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MakerDAO System Thrives Despite Market Volatility

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On March 11, the latest data released by MakerDAO on social media showed that the current mortgage rate of the Maker system was 154%, that is, 5.38 billion DAIs

MakerDAO System Thrives Despite Market Volatility

On March 11, the latest data released by MakerDAO on social media showed that the current mortgage rate of the Maker system was 154%, that is, 5.38 billion DAIs were supported by collateral worth 8.26 billion dollars. MakerDAO did not trigger liquidation in the past week, and the system operated as expected. In addition, PSM is currently operating smoothly as expected, with a reserve of $3.15 billion and a 100% mortgage to support 3.15 billion DAI.

MakerDAO: the current mortgage rate is 154%, and the PSM reserve is $3.15 billion

Analysis based on this information:


MakerDAO, a decentralized finance (DeFi) platform that issues the stablecoin DAI, recently released data on social media showing that its mortgage rate had reached 154%. This indicates that over 5.38 billion DAI tokens were backed by collateral valued at $8.26 billion. Despite the volatility of the cryptocurrency markets, MakerDAO did not trigger any liquidations in the past week, demonstrating the resilience and stability of its system.

The MakerDAO platform operates by allowing users to lock up collateral, such as Ether (ETH), in exchange for DAI, which is pegged to the US dollar. When the value of the collateral falls below a certain threshold, the system automatically triggers a liquidation to protect the stability of the DAI token. A high mortgage rate indicates that the collateral backing the DAI token is sufficient, reducing the likelihood of liquidations.

The fact that MakerDAO did not trigger any liquidations despite the recent market turbulence speaks volumes about the strength of the system. The platform has been operational since 2017 and has proven to be one of the most popular and trusted DeFi projects in the industry. Its ability to weather market volatility is a testament to the effectiveness of its underlying mechanisms.

In addition to the stability of the MakerDAO system, the platform’s PSM (Peg Stability Module) is also operating smoothly. The PSM is a system that allows for the direct purchase of DAI with US dollars, providing an alternative to buying DAI on exchanges. The PSM currently has a reserve of $3.15 billion and a 100% mortgage to support 3.15 billion DAI. This indicates that the PSM is well-capitalized and can handle large purchases of DAI without affecting the stability of the token.

Overall, the recent data released by MakerDAO demonstrates the platform’s resilience and stability in the face of market volatility. The platform’s high mortgage rate and successful operation of its PSM are indicators of its continued success in the DeFi landscape. As the cryptocurrency industry continues to grow and evolve, projects like MakerDAO will likely play a central role in shaping the future of finance.

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