MakerDAO Sparks Lend: A Push Towards DAI Adoption and Better MKR Revenue

• MakerDAO has launched its new vertically integrated market, Sparks Lend, to help improve DAI adoption.
• The success of MakerDAO’s stablecoin DAI is largely dependent on its acceptance across markets.
• If DAI adoption increases, it could improve the revenue generated by MakerDAO and potentially drive up MKR prices due to increased whale interest.

MakerDAO Launches Vertically Integrated Market for Improved DAI Adoption

MakerDAO has launched a new vertically integrated market called Sparks Lend in an effort to incentivize and control the success and usage of its stablecoin, DAI. This new market is designed to enable users to borrow DAI at the DSR variable rate of 1%. It also taps into Maker’s DAI Direct Deposit Module (D3M) and PSM to directly regulate the supply of DAI in its market.

Whale Interest in MKR Increases

The launch of Sparks Lend may have been one reason why whale interest in MKR increased as the percentage of large addresses holding MKR grew over the last month according to Santiment. However, its velocity continued to decline which implied that the frequency with which MKR was being traded fell and overall network growth declined. This suggests that new addresses were not particularly interested in buying MKR.

Selling Pressure on MKR Increased Due To MVRV Ratio

The MVRV ratio also rose which implies that holders would turn profits if they sold at press time leading most short-term holders selling off their coins which could potentially drive down MKR prices considerably if this happens again in future.

Tether & USD Coin Capture Majority Of DeFi Market

Tether [USDT] and USD Coin [USDC] have been dominating the DeFi market leaving behind other stablecoins such as DAI struggling for adoption rates. Integrating services with L2 solutions can help make DAI more mainstream by increasing its adoption rates which would ultimately increase revenue generated by MakerDAO through interests generated from stablecoins as well as investments made on real world assets (RWA).


Overall, MakerDAO’s newly launched protocol could potentially help improve DAI adoption especially if it integrates with some L2 solutions which would make it more mainstream leading to higher revenue generation for MakerDAO from various sources such as interests from stablecoins and investments made on real world assets (RWAs).