The bull market was advantageous, according to Hexonaut, but “time is running out” and Makerdao needs to “take the next step and begin integrating with the real world at scale.”
On March 16, Hexonaut, a Makerdao protocol engineer and co-founder of the software and design firm Bellwood Studios, offered a concept to grow Makerdao’s decentralized finance (Defi) protocol using real-world assets (RWAs).
Incorporating real-world assets into the CDP equation is discussed in a Makerdao proposal.
Revitalise the Defi system
A Makerdao developer has an idea that he believes can revitalise the decentralised finance (Defi) system. Makerdao is a mechanism or structured finance position (CDP) that oversees the issuance of the DAI stablecoin.
Because a number of competing protocols have concentrated on bridging RWAs, the developer believes it is the appropriate time for Makerdao to exploit RWAs.
Hexonaut’s plan, on the other hand, emphasises that crypto-native yields have dried up liquidity, and he believes that the initiative should “Expand to uncorrelated, high-quality loans in order to re-diversify the portfolio with profitable assets.” In a post titled “Aggressive Growth Strategy,” the protocol engineer collaborated on a Makerdao governance strategy with other contributors on the same day.
In his proposal, Hexonaut claims that he feels the project will inevitably rely on RWAs. Hexonaut advocates a two-step strategy that includes a capital raise and “conservative” risk-on exposure.
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Some Makerdao followers praised Hexonaut’s initiative, while others called it a “bad idea.”
As evidenced by the comments that followed Hexonaut’s suggestion, several people believed that adopting RWAs had both benefits and problems. Psychonaut, a user, expressed his enthusiasm for the thought of “increasing the surplus buffer by selling bond-style assets.”
About Makerdao
According to reports, Makerdao is the second-largest Defi protocol in terms of value locked in Defi currently. Makerdao’s DAI stablecoin is the fifth-largest stablecoin, with a market valuation of $9.5 billion.
The Terra-issued stablecoin UST recently overtook DAI in terms of market capitalization, with a market cap of roughly $15.4 billion. Makerdao protocol engineer Hexonaut has proposed incorporating real-world assets (RWAs) into the Makerdao CDP scheme.
According to reports, there are around 31 different CDPs across multiple blockchains, with Makerdao being the largest in terms of total value locked (TVL). Makerdao’s market capitalization has increased by 6.99 percent in the last seven days to $16.15 billion TVL.
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Source: https://www.thecoinrepublic.com/2022/03/22/is-makerdaos-defi-ready-to-grow-using-real-world-assets/