Maker's Competitive Position With Other Peer to Protocol Lending Models

3min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

For stable coins, the name of the game is demand demand demand. There's only three stable coins that have done it at a large scale: USD, C, Tether and Die. And this is users who are not just using it to get a yield, they don't have to be paid to hold the stable coin. These are users who are like using it as cash, they're holding it in their wallets store value,. That kind of stuff. In terms of decentralized stable coins, Die is by far ahead. Now, I'm interested to see what happens with Go and Curve and all these kind of things, how they build demand. You know, liquidity incentives seems to be the

Sam MacPherson joins us to discuss how Spark leverages MakerDAO's wholesale credit line to build a lending marketplace built around DAI. We talk about Spark's design, the pervading influence of MakerDAO's DSR, why spot stablecoin demand reigns supreme, Spark's L2 strategy, MakerDAO's shift to AMOs and more!

And as usual, we start the episode with our analyst bullpen to discuss Gary Gensler's failure, Arbitrum's bug and social consensus, Solana's (not gonna happen) fork debate and if this is the worst bull market.

- -

Timestamps:

(00:00) Introduction

(01:14) Hot Seat/Cool Throne

(32:25) Interview Start: Spark

(38:23) How the DSR Enables the Lowest Rates in DeFi

(41:08) Organic Spot Demand for Stablecoins

(45:44) The DSRs Equilibrium Rate

(49:15) Undercollateralized Lending

(50:33) MakerDAO's Replacing the PSM with AMOs

(53:54) Spark’s L2 Strategy

(56:52) Fixed Rate Lending and DeFi’s Yield Curve

(1:01:12) Every Protocol Will Vertically Integrate

(1:03:12) Why Spark Forked Aave v3

(1:05:41) How the SubDAO Bidding Process Works

(1:08:40) Revenue in High vs Low Rate Environments

- -

Follow Sam: https://twitter.com/hexonaut

Follow Sam: https://twitter.com/swmartin19

Follow Dan: https://twitter.com/smyyguy

Follow Matt: https://twitter.com/MattFiebach

Follow EffortCapital: https://twitter.com/EffortCapital

Follow Blockworks Research: https://twitter.com/blockworksres

Subscribe on YouTube: https://bit.ly/3foDS38

Subscribe on Apple: https://apple.co/3SNhUEt

Subscribe on Spotify: https://spoti.fi/3NlP1hA

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

- -

Today’s episode is brought to you by the Atom Accelerator, now offering grants to build out the ATOM economic zone! It's the perfect time to build with Cosmos and join the thriving ATOM ecosystem. With Interchain Security live, and the power of IBC connecting the interchain, builders are flocking to Cosmos. Join the ranks of Neutron, Lido, Astroport, Gitcoin, Mars and numerous other projects harnessing Cosmos’ leading infrastructure. Discover how to secure a grant from the Atom Accelerator by visiting https://www.atomaccelerator.com/ today!

- -

Resources:

Proof-of-Steak (Gary Gensler)

https://twitter.com/GaryGensler/status/1623777842000539648?

MakerDAO

https://makerdao.com

Phoenix Labs

https://twitter.com/phoenixlabsdev

- -

Check out Blockworks Research today! Research, data, governance, tokenomics, and models – now, all in one place:

Blockworks Research: https://www.blockworksresearch.com/

Free Daily Newsletter: https://blockworks.co/newsletter

- -

Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Dan, Sam, and our guests may hold positions in the companies, funds, or projects discussed.