DAI / Providing Liquidity on Thorswap (Thorchain)

Should providing liquidity for DAI swaps to this growing community be something that is looked into? The more places users can swap native assets to DAI the better for all.

Users can swap L1 crypto on BTC/ETH/BSC/LTC currently, they are also planning to onboard more L1 chains in the coming months. It’s still early days for the protocol with liquidity cap restrictions. But they are being raised consistently as they iron out any issues.


Directly MakerDAO does not provide liquidity, mostly it is the same users who do it in the first place. Although being in L1 I think it will have certain limitations, and if we talk about DAI in Polygon would be another story. :wink:

Users are able to swap ETH, BTC, LTC for USDC. Why do we not want to organise an effort to make it easy for users to swap directly to DAI instead?

Also what has Polygon got to do with this subject?

Polygon and Klaytn actively promote Dai usage and bring liquidity. I don’t think Thorchain is doing that

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Yes thats fantastic to hear. But again i’m not seeing how this has anything to do with this conversation. Polygon is the ETH ecosystem, which DAI is very much already apart of.

If we are able to provide liquidity for DAI on Thorswap/any Thorchain protocol. We are increasing the ease of users with BTC and LTC to swap for DAI during market downturns etc.

What do you think are the main advantages for the Dai user in this network/protocol?

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I think it’s as simple as; more users > more liquidity > DAI.

I’m not here to shill Thorchain, i’m just wanting what is best for MKR as a holder and my observations of this protocol is that it provides a real opportunity for MKR holders to both earn yield and grow DAI usage.

Here are the key facts on Thorchain/Thorswap:

Launched: April 2021 (they are incrementally increasing the liquidity caps to ensure stabilisation of the protocol. Being able to swap L1 BTC for L1 ETH has never been possible before.)
TVL: $285m
Total Swaps: 530k
Thorchain Social Media Followers: 92k (compared to Uniswap; 500k, SushiSwap; 110k)
Avg APY: 16%. However on stable coins such as USDC, USDT, BUDS the APY is closer to 40%.

The future is multi-chain in my opinion (and many others). Thorswap can open up DAI to other L1’s and in particular the biggest L1 of all BTC.

As MKR holders we can either approach this as a collective, where we all provide liquidity individually to earn yield. Or even better the treasury would allocate larger amounts of funds to the liquidity pool to ensure the slippage fee is minimal, further incentivising users to park funds in DAI (while also earning yield). I think a combination of both would be the best solution.

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stay tuned, soon more info from Growth Core Unit :wink:


excellent great marian! :sunglasses:

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Awesome Marian, I already want to see what’s to come. :eyes:

I really like your thinking, sooner or later we will go to the common denominator called multichain, that will be key for the growth of Maker. I don’t know if it is right to incentivize them to park funds in a third party protocol but it may be an early solution to liquidity. I don’t really know this protocol in depth that’s why my question, so thank you very much for answering it, I will investigate more, it’s very interesting.

I’m a big fan of Thorchain, and think this is an elegant way to get DAI exposure to more L1s, not to mention while earning some yield.


i agree with you

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I learned more about the project and it is undoubtedly excellent. it can be a great DAI enhancer.


It should be noted that there apparently has been an attack of ~2,400 ETH on the Thorchain network. They are currently investigating at the time of this post.


Well, it was too good to be true

Omg thanks for the info :grimacing:

Yes saw that this morning thank you for updating, with the issue on the ETH chain specifically. I still think the project is very strong and has potential, but this obviously highlights the risks involved with supporting the platform at this early stage. I will be looking out for their transparent de brief coming up.

It appears Thorchain just suffered another exploit of around $8M.

I think it’s safe to say we should probably wait until the dust settles before considering any sort of play here. I’m bummed as I will admit I thought this was a great idea. They appeared to have a solid, innovative team and good tech but clearly there are some kinks to work out.


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