MakerDAO (MKR), Ethereum's main decentralized economy protocol, has reached all-time highs in the locked total value in lockers all the time.

According to Defipulse, the sealed safety value in MakerDAO's cellar is now almost $ 1 billion after a sharp spike from July 22nd.

Most of the growth is due to the sharp rise in the price of ether (ETH), which remains the most widely used safe connection for capturing Dai (DAI). Since July 22, Maker's closed ETH volume has increased by nearly 13% and the US dollar has appreciated almost 60%.

The Ether's hike is not a coincidence as the Maker community voted on two separate proposals to raise the debt ceiling for ETH on July 17-20. Collectively, they increased the amount of DAI that can be stamped with ETH from 160 million. Up to 220 million.

According to Daistats.com, the new roof is already almost full, with 213 Million DAI now mined with Ether.

Where does the request come from?
Since around July 2, DAI has become the asset of choice to work with the token COMP. As Cointelegraph mentioned earlier, more than $ 800 million in DAI was borrowed simultaneously, even when the total DAI bid was just $ 200 million.

The discrepancy between the two numbers is due to recursive borrowing. COMP farmers will connect DAI to the boat, then borrow 75% of the tokens provided and deliver them again. Repeating this process enough times leads to a nearly 3-fold increase in leverage, which increases the total cost of the joints, which are greatly limited in the process.

Once the leverage process is over, the only way to get more DAI without affecting the market price is to lower it. With 0% of Maker Credit, ETH is currently the most effective vehicle for this purpose. While not all new DAIs are likely to be minted to the boat, it is the largest stable destination.

The actual amount of DAI currently blocked is $ 139.6 million. The United States, which can be obtained by comparing the maker's “generalization” function, which represents the DAI savings rate, with the title of the DAI compound symbol in Etherscan. Liquidity pools for other major DeFi projects are $ 23 million.

Metal pitfalls total cost unlocked
While the TVL survey is widely available in the DeFi community, it largely does not provide an accurate picture of use. With incentives to extract cash, mindless activities such as borrowing the same assets as collateral suddenly become profitable. In fact, this cannot be done with the standard composite interface.

In a report published by DappRadar, Ilya Abugov showed that only 30 portfolios represent 65% of the offer and 73% of the loan:

“While the industry may focus on TVL accounts, we can see that a few whale growers can create the illusion that they are energetic.”

Source: CoinTelegraph

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