Maker Thesis - The Leviathan of DeFi
“You come at the king, you best not miss” – Omar, The Wire
Key Takeaways
Maker is the leading decentralized bank with the potential to become one of the largest financial institutions on the planet – a “winners-take-most” multi-trillion dollar opportunity. Its currency Dai is the most widely used decentralized stablecoin in the industry with its deep liquidity, integrations, and track record, enabling Maker to offer structurally cheaper credit than peers. Combined these attributes provide compounding advantages, positioning Maker to be a secular share gainer in onchain banking activity.
At ~2x 2025E revenue, Maker is one of the most undervalued protocols in the cryptoeconomy given its industry leading earnings, best-in-class unit economics, and growing market dominance. Although Maker was penalized historically for its conservatism, its ongoing “Endgame” rollout could turn the tides as Maker evolves into a more scalable ecosystem of modular protocols. With upcoming airdrops, as well as a project rebrand and token redenomination, Maker has the potential to become one of the biggest stories of the cycle as it executes on what may be the most ambitious roadmap in DeFi’s history.
Maker is primed to finance Ethereum’s economic boom – a multi-billion dollar fee opportunity that could yield a $40 billion valuation for the project. Most notably this cycle, Maker can play a critical role in the staking, restaking, and structured product economies by providing the cheapest source of financing available onchain. Indeed, with its industry leading pricing power, Maker may very well capture more fees than the end protocols it’s financing, absorbing the lion’s share of DeFi profits this cycle. By passing a portion of these fees to Dai holders through the Dai Savings Rate, Maker can supercharge Dai’s growth, win the onchain economy, and gain share from centralized stablecoins.
Syncracy launched in 2022 with a key thesis that the next “FAANGs'' were emerging in the cryptoeconomy. Despite the bear market, many category leaders were continuing to push the frontier and consolidate their sectors, providing the foundation for the cryptoeconomy’s next expansion. This trend was especially true in DeFi, where the first generation of projects eclipsed $100M in revenue amidst their growing dominance.
However, as we surveyed the DeFi universe throughout the bear market, one project towered above the rest as the leviathan amongst the leaders. To our surprise, no matter where we turned, all roads kept leading to a single project that captured nearly 40% of all DeFi profits on Ethereum in the past 6 months. That project is MakerDAO – the pioneering DeFi giant on the precipice of its groundbreaking upgrade, Endgame, which has the potential to supercharge the Dai supply and transform Maker into the cryptoeconomy's first super-app. As such, in Q2 2023, Syncracy built a large position in MKR.
Below we share our thesis.
The Foundation of Ethereum’s Financial System
Banking as a Bedrock
Banking is foundational to the advancement of civilization. It is also foundational to the advancement of Ethereum.
In essence banking is a technology that enables individuals, businesses, and governments to transport value across space and time. Across space, banks transport value by issuing money and intermediating payments. Across time, banks transport value by intermediating credit and engaging in maturity transformation. The combined effect is more efficient capital allocation across the global economy, as well as greater economic growth through pulling forward spending. Unsurprisingly banking is one of the largest industries in the world, with the opportunity valued in the trillions of dollars – a figure that doesn’t even include the largest of these institutions known as central banks, which operate at the sovereign level.
Launched in 2017, Maker is the largest decentralized bank in the cryptoeconomy. Its core product is a peer-to-contract lending mechanism that enables individuals and institutions to mint and borrow a stablecoin, Dai, by locking collateral in a smart contract. Once Dai enters circulation users can freely use it to pay for goods and services or hold as long-term savings. The latter use can take advantage of Maker’s Dai Savings Rate (DSR), a simple contract that enables Dai holders to earn interest generated from the Maker system. Altogether, Maker’s lending and savings facilities function as a programmatic bank, while its stablecoin Dai functions as a digital Eurodollar – both critical infrastructure to Ethereum’s financial system given Ethereum lacks a native stable currency. Today there is over $5 billion in Dai outstanding with Maker effectively operating as a DeFi central bank.
Maker’s Value Proposition
Maker transforms the business of banking through automation and auditability. By replacing extractive middlemen with autonomous code, Maker can offer cheaper financial services to users globally, while simultaneously reducing counterparty risk. The former is enabled by using Ethereum as backend financial infrastructure, which reduces back office legal and financial costs substantially. The latter is enabled by the open-sourced nature of Maker’s code, which enables anyone to inspect all of its operations and financials anytime, anywhere.
Maker transforms the Eurodollar market through availability and programmability. Once again Ethereum provides critical infrastructure; this time as an always-on world computer that is accessible to anyone on Earth with an internet connection. Its smart contract functionality accelerates these benefits by enabling developers to trivially build global financial applications using stablecoins. Combined these attributes lead to faster product development and greater financial inclusion.
Source: Maker Technical Presentation
Although Maker has many moving parts that enable these advantages, its operations are fairly similar to that of any bank. As a business, Maker generates revenue through interest income and fees. As a currency issuer, Maker maintains Dai’s stability through a dynamic system of interest rates, collateral management, and swap facilities. As a lender, Maker manages its balance sheet through a risk underwriting process that includes backstops for absorbing credit losses. Altogether Maker is directed by an ecosystem of third party actors and delegates who operate at the direction of MKR token holders – the sole governors of the project since the dissolution of the Maker Foundation in 2021.
Maker Thesis
1) Maker is the leading decentralized bank with the potential to become one of the largest financial institutions on the planet – a “winners-take-most” multi-trillion dollar opportunity. Its stablecoin Dai is the most widely used decentralized stablecoin in the industry with its deep liquidity, integrations, and track record, enabling Maker to offer structurally cheaper credit than peers. Combined these attributes provide compounding advantages, positioning Maker to be a secular share gainer in onchain banking activity.
To understand the Maker thesis, it is essential to understand Dai. Dai is the crown jewel of the Maker system that not only positions Maker to compete in some of the largest markets in the world, but also do so successfully. As such the Maker story begins with the big picture for stablecoins.
Dai’s Potential
The global stablecoin market is one of the most attractive markets to win in the cryptoeconomy long-term given its potential to displace a meaningful share of the Global M1 and Eurodollar money supplies. The Eurodollar market is estimated to be ~$13 trillion while the M1 money supply is estimated to be ~$47 trillion, implying less than 0.001% penetration and a generational runway for stablecoins. Indeed the success of stablecoins within the cryptoeconomy has already been extraordinary, having grown at a 235% CAGR over the past 5 years, reaching over $150 billion at the time of writing. Stablecoins furthermore are the dominant transactional medium on blockchains, having won that title on Ethereum 4 years ago. They currently account for over 70% of transaction volume across all blockchains.
Stablecoins thrive today for many of the same reasons the Eurodollar market has in the decades since World War II. Both are manifestations of US dollar demand outside of the traditional US banking system. Both markets emerged, in part, as a response to capital controls and asset seizures, and both markets developed, in part, due to globalization and interest rate arbitrage. However, stablecoins take these advantages even further given their existence on public blockchains:
Speed & Accessibility – Stablecoins are natively digital; anyone in the world with an internet connection can send and receive stablecoins by creating a blockchain address
Programmability – Developers can trivially integrate stablecoins into applications, providing them with a global, highly automatable financial backend
Transparency – Stablecoin transactions are recorded on public ledgers enabling anyone to trivially audit and verify activity
Safety – Stablecoins offer stronger solvency guarantees compared to commercial bank deposits given they’re often fully reserved with higher liquidity coverage ratios
Cost – Stablecoin payments require significantly less (costly) intermediaries than bank transfers given their settlement on public blockchains
These advantages aren’t just theoretical. Stablecoins are one of the few products in the industry that have reached critical mass, achieved product-market fit, and exhibited compounding growth over time. Especially in emerging markets where they’ve found broad use in cross-border payments and as stores of value protecting against inflation. Despite the 2022 – 2023 bear market many stablecoin metrics continued to grind higher, speaking to this truth.
While decentralized stablecoins currently make up less than 5% of the total stablecoin supply, they are well positioned to continue gaining share from centralized stablecoins due to a handful of structural advantages. Most notably decentralized stablecoins offer less counterparty risk given their distributed governance, diversified collateral sources, and transparency. Decentralized stablecoins furthermore can tap into higher yielding onchain opportunities not available to centralized issuers enabling decentralized stablecoins to offer higher yields to holders. This provides a significant advantage considering most centralized stablecoins don’t pay any yield to holders onchain, largely due to regulations. Combined these advantages position decentralized stablecoins to continue growing their share of onchain activity, especially with other protocols and DAOs that appreciate their lower counterparty risk and access to higher yields (more on this later).
Maker’s Moat
As mentioned upfront, Maker is a leviathan amongst the leaders, capturing nearly 40% of all DeFi profits on Ethereum. What’s been the secret to its success? Once again the answer is Dai, which underpins all of Maker’s competitive advantages.
Dai possesses a monetary premium – it is valuable not just because of the collateral backing it or the yield it's paying, but also because it is used as money. This moneyness is critical to understand as it is the most tangible measurement of a stablecoin’s network effect and value capture potential. Moneyness can only be earned through years of building trust and utility. Trust is built by demonstrating protocol soundness throughout multiple financial cycles, while utility is built through winning sticky integrations and developing deep liquidity. The two attributes ultimately work together in a virtuous cycle that leads to compounding advantages over time.
These attributes are worth unpacking for Maker specifically. Dai boasts the strongest track record of any decentralized stablecoin having successfully navigated multiple cycles and crises in its six years of operation. This attribute is important as surviving volatility is the greatest manifestation of truth – the ultimate determinant of a protocol's soundness in a permissionless world is not its theoretical properties, but its observed properties in the wild. No other protocol comes close to Maker in this regard. Maker is Lindy.
Dai’s trustworthiness has furthermore enabled it to become the most widely integrated decentralized stablecoin in the industry with the lowest cost of capital. Dai is listed on the most exchanges, is integrated into the most third party protocols, and is available in the most off-chain applications of any decentralized stablecoin. Dai features the lowest cost of capital in large part due to its superior risk management as explained above, but also due to it having meaningful utility as money – a great sign of this is how much Dai is being used in externally owned accounts versus smart contracts, the latter being a indicator of more speculative usage. Unlike competitors that rely on token incentives to prop up adoption metrics, Maker has developed real organic demand.
The effect of these attributes is a compounding competitive advantage as Maker realizes increasing benefits to scale. With lower costs of capital, Maker is able to capture more revenue as profit, giving it greater financial breathing room to invest in sticky integrations, develop transactional use cases, and beef up its surplus buffer. Furthermore, scale provides a high degree of operating leverage as it enables Maker to realize greater capital efficiency and underwrite at a larger scale. This is the key to Maker being the cheapest source of onchain credit at scale – lower costs of capital and greater financial cushion enable Maker to undercut competitors on large scale onchain lending.
Last but not least, Dai’s monetary premium positions Maker to consolidate many adjacent sectors and become one of DeFi’s first super-apps. A few examples are as follows. As explained above, Maker’s cost of capital and scale enables it to engage in cheap large scale underwriting, potentially even becoming a bank to other onchain banks themselves. There are already strong signs of this with Maker lending into third party lending protocols like Aave, Spark, and Morpho. Furthermore, with increasingly large stablecoin reserves Maker is well positioned to be a key venue for stablecoin swaps, providing 1:1 conversion between Dai and its underlying reserves. Its deep dollar liquidity in these reserves also positions Maker to engage in large scale underwriting for Real World Assets (RWAs) as borrowers necessarily must convert borrowed Dai in centralized stablecoins that can be offramped to use offchain. Finally Maker can play a key role in bridging by launching a similar product to Circle’s CCTP for cross-chain stablecoin transfers – Maker can use its internal oracle network to mint and burn Dai across different domains (L1s and L2s) without introducing meaningful new security assumptions beyond what you already assume holding Dai.
2) At ~2x 2025E revenue, Maker is one of the most undervalued protocols in the cryptoeconomy given its industry leading earnings, best-in-class unit economics, and growing market dominance. Although Maker was penalized historically for its conservatism, its ongoing “Endgame” rollout could turn the tides as Maker evolves into a more scalable ecosystem of modular protocols. With upcoming airdrops, as well as a project rebrand and token redenomination, Maker has the potential to become one of the biggest stories of the cycle as it executes on what may be the most ambitious roadmap in DeFi’s history.
As discussed above, Maker’s secular stablecoin tailwinds, network effects, and economies of scale have enabled it to become one of the most dominant protocols in the industry. The financial results have been stunning, with Maker already run-rating at over $400M in annual revenue, surpassing every project in the industry but Ethereum, Tron, and Solana. What this means is that not only is Maker the highest fee generating protocol in the cryptoeconomy, it also blows nearly every L1 and L2 out of the water as well – most of which trade for multiples higher than Maker.
Why is Maker so successful financially? The answer is simple. Maker eats collateral and monetizes it better than anyone else. As the cryptoeconomy continues to expand, Maker continues to benefit as interest rates rise and demand for Dai accelerates. With clear value accrual to token holders in the form of buybacks, this continues to be a boon for the project.
So why has Maker traded at suppressed multiples historically? For a long time the market has viewed Maker as a sleepy DeFi dinosaur. Last cycle it sat out of all the liquidity mining games, astutely waiting the cycle out to learn what works and what doesn’t. In the moment this decision was not viewed favorably as Maker was surpassed by the far more aggressive competitor Terra, which eventually blew up and fell out of the spotlight as newer, more experimental protocols captured mindshare. The fact that Maker’s sprawling network of contributors and numerous moving parts make the project difficult to understand in totality hasn’t helped either – few are knowledgeable about Maker’s current status, let alone the implications of its Endgame roadmap.
Today however, we believe this may be changing. With last cycle’s lessons in its arsenal and fresh ideas taking center stage, Maker is now accelerating with confidence and approaching the inflection point of the S curve.
Endgame: A New Order for DeFi
Endgame is one of the most ambitious upgrades in DeFi’s history. The goal is to scale the Dai supply to $100 billion and beyond.
At a high level, Endgame is a complete overhaul of Maker’s economy that will see the project become a modular ecosystem of protocols. At the center of this vision are SubDAOs – self-sustaining projects that operate outside of Maker’s core cost structure, but are ultimately governed by Maker Core. This new system architecture aims to simplify Maker and enable it to scale more efficiently. SubDAOs can launch new products faster and in parallel, while Maker Core can slim down into a hyper-efficient minting engine for Dai. The result is faster growth, greater automation, increased decentralization, and collapsed operating costs.
The Endgame system architecture plays a major role in future proofing Maker. With Maker Core simplified into a minting module, SubDAOs will handle all the collateral onboarding. Maker Core’s role instead is to determine how much Dai to mint into each SubDAO. It does so according to a Base Rate – a unified rate that SubDAOs can borrow at set by Maker governance. This setup enables Maker to serve as general purpose infrastructure for deploying any arbitrary CDP based lending market. What this means practically is that Maker can replicate any new CDP lender such as Curve’s LLAMMA or Alchemix’s self-repaying loans as a SubDAO. The first of these lending SubDAOs is Spark, which has quickly grown into one of the largest lenders on Ethereum driven by its ability to offer cheaper and more consistent rates than peers.
SubDAOs also enable Maker to expand into new verticals that would otherwise be outside its product roadmap. Already there are plans for Maker to launch a new bridge for transporting Dai across Ethereum’s L2 ecosystem, with plans to support L1s later on. Similarly, Maker plans to spin out its RWA operations into two SubDAOs (one of which will be Spark) that will concentrate on public credit, private credit, and tokenization. While not all SubDAOs will lead directly to Dai generation (some for example will be purely administrative, while others will be purely user experience and branding focused), all will be directly integrated with Maker both through governance and through new tokeneconomic arrangements that involve SubDAOs and Maker Core accumulating each others’ tokens. More concretely, Maker has full technical control over SubDAO governance (including their treasuries), with veto rights over SubDAO decisions. Its control however is bound by the Maker constitution and not meant to get involved in the minutiae of SubDAO operations.
Source: Steakhouse Financial
In the coming months Endgame will kick into high gear as “Launch Season” begins. The most imminent changes will be Maker’s rebrand & token redenomination, Spark’s token launch, and Maker’s new bridge release. The upcoming rebrand may breathe new life into the project by better communicating Maker’s new vision, while the 24,000:1 token redenomination will make Maker more accessible to retail investors who continue to demonstrate a significant unit bias. Concurrently Spark will airdrop its highly anticipated governance token SPK that may not only create a wealth effect across the ecosystem, but also incentivize further Dai generation as SPK yield farming begins. Last but not least, the new Maker bridge will provide a much needed boost to Dai’s adoption on Ethereum L2s, where all the new growth in the Ethereum ecosystem is taking place.
In the months following, Endgame’s rollout may only accelerate as more SubDAOs launch alongside Maker’s new Lockstake Engine (LSE) going live. With a total of six SubDAOs planning to launch within the next 6 – 12 months, each allocating 25% of their supply to farmers in the first year, it's very possible MKR and Dai (more specifically the rebranded versions) could receive upwards of 10 figures in annual incentives. While the majority of incentives will go to stablecoin farmers, governance token holders will be able to receive a significant portion of the rewards through the Lockstake Engine – a contract that enables users to lock their governance tokens in exchange for 30% of all protocol surplus income or 30% of annual SubDAO token emissions, subject to a 15% exit fee upon withdrawal.
If all the above isn’t enough, Endgame also features a handful of transformative but further out products that provide additional option value. In fact, Endgame plans so far out that it even includes a process for free-floating Dai, should macroeconomic conditions or regulatory actions warrant it. In any case, at the top of the list of transformative products is Maker Chain – a standalone blockchain that will contain the backend of Maker Core and SubDAOs, and connect to other blockchains using Maker’s new bridging system. While the details of the chain are still fuzzy, the prospect of Maker instituting such a change could provide great narrative fuel in the years leading into its launch. Perhaps equally as exciting is Maker’s push to integrate Artificial Intelligence (AI). As Maker’s role shifts more towards becoming a minting engine and its SubDAO ecosystem expands, automation will become a bigger priority. Maker’s founder, Rune ultimately envisions an Endgame governance system where the decisions of hundreds of SubDAOs filter down to a handful of AI models that assist (or perhaps are even the deciding factor) in the decision-making process. The end goal is to become an AI-controlled onchain bank, with interest parameters and asset liability management increasingly being handled by verifiable off-chain algorithms (ZKML).
3) Maker is primed to finance Ethereum’s economic boom – a multi-billion dollar fee opportunity that could yield a $40 billion valuation for the project. Most notably this cycle, Maker can play a critical role in the staking, restaking, and structured product economies by providing the cheapest source of financing available onchain. Indeed, with its industry leading pricing power, Maker may very well capture more fees than the end protocols it’s financing, absorbing the lion’s share of DeFi profits this cycle. By passing a portion of these fees to Dai holders through the Dai Savings Rate, Maker can supercharge Dai’s growth, win the onchain economy, and gain share from centralized stablecoins
The cryptoeconomy is once again booming, and with Ethereum in an economic expansion, Maker has naturally found favorable tailwinds. Finance after all is cyclical – as the economy expands, so too does demand for credit. As it has done since launch, Maker services this rising demand by issuing Dai loans against large collateral assets like ETH, stETH, and WBTC. These assets, more or less on their own, were enough to get the Dai supply to $10 billion at the peak of 2021.
While the above dynamic alone would be enough to make the Maker story exciting, there are two developments in the Ethereum economy that are poised to expand Maker’s potential collateral base substantially. Those are the rise of restaking and the rise of structured products. The former is being pioneered by Eigen Layer which is creating a marketplace for economic security using ETH collateral. The latter is being pioneered by Ethena which is tokenizing basis trading – its first product USDe is a yield-bearing delta-neutral position created by longing stETH while shorting ETH on a perpetual swaps exchange. Combined we believe these products could offer upwards of $10 billion in additional collateral for Maker to monetize at extremely favorable rates.
The two are worth unpacking more.
Eigen Layer
Eigen Layer is the most highly anticipated launch on Ethereum in years. While shared security as a primitive is not new, having been pioneered by Cosmos and Polkadot in the past, the prospect of tapping into Ethereum’s massive $100 billion staking economy is uniquely exciting. Accordingly, there are well over 20 projects lining up to launch with shared security in the coming months. These rollouts are notable as they will likely all launch with heavy incentives for restakers, turning Ethereum’s staking economy into a giant yield farm.
As with any yield farm there will be plenty of speculators looking to juice their returns with leverage, creating a large opportunity for Maker. Maker’s position as the cheapest financing source onchain has already enabled it to be the largest underwriter of liquid staking positions, with 13% of all stETH used as collateral in Maker and Spark (borrowing is the most popular use for stETH onchain). This product has been so successful that Maker generates as much revenue from the 13% of the stETH supply it lends against as Lido does on the entire stETH supply. We expect the uses for liquid restaking tokens will be similar, as will the disproportionate financial outcomes for Maker be as well.
Ethena
Ethena similarly was a highly anticipated launch. While the cash-and-carry trade isn’t new, having a long history in both traditional finance and the cryptoeconomy, its tokenization onchain has democratized it to all Ethereum users. In the three months since it went live, Ethena quickly amassed $2 billion in AUM driven by elevated funding rates on perpetual swaps as well as a highly successful rewards program.
With Ethena yields having ranged between 20% - 120% APY on what is ”close to a risk-free bet” there is unsurprisingly an enormous amount of demand from users to lever up on the trade – especially with the added bonus of ENA (Ethena’s governance token) rewards. Maker has stepped in to service this demand offering a $1 billion line of credit through Spark’s newly launched Morpho vaults. The vaults are already earning Maker $70M annualized on just $300 million in Dai deployed, given the elevated interest rates users are paying to borrow.
In the long run we expect Maker to capture the lump sum of value from the tokenized basis trading supply chain as the dominant source of credit. Once Ethena rewards dry up we expect staking participation to increase, leaving the protocol with a small take rate on the product. Ethena after all is essentially a single strategy hedge fund performing one of the easiest trades in the industry. In contrast we expect users will continue to want leverage on the trade, providing strong value capture for Maker as the most competitive lender onchain.
Supercharging Dai Growth
With plenty of sources to generate new Dai demand and an expanding cryptoeconomy, Maker is well positioned to reach ~$2 billion in run-rate revenue this cycle – more than every project in the industry but Bitcoin and Ethereum. This not only should provide ample fuel to supercharge DSR growth and accelerate Dai adoption, but also potentially yield a $40 billion valuation for Maker. How much should a business generating ~$2 billion in revenue, growing 100%+ annually, with 50% profit margins be worth?
As mentioned above, one of the reasons Dai is well positioned to gain share from centralized stablecoins is its ability to provide yield and tap onchain credit opportunities. As onchain credit opportunities provide increasingly attractive yields, the DSR can provide structurally higher rates than its centralized counterparts, most of which do not provide any yield. Maker’s DSR is already yielding 13% in the early innings of the Ethena integration and before the launch of Eigen Layer. With Ethena borrow rates already above 40% and liquid restaking borrow rates likely to be elevated as well, we expect the DSR will remain in the double digit range for the remainder of this cycle. If double digit yields were enough to drive Terra’s UST supply to nearly $19 billion last cycle, how high could double digit yields drive Dai – an over-collateralized, more sustainable stablecoin?
The DSR is already driving meaningful Dai adoption onchain with third party protocols integrating it on the backend. Both Blast and Gnosis deposit all the Dai in their rollup bridges into Maker’s DSR in order to provide additional yield for users. Decentralized derivative exchange Aevo similarly deposits Dai used as collateral into the DSR to provide traders greater capital efficiency. We expect this trend of Maker as the savings backend for third party protocols to accelerate as DSR rates rise and protocols continue to seek a competitive edge. In fact, we believe integrating yield on the backend of your product will be table stakes in the coming years.
Finally, as mentioned in the Endgame section, SubDAO farming could be a massive accelerant for Dai growth. With a total of six SubDAOs planning to launch within the next 6 – 12 months, each allocating 25% of their supply to farmers in the first year, it's very possible Dai (more specifically its rebranded counterpart) could receive upwards of 10 figures in annual incentives. To illustrate, Maker’s first SubDAO Spark could launch at a $2.5 billion - $5 billion valuation, providing $500 million – $1 billion (25% of FDV) in incentives to Dai holders. This alone could incentivize an incremental $2.5 billion – $5 billion in Dai creation. Should any additional SubDAOs launch with similar fervor, there could very well be enough incentives to generate an additional $10+ billion of Dai from this farming alone. Moreover, SubDAO farming incentives may continue to grow stronger over time as more launch and the concept is proven out.
The Leviathan of DeFi
“Maker must again lead the industry” – Rune Christensen, “The Endgame Plan parts 1&2”
What does it take for a protocol to reach a self-sustaining equilibrium? After seeing Maker fall into “economic stasis” last cycle, Rune set out to find the answer.
In a sector rife with complacency after its first leg of growth, Rune communicated a long-term vision for DeFi with Maker at the center of it. The spirit was to get Maker to the protocol equivalent of what Vitalik describes as “Functional Escape Velocity” – Maker would become the site of stability and maintenance, with large changes only in emergencies, while its SubDAOs would be the site of ongoing innovation. Maker would furthermore become the ultimate authority of this financial system, enabling greater safety for its operations. The result would be a maximally resilient stablecoin that would still be capable of pushing the frontier and accelerating adoption. This multi-year vision is now the north star for Maker and potentially the entire DeFi ecosystem for years to come.
With most if the old money out, and most of the new money bought into the new vision, Maker is in as exciting a place as it's ever been. The groundwork is laid for the next few years, providing Maker a legitimate shot to fulfill its ultimate goal of creating the holy grail of cryptocurrency – a monetary asset that is stable, scalable, and maximally resilient to corruption and failure.
For a long time Maker was seen as a dinosaur protocol in an unexciting sector. Today this is no more as the Endgame Era begins and the money making machine kicks into higher gear.
The path to $100 billion is within sight.
Maker is again leading the industry.
Important Legal Notices
While this article is intended to express the views held by Syncracy Operational Management LLC (“Syncracy”), nothing in this article is intended to constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite, or otherwise acquire or dispose of any security, including any interest in any private investment fund managed by Syncracy. Any such offer may only be made pursuant to a formal confidential private placement memorandum of any such fund, which may be furnished to potential investors upon request and which will contain important information to be considered in connection with any such investment, including risk factors associated with making any investment in any such fund. Further, nothing in this correspondence is, or is intended to be treated as, investment or tax advice. Each recipient should consult their own legal, tax and other professional advisors in connection with investment decisions. Any investment involves the risk of a loss, including the risk of a complete loss.
Syncracy’s views with respect to any investment, including MKR, could change at any time. Further, while Syncracy currently holds a long position in MKR, Syncracy will not provide any recipient of this article with notice if Syncracy unwinds its position or its views change.