Makerdao Dev Insists Defi Protocol Should Leverage Real World Assets to Scale – On March 16, Hexonaut, a protocol engineer at Makerdao and co-founder of the software and design business Bellwood Studios, proposed a plan to grow the decentralized finance (defi) protocol Makerdao using real world assets (RWAs).
Hexonaut insists that the bull market was beneficial, but that “time is running out” and that Makerdao needs to “take the next step and begin integrating with the real world at scale.”
Makerdao software developer has a concept that he believes can revitalize the decentralized finance (defi) system. Makerdao is a collateralized debt position (CDP) or system that oversees the DAI stablecoin’s issuance.
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According to defillama.com statistics, there are around 31 different CDPs across multiple blockchains, with Makerdao being the largest in terms of total value locked (TVL). Makerdao now has a market capitalization of $16.15 billion TVL, up 6.99 percent in the last seven days.
Makerdao is also the second-largest defi protocol in terms of value locked in defi today, according to Curve Finance. With a market cap of $9.5 billion, Makerdao’s DAI stablecoin is the fifth-largest stablecoin.
DAI has recently been surpassed by the Terra-issued stablecoin UST, which currently has a market cap of roughly $15.4 billion.
Hexonaut, a Makerdao protocol engineer, has shared a suggestion for incorporating real world assets (RWAs) into Makerdao’s CDP scheme. Hexonaut’s plan, on the other hand, emphasizes that crypto-native yields have dried up liquidity, and he believes that the initiative should “extend to uncorrelated, quality loans to diversify the portfolio with productive assets again.”
On the same day, the protocol engineer collaborated on a Makerdao governance plan with other contributors in a post titled “Aggressive Growth Strategy.”
Hexonaut states in his proposal that he believes the project will inevitably rely on RWAs. Hexonaut advocates a two-step strategy that includes a capital raise and “conservative” risk-on exposure. Because a number of competing protocols have concentrated on bridging RWAs, the developer believes it is the appropriate time for Makerdao to leverage RWAs.
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According to Hexonaut’s proposal:
“We believe now is the appropriate time to ramp up the RWA effort. Along with our own efforts to improve and scale the pool of borrowers with whom we already work, a number of off-chain counter-parties and on-chain protocols have arisen in the last year that are pioneering the push to connect RWAs to crypto.”
Some people thought introducing RWAs had benefits and drawbacks, as seen by the comments that followed Hexonaut’s proposal. Psychonaut, a user, expressed his enthusiasm for the notion of “increasing the surplus buffer by selling bond-style assets.”