MakerDAO Success Amid TradFi Collapse Boosts DeFi Cause

1. MakerDAO shares its latest successful milestone for its DeFi services.
2. This is a huge success in comparison to traditional finance’s recent failure.
3. As a result, industry leaders are calling for global DeFi support and adoption.

MakerDAO Protocol celebrates its latest win. The network’s total collateralization of the system is at 154% with 8.26 billion worth of collateral backing. That is a total of 5.38 billion DAI backed as collateral. 

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Adding on, there have been no liquidations triggering since the last week and the system is working as expected. MakerDAO is happy to report that this has always been the case for the system and highlights that the project’s code is law for DAI stability.

In detail, MakerDAO’s PSM is working efficiently without any hiccups. Frank Downing, the Director of Research for ARK Invest highlights this milestone by retweeting it with his quote. He says that despite the USDC and DAI de-peg, the Maker protocol has remained over-collateralized and fully operational throughout the week.

He also highlights how DAI in circulation is up by $1 billion, which is over a 25% increase. He concludes his tweet by saying that the demand for more auditable, transparent, and decentralized financial services has never been this high before.

This is true now more than ever as the traditional financial sector is at the edge of another financial crisis. With banks such as Silicon Valley Bank falling, it is opening the doors for decentralized financial services to take the lead. 

This hot take is further supported by Founder, CEO, and CIO of ARK Invest, Cathie Wood. She responds by drawing light to how the US banking system was seized up due to bank runs threatening regional banks. 

Meanwhile, Bitcoin, Ethereum, and other cryptos did not miss a beat. In fact, she says that it is the instability caused by banking systems that led to the harm of stablecoins instead. Therefore, she concludes that instead of blocking and hindering the growth of DeFi services, authorities should work to regulate and support the growth of this sector. 

Read also:

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• Euler Finance Suffers Ongoing Hack of $200M ETH, DAI