Analysts at AlfaBlok have released a report claiming that the number of Dai stable stocks in annual turnover should increase by more than 70 percent so that MakerDAO (MKR) can maintain its $ 350 million market size. As of May 5, the release of Dai should reach more than a few trillion dollars, which is currently about $ 100 million.
Analysts say they have conducted a "fundamental analysis of this decentralized trade based on auction profitability flows" and concluded:
The current estimate shows a 70 percent increase in the annual supply of Dai, which will reach trillions of Dai in circulation to maintain its current value.
Dai needs to supply several trillion
Alfablok said this is possible, but challenging:
The demand for Dai has been so high that it is difficult to maintain its price at the level of one dollar. The big challenge ahead is to increase supply so that there are hundreds of billions in circulation in the coming decades.
The need for real estate in the form of tokens has been accepted as a kind of collateral to achieve capital in the roundabout that Alphablock estimates. "Today there are more than $ 170 trillion in real estate in the world, so this should be possible," the report said. On the other hand, the report also discusses the possibility of breaking the company's peg (maintaining the price level) and the bail process.
Bail guarantees a debt auction
MakerDAO is a decentralized financial protocol that produces StableCoin Dai. Dai is created when the user deposits ETH, BAT, USD, USDC or WBTC in a smart contract. With deposits equivalent to the assets of the deposited cryptocurrency minus the trading margin, the deposited funds enter a collateral debt position called a "vault." Users can use or borrow from their Vault. Crypto collateral can be secured after the payment is repaid and lost, and if its value falls below the loan price, it can be auctioned off to raise capital for the Maker system. Alfablok in his report; MakerDAO concluded by introducing new innovations for DeFi projects:
MakerDAO is a very important project for Difai - Maker is not only an important piece of the puzzle, but also a model for how DAO-based Diffay companies operate, and we will learn a lot from the results.
