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Midas to Unveil stUSD Token, Linking U.S. Treasuries with DeFi Platforms

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In an upcoming convergence between traditional finance and the ever-expanding realm of cryptocurrencies, Midas, a stablecoin backed entirely by U.S. Treasuries, is set to introduce its stUSD token across various decentralized finance (DeFi) platforms like MakerDAO, Uniswap, and Aave in the forthcoming weeks. This revelation was disclosed in a presentation deck obtained by CoinDesk.

The Midas project, aiming to establish a solid footing in the DeFi space, is strategically procuring U.S. Treasury bonds through asset management giant BlackRock. The procurement entry is facilitated using Circle Internet Financial’s USDC stablecoin, as detailed in the presentation. Additionally, institutional partners like Fireblocks and Coinfirm are involved, providing custody technology and blockchain analytics support, respectively.

Tokenizing Treasuries: Midas’ Game Plan

The motivation behind this move stems from the substantially higher yields observed in traditional financial assets like U.S. Treasuries in comparison to the returns on conventional DeFi products. Midas aims to tokenize these traditional financial assets, making them seamlessly available within the DeFi ecosystem, as articulated in their presentation.

This strategic move resonates with the current industry trend of tokenizing real-world assets, particularly attracting attention from traditional finance entities. The focus on tokenizing Treasuries has seen significant growth in 2023, prompting the Midas project to tap into this potential.

Notably, the Midas team comprises industry figures like Fabrice Grinda, the founder and executive chairman of Global Technology Acquisition Corp. (GTAC), and Dennis Dinkelmeyer, the vice president of GTAC.

The stUSD token, being 100% backed by U.S. Treasuries and issued under German law as a debt security, emphasizes the adherence to regulatory compliance and legal frameworks. Midas highlights its compliance with European Securities Regulation and Anti-Money Laundering laws, further ensuring that the token’s transfer embodies the transfer of underlying legal rights.

Despite these advancements, neither Grinda nor Dinkelmeyer responded to requests for comment as of press time. The imminent integration of Midas into the DeFi space represents a pivotal step in bridging the gap between traditional finance and the evolving landscape of decentralized finance.

Related Reading | Shibarium Surges 3000%, Ushering in New Era for SHIB 

Solana Sparks Unity: Crypto Leaders Advocate Collaboration For Brighter Future

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Anatoly Yakovenko, the visionary founder of Solana, took to Twitter to rally his community and advocate for unity among blockchain enthusiasts. Amidst the ongoing debates and rivalries in the crypto space, Yakovenko’s message serves as a beacon of collaboration.

Yakovenko began his Twitter thread by addressing a recent development involving MakerDAO and Solana’s technology. He emphasized that MakerDAO, considering Solana’s technology, should be viewed as a victory for open-source principles.

In his tweet, Yakovenko underscored that this decision had nothing to do with Solana’s mainnet or direct competition between Solana and Ethereum. He stated:

I really hope that people in the Solana community don’t use this as some cudgel to attack Ethereum.

This unexpected show of support for Ethereum from a prominent SOL figure struck a chord within the cryptocurrency community, sparking conversations about the importance of collaborative efforts and the shared objective of advancing blockchain technology.

Notably, Yakovenko was not alone in advocating unity in the crypto sphere. Rune Christensen, the co-founder of MakerDAO, also weighed in on the matter with a message of unity and cooperation. 

Christensen’s tweet resonated with Yakovenko’s sentiments, as he stated:

Guys… Ethereum is great. SOL is great. Cosmos is great, etc. All chains are increasingly interconnected and synergize to form a global multichain network economy. Tribalist incels (of every flavor) are in the wrong decade, go back to Bitcoin and let the rest of us build.

Christensen’s message echoed the idea that cryptocurrencies are not competing but rather coexist in a vast and interconnected ecosystem, each with its unique strengths contributing to the greater blockchain revolution.

RNDR Migrates To Solana For Ambitious Projects

Furthermore, Rendoshi Tokamoto, a notable figure in the crypto community and associated with RNDR (Render Token), also had an important announcement related to SOL. 

Tokamoto explained why RNDR is migrating to Solana, highlighting the network’s capabilities to provide real-time, rendered, interactive holographic streaming, particularly on augmented reality (AR) devices. 

He pointed out that the Rust programming language and Solana offer the speed, cost-efficiency, and flexibility needed to achieve this ambitious goal.

However, the statements by Yakovenko, Christensen, and Tokamoto signify a remarkable shift in the cryptocurrency world, where leaders from various blockchain projects openly advocate for collaboration and highlight the interdependence of blockchain ecosystems.

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Maker’s MKR Meteoric Surge: $1B Inflows, 8% DAI Yield, & DeFi’s Ripple Effect

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In a dynamic market, Maker’s governance token, $MKR, has emerged as a shining star, witnessing an astonishing price surge of over 100% in the last three months. Notably, Intotheblock’s data analysis has revealed substantial capital inflows into the wallets of prominent MKR holders, indicating robust buying activity in the crypto sphere.

MakerDAO’s Enhancements Attract Billions

In a comprehensive report released this week, Intotheblock has delved deep into the realm of DeFi, spotlighting one of its pioneering protocols, MakerDAO. The analysis revolves around the protocol’s recent enhancements, propelling a staggering influx of nearly $1 billion in less than a week. 

The surge is driven by DAI’s growth and MKR token accumulation, potentially benefiting the wider crypto space. Regarding blockchains, Bitcoin fees rose 24.5%, reasons unclear, while Ethereum fees fell 21.2% due to lower volatility. Crypto-wise, Bitcoin, and Ether saw $50M outflows, signaling moderate trading.

The pièce de résistance of MakerDAO’s resurgence is its 8% stablecoin yield, rekindling the DeFi flame. Notably, the protocol’s stablecoin, DAI, has gained the capability to earn the DAI Savings Rate (DSR), which recently surged to 8%. 

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Fueled by Maker’s revenues, a substantial portion stemming from US treasuries collateral, this lucrative yield has far-reaching implications for the protocol and potentially beyond.

Furthermore, the rise of real-world assets, such as treasuries, within DeFi is spotlighted. A substantial upswing in DAI capitalizing on the DSR, nearly $1 billion in a single week, coincided with a corresponding rise in DAI supply at a three-month zenith. 

The upward trend of real-world asset integration in DeFi is further exemplified by protocols like Ondo Finance, securing $164 million in tokenized treasury deposits.

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The report doesn’t neglect DAI’s resurgence as well. With volumes reaching heights unseen since the Silicon Valley Bank collapse, the potential to earn yield atop this blue-chip stablecoin is now generating ripples of positivity across DeFi.

Lastly, Maker’s governance token, MKR, has exhibited remarkable growth, doubling in value over a mere three months. The significant inflow of MKR into the wallets of major holders underscores a robust appetite for the token, coinciding with a 35% price surge in the past month alone.

The report highlights a pivotal moment last July, linking the spike in large holders’ netflows with Maker’s founder, Rune, who acquired a hefty $24 million worth of MKR tokens over a year.

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Maker (MKR) Soars With A Whopping 45% Weekly Surge – Here’s Why

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Altcoin Maker (MKR) has been on a remarkable bull run in recent days, witnessing an astounding 45% surge over the course of just one week. This impressive performance has placed MKR at the top of the weekly gainers’ list, outshining even the major cryptocurrencies.

According to CoinGecko data, MKR’s price has been steadily climbing, with a notable 42% gain among top performers within the last 30 days. However, in the daily chart, there has been a minor setback of about 3.60%, currently trading at $986.93.

MKR 7D graph coinmarketcap
Source: Coinmarketcap

Throughout June, MKR experienced two significant price rallies. On July 1, it surged 21%, soaring past $830 from the previous day’s $687. The token’s value further increased by 8% on July 3, reaching a 3-month high of $929.87, an achievement not seen since March.

Market sentiment appears bullish, corroborated by various technical indicators. The Fear & Greed Index stands at 29.19, signifying extreme fear among investors. 

Nevertheless, on July 4, 2023, most technical analysis indicators leaned towards a bullish outlook, although some hinted at bearish signals, indicating an overall positive sentiment for MKR price predictions.

Based on the current prediction, the value of Maker is anticipated to surge by an impressive 112.21% by the end of July, potentially reaching around $2,091.47. However, the token is presently trading below the 200 simple moving average, and the 50-day simple moving average shows a buy signal.

Further analysis suggests that the 200-day SMA may soon drop, projecting a potential price decrease to $687.52 by the end of December. One essential indicator to watch is the Relative Strength Index (RSI), currently sitting at an undisclosed value, which signals the potential for overselling or overbuying of the cryptocurrency.

Well, Maker (MKR) has seen an incredible rally, outperforming major players in the market. While technical indicators paint a bullish picture, investors should stay vigilant as various factors can influence MKR’s future trajectory.

Maker (MKR) Price Driving Factor

The recent surge in MKR price can be attributed to the proposed multichain strategy of Spark Protocol, a move aimed at expanding its reach and deployment across different blockchain networks. 

On June 30, MakerDAO proposed the Spark Protocol Multichain Strategy, building upon the previous strategy introduced by PECU and continuing the shift of work away from Maker Core.

Phoenix Labs, the driving force behind the proposal, firmly believes that the path to growth lies in reaching out to users on Layer 2 solutions (L2s) and other chains. 

They have put forth a comprehensive framework for expanding into compatible chains, with a focus on strong business cases, scalability, strategic value, and security considerations.

The proposed strategy follows a phased rollout approach to enhance parallelization. Phase 1, designed to be entirely permissionless, involves deploying a fresh instance of Spark Lend on a remote chain in coordination with the chain’s developer team. 

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Source: MakerDAO Proposal

Borrow rates will be set manually, and liquidity seeding is encouraged to simulate user demand. The governance relay, technical requirements, and compatibility with cross-chain support are critical considerations during this phase.

Phase 2, referred to as Spark Bridge Deploy, centers around activating the cross-chain Conduit module, allowing AllocatorDAOs to deposit and withdraw funds from the Spark Lend instance. 

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The Spark Bridge, serving as the successor to dss-bridge, facilitates smooth transitions and utilizes the most liquid version of DAI through existing token bridges. 

Additionally, the Spark Bridge’s technical requirements are yet to be defined, and assessments of domains and collaterals will be published to assist MKR holders in their decision-making process.

Related Reading | Ethereum’s Decentralized Staking Revolution: ssv.network Launches Mainnet

MakerDAO Eyes $1.25B US Treasury Investment Boost For PSM Revenue

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MakerDAO is considering a proposal to increase its US treasury bond investments from $500 million to $1.25 billion. This proposal aims to take advantage of the current yield environment and generate further revenue for Maker’s PSM assets. 

The investment strategy will be implemented over a six-month period using a ladder strategy that will mature every two weeks. The proposal is in line with MIP105 calculations for RWA allocation towards the Viridian Cluster.

If the proposal is approved, US treasuries will be purchased in maturity slots over a six-month period. This will result in 12 “slots” over the six months, with bi-weekly maturity slots for a total of $62.5 million per slot. 

Expected Benefits Of MakerDAO’s Proposal

After the US treasuries mature every two weeks, the net yield amount will be transmitted to the surplus buffer. The proposal includes a legal structure that mitigates any single-entity exposure concerns. 

The debt ceiling increase will be deployed under the same terms and transaction mechanisms as set out and approved in MIP65. Also, the proposed debt ceiling increase of 750M for MIP65 will be calculated bi-weekly and adjusted accordingly to ensure that it is in line with MIP105 allocations.

The proposed asset strategy is a simple and transparent solution. The ladder strategy will allow for inherent liquidity in the US treasuries as they mature. The large liquid market will enable quick and low-cost entry or exit of capital. Additionally, the strategy has strong yield characteristics with the highest possible credit rating. 

The asset strategy implementation partner will be Sygnum Bank, which will implement the asset strategy under an execution mandate set out in a MakerDAO resolution instruction.

This proposal aims to balance Maker’s portfolio with yield and risk considerations, and the fact that the investment will be in a flexible and liquid manner can accommodate material adjustments and upgrades as may be required under prevailing, relevant Maker RWA-related policies. 

The proposal is expected to be beneficial to MakerDAO, and the set of MakerDAO resolution instructions required to implement the specific deployment will be released shortly ahead of a Debt Ceiling Increase Poll.

Related Reading |  Ethereum Founder Sells Billions In Free Tokens: Financial Planning Or Market Impact?

MakerDAO Co-Founder Repositions Crypto Portfolio With 2,788 MKR Purchase 

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The co-founder of MakerDAO, Rune Christensen, has been making some significant moves in the cryptocurrency market, selling Lido DAO tokens and purchasing Maker tokens in what appears to be a calculated repositioning of his cryptocurrency portfolio.

According to reports, Rune sold 760,000 LDO tokens worth $1.9 million and bought 2,788 MKR tokens worth $2.62 million on the night of March 5th, 2023. It follows a sale of 1.43 million LDO and a purchase of 4,171 MKR just four days prior.

BitcoinEmber, a cryptocurrency analytics firm, has been closely tracking Rune’s activity in the market. Their data shows that since November 4th, 2022, Rune has sold 11.378 million LDO tokens and bought 24,620 MKR tokens, with an average selling price of $2.6 for LDO and an average buying price of $940 for MKR.

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MakerDAO Co-Founder Repositions Crypto Portfolio With 2,788 MKR Purchase  8

Rune’s purchases of MKR tokens were made through 0x and bring his total holdings of MKR to 108,893 tokens, worth approximately $100 million and accounting for 11% of the total MKR tokens in circulation.

However, Rune’s recent moves suggest confidence in the future of MakerDAO and the wider cryptocurrency market. By selling LDO and buying MKR, he may be repositioning his cryptocurrency holdings to take advantage of market trends.

Maker (MKR) Leads Impressive Market Uptrend in 2023

The year 2023 has begun with a bang. After a prolonged period of uncertainty and low prices, the market has finally begun to show signs of life. The past few weeks have been particularly exciting for investors, as some coins have been performing exceptionally well. One of these is Maker (MKR), which has been leading the charge with its impressive price increases.

Over the last month, Maker (MKR) has seen a substantial rise in its price, growing by a staggering 34.0%. This growth has been driven by the overall market uptrend, which has seen many cryptocurrencies experience significant gains. However, Maker (MKR) has been particularly successful, outperforming many of its peers.

In fact, even during the recent bearish trend in the market, Maker (MKR) managed to make impressive gains. As reported by TronWeekly, Maker (MKR) emerged as the weekly gainer, experiencing a noteworthy 26% growth in the weekly chart. This is a significant achievement, considering the challenging conditions that many other cryptocurrencies faced during this period.

MKR 7D graph coinmarketcap 1
Source: CoinMarketcap

As of now, Maker (MKR) is trading at $930.35, showing a 2.59% increase in the past 24 hours and an impressive 20% increase in the weekly chart. Moreover, there has been a notable 88.93% surge in the 24-hour trading volume, which indicates a high level of investor interest and confidence in the cryptocurrency.

Maker (MKR) Emerges Victorious Amidst Market Bloodbath, 30% Weekly Rise

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The cryptocurrency market has recently faced a tumultuous time, with major currencies experiencing significant losses in a matter of hours. However, amidst this chaos, Maker (MKR) coin has emerged as the sole winner, experiencing a noteworthy 29.42% growth in the weekly chart.

The overall cryptocurrency market faced a severe downturn, losing as much as $50 billion in market capitalization in just one hour. As market capitalization dropped, currencies such as Bitcoin (BTC) and Ethereum (ETH) saw their values plummet by over 5%. 

BTC 1D graph coinmarketcap 9
Source: CoinMarketcap

The cause of this sudden drop can be attributed to several unfavorable events, including the Silvergate bank crash and Binance FUD. As a result, the crypto market’s total cap went from $1.07 trillion to $1.02 trillion earlier today.

Despite this bearish trend in the cryptocurrency market, MKR was the only currency that showed bullish momentum. While leading currencies such as BTC and ETH were experiencing a downward trend, MKR was making significant gains. 

MKR 1D graph coinmarketcap
Source: CoinMarketcap

According to the data from CoinMarketcap, currently trading at $932.97, MKR showed a 5% increase in the last 24 hours, outperforming the rest of the top 100 cryptocurrencies.

Maker (MKR) Price Driving Factor

One of the factors that contributed to MKR’s rise was the recent announcement by MakerDAO that deployed lower fees for the RETH-A vault through the latest Executive Vote. 

The stability fee was reduced from 1.5% to 0.5%, and the debt ceiling was increased from 5 million DAI to 10 million DAI. Additionally, the current liquidation ratio stands at 170%.

The decentralized finance (DeFi) platform, has recently seen significant developments. In February alone, the platform witnessed a number of noteworthy happenings.

Firstly, OlympusDAO approved and executed the largest DSR deposit to date with over 70 million DAI, earning a fixed 1% directly streamed from the core of the Maker Protocol.

Moreover, MakerDAO made a notable presence at the EBlockchainCon event, with MakerGrowth contributing valuable insights during discussions on real-world assets development within the DeFi industry.

According to the latest official report on real-world assets, MakerDAO generated $2.3 million in fees from its various RWA deployments, with the majority generated by the investment of $500 million in US Treasury short-term bond ETFs.

In addition, the Aave D3M was reactivated with an initial debt ceiling of 5 million DAI and a target borrowing rate of 2%. The Maker Protocol is now supplying direct liquidity to the two largest DeFi lending protocols through a wholesale credit line in DAI.

However, these developments demonstrate MakerDAO’s commitment to innovation and growth within the DeFi industry.

Related Reading | Bitcoin Needs To Breach $25k for Risk-Asset Revival, Says Bloomberg Strategist

  TMS Network (TMSN) Makes Waves in the Crypto World While MakerDAO Integrates Chainlink (LINK) Automation To Enhance DAI’s Financial Stability and The Graph’s (GRT) Token Doubles in 24 Hours

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The crypto world is buzzing with exciting news from different corners. MakerDAO is integrating with Chainlink (LINK) to enhance the stability of DAI, while The Graph’s (GRT) token has nearly doubled its value in 24 hours, and the new player in the crypto space, TMS Network (TMSN), is making waves. In this article, we’ll explore all three developments, and assess why TMS Network (TMSN) is the crypto community’s new darling.

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  TMS Network (TMSN) Makes Waves in the Crypto World While MakerDAO Integrates Chainlink (LINK) Automation To Enhance DAI's Financial Stability and The Graph's (GRT) Token Doubles in 24 Hours 13

  Integration of Chainlink (LINK) into MakerDAO’s keeper system brings concerns over complexity and security

While the integration of Chainlink (LINK) into MakerDAO’s Keeper system is seen as a positive move, there are some disadvantages to this integration. One of the biggest concerns of  Chainlink (LINK) is that the increased complexity of the underlying infrastructure required for the integration of traditional financial institutions with MakerDAO may make it more difficult for users to understand how the system works. This could potentially lead to a lack of trust in the technology and the platform, as users may not be comfortable with the complex system behind the  Chainlink (LINK) technology. Another potential disadvantage is the security of the system of Chainlink (LINK). With the integration of Chainlink (LINK), there may be an increased risk of cyberattacks and hacking. This could result in the loss of funds for users, and cause significant damage to the reputation of Chainlink (LINK) platform.

  The Graph’s (GRT) recent token surge raises concerns over market correction and understanding of technology

The recent surge in The Graph’s (GRT) token is exciting, but it is important to consider the potential drawbacks of such a significant increase in value. One of the biggest concerns of The Graph (GRT) is the risk of a market correction, which could result in a rapid decline in the value of the token. This could lead to significant losses for investors, and cause damage to the reputation of The Graph (GRT). Another potential drawback is the lack of understanding of the technology behind The Graph (GRT). As the technology is complex, it may be difficult for users to fully understand how it works, to ensure they use it effectively. This could lead to a lack of trust in The Graph (GRT), which can negatively impact its success.

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  TMS Network (TMSN) Makes Waves in the Crypto World While MakerDAO Integrates Chainlink (LINK) Automation To Enhance DAI's Financial Stability and The Graph's (GRT) Token Doubles in 24 Hours 14

  TMS Network (TMSN) emerges as new player in crypto space with decentralized P2P platform

In contrast to Chainlink (LINK) and The Graph (GRT), TMS Network (TMSN) is the new player in the crypto space that has been making waves and capturing the attention of the crypto community. TMS Network (TMSN) offers a decentralized platform that enables peer-to-peer transactions, enabling users to transact directly with each other without the need for intermediaries. The platform is built on blockchain technology and is designed to be secure, fast, and user-friendly. TMS Network (TMSN) has been praised for its unique approach to decentralized finance, which has the potential to disrupt traditional financial systems and offer a more equitable and accessible system for the community. TMS Network (TMSN) is also committed to promoting financial literacy and education, as well as encouraging adoption of decentralized finance among individuals and businesses. TMS Network (TMSN) has a growing community of users and developers who are working together to create a more transparent, secure, and equitable financial system.

  Conclusion

In conclusion, TMS Network (TMSN) is the crypto community’s new favorite, making waves with its innovative approach to decentralized finance. Its commitment to promoting financial literacy, education, and the adoption of decentralized finance is commendable, and sets it apart from other crypto projects like Chainlink (LINK) and The Graph (GRT).

Maker (MKR) Soars With 300% Spike in Trading Volume Fueled by Venom’s Partnership

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In the world of cryptocurrency, Maker (MKR) is making waves. The decentralized platform is seeing a bullish momentum in trading volume, with a surge of 291% following its recent collaboration with Venom, a blockchain ecosystem, and VC firm.

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Source: CoinMarketcap

The partnership with DAO Maker, a well-known blockchain growth solutions provider, has solidified Maker’s position in the market as a leading player in the crypto space. 

With DAO Maker’s reputation as its IDO launchpad for cryptocurrency investments, this long-term strategic and infrastructure collaboration is poised to bring even greater success to Maker in the near future.

According to the data from CoinMarketcap, the token was trading at $776.69 earlier today, and it is now trading at $743, with significant gains both on a daily and weekly basis. In the last 24 hours, MKR rose about 10%, and 12% in the previous seven days. 

MAR
Source: CoinMarketcap

The upward trend continued, with the token experiencing over 14.5% gains in the past two weeks, rising from $655.17 to a high of $815.77 on February 8th, as per the data from CoinGecko.

Despite some hiccups, MKR is determined to maintain its momentum. The token is struggling to stay above the support level, with the upside trend potentially halting near $850. However, if the market takes a downward turn, the downside trend of MKR is expected to stop near $550.

MKRUSDT 2023 02 13 22 39 27
Source: Tradingview

Furthermore, there has been a notable rise in the value of the DAO Maker (DAO) coin, as evidenced by its upward trend and significant increases, according to CoinMarketCap data. Over a daily period, DAO has increased by approximately 3%, and over a seven-day period, it has risen by 12%. Additionally, the token’s 24-hour trading volume has demonstrated a bullish momentum, with an impressive 500% increase.

image 46
Source: CoinMarketcap

Venom & DAO Maker Strike Strategic Partnership for Web3 Incubation

Abu Dhabi-based Venom Foundation has joined forces with DAO Maker, a prominent blockchain growth solutions provider, to incubate promising Web3 startups with a focus on delivering real-world use cases.

This partnership blends their strengths to support Web3 project development. DAO Maker’s renowned Launchpad will actively shape the Venom ecosystem, fueling the success of Web3 projects.

Under the agreement, DAO Maker and Venom Foundation will work together to incubate new projects through the Venom Launchpad. This new initiative will provide promising Web3 projects and developer teams with the resources, guidance, and exposure they need to succeed in the industry.

Integrating the Venom blockchain and Venom Wallet into DAO Maker’s Launchpad will give the incubated projects access to a broader audience and increase their exposure in the blockchain industry.

In addition to the partnership, DAO Maker CEO Christoph Zaknun will be taking on an advisory role within the Venom Foundation team. 

The partnership highlights the two organizations’ commitment to innovation and their dedication to helping new projects succeed in the blockchain space. The future looks bright for both parties as they work together to build a better future for the blockchain industry.

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Phoenix Labs Takes MakerDAO To The Next Level With Spark Lend Proposal

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MakerDAO, the leader in decentralized finance (DeFi), has seen a major boost in its capabilities due to Phoenix Labs. The blockchain firm has proposed Spark Lend, a new DeFi solution built on top of the MakerDAO platform.

It will allow anyone to borrow DAI, MakerDAO’s stablecoin, at the Dai Savings Rate (DSR) and enjoy a host of new features such as cross-margin, short positions, high leverage, and many more.

Revolutionary Spark Protocol Elevates MakerDAO To New Heights

On February 8th, Phoenix Labs proposed the Spark Protocol promises to elevate the DeFi giant to new heights. By enabling a liquidity market for supplying and borrowing scalable crypto assets with variable and fixed rates. 

The proposed protocol will support EtherDAI and implement the first resilient oracles to improve Maker’s strength. It will also evolve over time, adding new features to the front end by integrating Maker’s products and the most innovative DeFi solutions.

According to the MakerDAO governance forum, Spark Lend, the product under Spark Protocol, is a lending market that will integrate Maker’s D3M and the PSM. The main differentiator of Spark Lend from existing lending protocols is its D3M. 

Maker already has the cheapest credit in DeFi due to the absence of third-party liquidity providers. It will further amplify this advantage by allowing anyone to borrow DAI at the Dai Savings Rate. Spark Lend will focus on highly liquid, scalable types of collateral and will not compete with markets that offer “tail assets.”

Spark Fixed Rates: Capital-Efficient Fixed Rates In DeFi

Phoenix Labs plans to efficiently deliver fixed rates in DeFi capital through Spark Fixed Rates. Spark Protocol intends to partner with fixed-rate protocols such as Deco, Sense Finance, and Element Finance to deliver this feature by the second half of 2023. 

These protocols have already done the heavy lifting, and Spark Protocol will simply plug into them to offer fixed rates to Spark Lend users.

Moreover, regarding revenue generation and scenario analysis, at the start, Spark Protocol will generate revenue mainly through variable-rate loans in its borrowing and lending market. 

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Source: MakerDAO Governance forum

Later, fixed-rate loans and other adjacent revenue streams will be added. The main factors driving protocol revenue at the beginning include the variety of pools offered, TVL, utilization rates, and interest rate curves. 

Additionally, Scenario analysis shows that Spark Protocol could achieve substantial adoption and profits once properly ratified and funded with initial start-up capital.

Nevertheless, Phoenix Labs’ Spark Lend and Spark Protocol are set to revolutionize the DeFi landscape, bringing the best rate available in DeFi, capital-efficient fixed rates, and highly secure and scalable lending solutions. The future of DeFi just got a lot brighter with Spark Lend and Spark Protocol on MakerDAO.

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