Coin Edition -
- A financial analyst recently discussed the financial operations of Maker DAO.
- Derivaux said the DeFi giant needed scale to bank the unbanked.
- The crypto community criticized allowing the MKR token to borrow DAI.
In a recent interview with Crypto Journalist Laura Shin, Sébastien Derivaux, Founding Chef at crypto financial services firm Stakehouse Financial, examined the financial operations of Maker DAO, a leading decentralized finance (DeFi) platform.
Derivaux first argued that while the DeFi giant hopes to change the world by banking the unbanked, doing so on a significant scale would be essential for success. Elaborating more on this point, Derivaux stated “You’re not changing the world with $100 million DAI tokens,”.
The financial expert also faulted Maker DAO’s original ways of issuing DAI tokens in loans, claiming they contain inherent volatility risks. He noted that, however, things have changed and that Maker DAO now has the scale it needs after investing in low-risk US treasury bills with half a billion dollars.
Why has @makerdao been increasingly adopting real-world assets? Is it the key to banking the unbanked? @sebventures weighs in.Subscribe here for all our premium interviews: https://t.co/uC61FV9MsR pic.twitter.com/OXrzgawLdL— Laura Shin (@laurashin) March 6, 2023
Furthermore, Derivaux spoke about introducing real-world assets into the Web3 ecosystem and the future of liquid staking protocol Lido. He further discussed the complexities of managing a treasury in a decentralized ecosystem.
A few weeks ago, the crypto community criticized a co-founder of MakerAO over a proposition allowing the MKR token to be used to borrow the DAI stablecoin by holders that have delegated their governance power. Arthur Hayes, the Co-Founder of BitMEX, likened the situation to the case of the ill-fated Terra Luna projects, UST and LUNA.
Hmm looks a lot like backing $UST with its governance token $LUNA. Did @stablekwon secretly infiltrate @MakerDAO? https://t.co/3u6NzOMkPK— Arthur Hayes (@CryptoHayes) February 24, 2023
A Maker DAO delegate argued that such a proposition presented an excellent method for cybercriminal organizations like North Korea’s Lazarus Group or even lone hackers like those who attacked Mango Markets to make off with users’ assets.
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