In a coordinated effort between different Core Units, we are close to the launch of the Nexo IV. It has been an exciting process that allowed us to work together with potential IV users and the Maker Community.
These are our learnings of that process:
- Governance reward tokens are very attractive for borrowers, not just because they directly reduce fees but also because the rewards are available capital for them.
- Although we can’t compete with that (for now at least), we offer increasing capital efficiency by predictable rates.
- The nature of the protocol (it’s not a pool, and everyone mints new Dai using their assets) is a huge difference from the other lending pools in the market. And an important advantage, because it’s easy to trace the origin of funds, and also the limit of Dai liquidity depends on the collaterals and not on the size of the pools.
- As more TradFi companies are interested in DeFi, new companies will want to try out the protocol, and we need more content to explain to these risk and compliance teams (not crypto teams) how Maker works.
- We have to check all the integration points these institutions use to access the protocol are working as expected. If not, they won’t be interested in using the protocol.
- As we mentioned before, there are some legal challenges with these TradFi companies. We are working on it, and we expect to give you updates on this matter soon.
- PSM as an on-off board solution for DAI is super powerful
- We have to keep improving IV terms and the process.
Thanks to everyone who contributed to this process!
Here’s the video clip from @Jenn’s appearance on Digital Asset Report, a global broadcasting platform covering finance, tech, and crypto news. It was on the topic of DAOs for more mainstream audiences.
Satang - a Thai exchange, listed DAI against THB fiat pair.
Wax Blockchain is live with their -alpha version- of an ethereum bridge and is supporting Dai.