Financial Report - 2021-03

The last financial report is available here.

In short

Almost everything is great.

  • Results are great: +71% in recurring income
  • DAI was never so safe. We are reaching almost 1% in CET1 ratio (risk-weighted assets leverage ratio)
  • MKR was never so cheap from a value perspective (implied annual yield of 4.65%, i.e. PER of 21.5).

The only possible issue is DAI usage. We are losing significant market share in on-chain volume this month (from 17% of the volume to 8%).

Selected slides


I don’t think the transaction volume decline is too concerning - something to keep an eye on though. It’s more apparent that USDT is losing market share to USDC, and DAI is competing with BUSD for the 3rd position. We did have some stability fee increases recently, which may require adjusting if the trend continues.

All in all, well done!


This is great information and visually easy to digest. Big props to you.


This is great work Seb! Looking forward to future reports–wondering how the Core Unit expenses will play into the overall picture–say 9 months out when most are onboarded.

Also, I’m wondering if the slow down in DAI usage is a combination of the arrival of new decentralized Stablecoins in DeFi, folks moving to other layer 1s & 2s, and a slow down in developments by the BD team, because of the transition from the foundation to being independent? Perhaps a combination of All and much more.

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Regarding your first question the budget dashboard might help you. But at this stage, we don’t know a lot of stuff.

For the second part, I agree. But hard to tell without hard data. UST is for sure taking a chunk of the degen folks. Is that significant? I don’t know.

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Indeed–and it’s hard to gauge if their is a thirst–as an example–for the USDC implementations via Algorand, Solana, etc. (can’t keep up with all their announcements) . Not sure if Circle counts those versions of USDC in their total outstanding float–or, as you say if it is significant–at least not yet. But, as you said we probably won’t be able to compete with USDC and USDT for the time being. Hopefully in the future.

I see that Coinlist has moved to list UST–so ya, they’re gaining traction.

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Do we have some strategy around making this report (and other similar materials) more visible in crypto/defi/ethereum communities? Like promoting it on Reddit/Twitter, perhaps even creating some YouTube version?


I promoted it a bit on Twitter and on Real Vision.

This presentation is a good marketing piece, getting more audience one day after publication than research that took way more work … (the march report is at 35k impressions)

I know it goes to the right people (analysts, investors, at least some) and it generates some side marketing (as below).

It’s not good enough yet to break serious financial channels but I hope soon. Marketing can repurpose the content if they want.


I feel like the financial strength of this speaks to the viability of DAI and MKR. [edited]

Has anyone thought about getting DAI a credit rating? I think by the end of this year it will be fairly easy to get a good rating. I don’t think any other stable coins have that, so could be a nice advantage to have to encourage more uptake from merchants and payment processors.

Forgive me if this has already been discussed. I’m new to the forum :slight_smile:


I just thought that it could be a good material for short video where someone would go through this presentation, explain it a bit, put some light on the most important metrics. What do you think?

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Hi @PaperImperium and welcome to the forum

We have a kind of unwritten rule about not discussing the price of MKR here.
All speculation goes here Maker Chat, login and feel free to speculate as much as you want :slight_smile: Love to have a chat over there about :heart:MKR :heart: future value


Thanks! I’ll edit the post to redact that!

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I have no skills to make a video anyway, but happy if someone else does it. In my view, what matters is not the video, it’s the distribution.

May be something missing, the repartition of assets by risk classification.

I am not sure how to represent it neither how to create the classification.
But perhaps, it can be interesting to have something like :
1% AAA dai
20% AA usdc
50% B Eth


It’s a good idea indeed. There is already the risk-weighted asset metric (0x for stablecoin, 2x for ETH-B, x1 for the rest). But it’s not easy to create something more detailed because there is no credit risk. Liquidations are a market/operation risk and good luck evaluating that. The unknown risks are bigger than the knowns ones.

So, for now, it’s not a priority.


Right, but media is the message, and media is the distribution. When you have video people watch it just because it’s on YouTube.

Yes, it is not easy but I think it is going to be needed with RWA.

It’s not quite the same thing as a credit rating, but I know there’s an urge to onboard less correlated collateral. Couldn’t we pick something like BTC + ETH or something simple as a benchmark and do R squared or similar to see risk of everything going up/down together?

I feel like any kind of granularity is useful to at least think about the basket of assets eligible for collateral. I suppose framework for terms on each collateral should probably come after better understanding how they differ from one another in the real world markets.

I suspect the decline in DAI on chain tx volume is in large part due to the move to centralized exchanges and competing chains due to increased gas cost period recently. These places much less use DAI as their main unit of accounting.

I suspect that gas fees are largely responsible for slowing DAI’s growth trajectory. Hopefully ZKSync 2.0 alleviates this problem and DAI continues its exponential growth.