Financial Report - 2021-12

The financial report for December 2021 is available here.


Higher December stability fees drove higher net interest and recurring income, despite a 10% decrease in risk weighted assets from November. Net protocol income was up 40% month over month, driven by a 20% ($2.1M) increase in net interest income. On a year over year basis, net interest income increased 795%.

Looking at the full year, net protocol income increased 2,541% vs 2020, driven by significant growth in risk-weighted assets which drove higher interest (+1,919%) and liquidation income (+3,342%). Overall protocol profitability is overstated due to oracle gas costs not being included (previously covered by the MakerDAO Foundation). Excluding the Oracle Emergency Fund, current expectations are for $18.9M in oracle gas costs in 2022 ($3M to repay Foundation oracle expenses from 8/1/21 - 12/31/21 and the balance for 2022).

YoY Summary

  • Recurring income increased to $71.9M (+1,581% vs 2020), driven by a $86.4M in net interest income and $21.3M in net liquidation income.
  • The MakerDAO Foundation officially dissolved and the first Core Units were created. Workforce expenses were $14.5M for 2021 and only include Dai expenses (MKR compensation has been granted but the first tranche will not vest until March 31st
  • Dai risk ratios increased favorably with the CET1 ratio more than doubling from 0.34% to 0.79% and the leverage ratio increasing from 0.58% to 1.46%.
  • ETH lending market share decreased 14% (60% → 46%) driven by Liquity and AAVE taking share. Overall ETH locked in Maker vaults decreased 1.4% from PY despite the ETH lending market growing 29% in ETH terms. ETH locked in major DeFi protocols increased from 4% of total ETH to 5%.
  • The WBTC lending market grew 110% vs 2020 with Maker making the most inroads on competitors, more than tripling their market share from 14.9% in 2020 to 47.1% in 2021.
  • Dai outstanding grew from 1.2B to over 9B in 2021, a 675% increase

Selected slides


@Aes could you give us a graph of actual % market share of BTC and ETH or point me to a specific graph that shows actual Market share as a % of total vs. numbers.

With respect to ETH it looks like Maker is losing marketshare like you say but it is unclear to me how much of the market we have lost as a % of the total?

As I advocated strongly that Maker get BTC vault going (long ago) I am very interested to see how much of the wBTC marketshare we are capturing.

Of interest is some distinction and color between institutional vaults in terms of market share vs. the rest. It is my feeling that Maker is gaining market share through IV and losing it rapidly in other categories and would like to see this quantified in data.

Thank you for any assistance in advance.

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Please see below for the ETH and WBTC market share graphs. It’s difficult to see in the ETH and WBTC slides in the OP, but there is a table on each respective slide that shows total ETH and WBTC locked as well as how much the supply and lending markets have grown for each collateral.


  • We lost 14% market share falling from 60% to 46% by the end of 2021 (net decrease of 0.04M ETH)
  • ETH lending market grew by 1.31M ETH (+29% vs PY) on total ETH supply growth of 3.95M (+3.5%)
  • 5% of ETH supply is now locked in either Maker, AAVE, Compound, or Liquity, vs 4% PY


  • We more than tripled our market share from 15% in 2020 to 47% in 2021, growing WBTC locked from 8.4K to 55.4K
  • WBTC lending market grew 110% vs PY and WBTC supply increased 119%
  • Only 1.6% BTC’s supply is wrapped as WBTC and only 0.6% is locked in the major DeFi 1.0 protocols - tremendous runway for growth

Regarding IVs, I believe you are referring to Institutional users rather than IVs as we have still not officially launched fixed rate IVs yet. From that perspective, I would highly recommend checking @SebVentures research. We’re investing more time researching with the help of @tadeo to understand our growth drivers and should hopefully have more information to share soon :slight_smile: .

Let me know if you have any additional questions.