MakerDAO, ethereum's first defi lending protocol, has captured a 52% share of the eth lending market.
The milestone was highlighted in Steakhouse Financial's MakerDAO Protocol Economics Report for January 2024, which revealed a 22% increase in eth lending through crypto vaults in Spark – spark.
Much of MakerDAO's market dominance over the past year can be attributed to Spark, which has provided high liquidity and competitive borrowing rates for DAI, the largest decentralized stablecoin. Spark is now the third largest defi lending protocol with respect to total value locked (TVL).
The report details MakerDAO's financial performance, highlighting gross monthly revenue of 20.8 million DAI in January 2024. Cryptocurrency vaults were a major source of income, contributing 10.3 million DAI.
Income from real world assets (RWA) also played a key role, adding 10.5 million DAI to the total despite a 14% decrease in RWA exposure compared to December 2023.
The shift towards cryptocurrency-backed loans treasure letters has been vital to take advantage of the market rebound.
MakerDAO continues to evolve its governance structure through the Endgame Plan, aiming to further decentralize decision-making by introducing SubDAO. Each SubDAO will have its governance token, process and workforce, marking a significant step towards a more decentralized and efficient ecosystem.