You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $20/month you can upgrade to our FULL library of 60+ reports (including this one) and complete industry-leading analysis on the top crypto assets.
Becoming a Premium member means enjoying all the perks of a Basic membership PLUS:
- Full-length CORE Reports: More technical, in-depth research, actionable insights, and potential market alpha for serious crypto users
- Early access to future CORE ratings: Being early is sometimes just as important as being right!
- Premium Member CORE+ Reports: Coverage on the top issues pertaining to crypto users like bridge security, layer two solutions, DeFi plays, and more
- CORE report Audio playback: Don’t want to read? No problem! Listen on the go.
Maker's "Endgame"
MakerDAO, a pivotal figure in the crypto landscape, is embarking on an ambitious endeavor known as "Endgame." This strategic initiative marks a significant pivot towards enhancing the robustness and decentralization of its DAI stablecoin. Amidst an environment where DAI's current structure shows a noticeable centralization, primarily tethered to the U.S. dollar and centralized entities, MakerDAO's vision with Endgame is to elevate DAI to unprecedented levels of decentralization and resistance to censorship, spanning several stages until its culmination.
The journey begins with the "Pigeon Stance," a phase focused on swift expansion and the accumulation of Ethereum (ETH) as collateral to fortify DAI against potential adversities, extending until roughly 2025. This period interestingly does not set a cap on the exposure to real-world asset debt, signaling a bold approach to growth and resilience building.
Following this is the "Eagle Stance," which introduces a balanced approach by limiting real-world asset collateral to a maximum of 25% of all debt, aiming to reduce external dependencies. The final, most conservative phase, known as the "Phoenix Stance," aims to eliminate the reliance on real-world assets altogether, showcasing a strong commitment to decentralization.
In tandem with these stages, MakerDAO is also evolving its organizational structure through the introduction of SubDAOs. These entities are designed to segment MakerDAO into smaller, specialized groups focusing on various functions such as risk management, software development, and marketing. Each SubDAO operates with its governance token, allowing for tailored governance mechanisms and attracting niche expertise.
The first among these, SparkDAO, is poised to manage MakerDAO's DeFi infrastructure, including the Sparklend lending protocol, with its launch anticipated in May 2024. While the formation of SubDAOs presents a new frontier of opportunities, it also harbors challenges, notably the potential dilution of MKR token's value. However, this dynamic introduces a novel pathway for DAI holders, who now have the chance to farm SubDAO tokens, thereby diversifying their involvement within the ecosystem. These tokens, like Spark, offer not only a hedge against MKR's volatility but also an opportunity for appreciation and income generation for those with specialized skills.
2024 Update
MakerDAO is on the brink of launching the first phase of its ambitious 'Endgame' strategy in the summer of 2024. This initial phase is pivotal, aiming to deploy all major features of Endgame simultaneously to kickstart a cycle of growth. The strategy is designed to synergize SubDAOs, tokenomics, a fresh branding, and innovative user acquisition techniques to spur a rapid increase in Dai's adoption, aiming for a future where the Dai supply scales to over 100 billion.
Phase 1 is set to introduce a new branding for MakerDAO, detailed in a post by founder Rune Christensen. This rebranding will be highlighted through a dedicated promotional website, inviting early adopters to participate in a launch incentive promising enhanced returns with the new tokens. Following the brand's introduction, MakerDAO will unveil two new tokens, named NewStable and NewGovToken (with their final names to be announced). These tokens are positioned to work alongside the existing Dai and MKR, offering users access to a broadened feature set.
Key innovations following the token launch include the Lockstake Engine and a cost-efficient bridge connecting Maker ecosystem tokens with a leading Layer-2 network. The Lockstake Engine is designed to lock MKR or NewGovToken, offering users improved risk/reward scenarios. Meanwhile, the new bridge, temporarily dubbed "NewBridge," aims to streamline economic activities across layers, particularly yield farming on Layer-2.
Phase 1 will culminate with the roll-out of SparkDAO, the first in a series of SubDAOs focusing on lending activities. These developments lay the groundwork for subsequent phases of the Endgame strategy. Phase 2 will concentrate on scaling the foundational elements introduced in Phase 1, including the Lockstake Engine, NewBridge, and SparkDAO. Phase 3 will unveil NewChain, a dedicated L1 blockchain tailored for Maker's core tokenomics, governance, and serving as a nexus for Real-World Assets, DeFi, and cross-blockchain interactions. Finally, Phase 4 will cement the Final Endgame, solidifying the foundational governance mechanisms of Maker Core as immutable and realizing the ultimate vision of the Endgame strategy.
