derivatives sector has caused many protocols such as MakerDAO[MKR] to struggle for competition.
• However, recent data indicates that MakerDAO could benefit from the growth of LSDs going forward.
MakerDAO Sees Growth FromLSD Sector
The Liquid Staking Derivatives (LSD) sector has grown significantly over the past few months, causing many protocols such as MakerDAO [MKR] to have difficulty competing with the likes of Lido. Despite this, recent data suggests that MakerDAO may be able to benefit from the growth of LSDs going forward.
Increase in WSTETH Vaults
MakerDAO saw a surge of interest in wstETH on its vaults, resulting in an increase in MKR price and velocity. The WSTETH-B vault holds 309 million DAI while the WSTETH-A vault holds 221 million DAI and RETH-A 21 million DAI making it clear that Liquid Staking Derivatives is gaining more popularity within the Maker Protocol. This trend has positive implications for MakerDAO as it shows its ability to cater to users who want exposure staking rewards while also leveraging their staked assets as collateral for generating DAI.
Dominance Of WSTETH
At press time, wstETH had surpassed ETH as the primary crypto collateral for generating the highest amount of DAI debt on the MakerDAO protocol with 530 million compared to 497 million generated from ETH. This shift was driven by the WSTETH-B vault type which reached an all-time high of 309 million DAI in total debt.
Is Your Portfolio Green?
In order to ensure potential users can make informed decisions about their investments into MKR tokens, they can use tools like the MakerDao Profit Calculator which estimates how much green one’s portfolio is doing at any given point in time so they can adjust accordingly if necessary.
Conclusion
Overall, this data provides evidence that despite competing against other DeFi protocols within a sector which is getting increasingly crowded every day, there are still opportunities out there for certain projects such as MakerDao [MKR] to benefit from each other’s progress and success – something that could be beneficial for all parties involved going forward.
