When talking with a protocol on another network about integrating Dai, they sometimes ask for help to inject Dai liquidity into the protocol to bootstrap the market. Depending on the depth needed and the size of the protocol, Dai needed for liquidity could be about 3MM. Usually, these pools generate fees from trades that will provide revenue. Still, there’s always the risk associated with the impermanent loss if the pool is not against another stablecoin (and the risk of the protocol itself).
There are different solutions for this:
- companies that provide Market Maker services (for a fee)
- Other DAOs have a treasury
- A loan from any of the lending protocols (for a fee)
We will be posting an extended analysis of this to find the right solution for this challenge.
The Enterprise Ethereum Alliance (EEA) is an organization whose objective is to drive the use of Ethereum. As members, we have exposure to the other members and access insights into what companies are looking for. This is also another channel to communicate what MakerDAO is doing.
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