• The MakerDAO community proposed a new protocol called Spark that would enable the lending and borrowing of DAI.
• The stablecoin has seen an increased active address in recent weeks, with over 87,000 active addresses.
• Crypto Quant’s Netflow statistic has also revealed a significant amount of outflow from the stablecoin.
Proposal for Spark Lend Protocol
Some members of the MakerDAO community submitted a proposal to the Maker governance forum on 8 February to introduce a new protocol called Spark that would facilitate the lending and borrowing of Dai (DAI). It is proposed that Spark implement Aave v3’s smart contract framework, with 10% of the protocol’s proceeds from the market over the following two years being donated to the Aave DAO. The plan states that Spark Lend will be the first product offered and will enable consumers to borrow DAI at the existing Savings Rate of 1%. As collateral, Spark Lend will accept highly liquid decentralized assets like DAI, Bitcoin, and Ethereum, as well as their wrapped versions. In addition, maker’s Spark will serve as company’s first official protocol interface for lending and borrowing on Maker platform.
Increase in Active Addresses
Content analysis reveals that Dai [DAI] is among front-runners in stable cryptocurrency market by market capitalization according CoinMarketCap places it fourth-largest stablecoin and seventeenth-largest cryptocurrency overall. Furthermore, 30-day active address measure from Santiment revealed that DAI had over 87,000 active addresses which was highest point in more than six months showing increasing utility recently.
Netflow Statistic
A glance at Crypto Quant’s Netflow statistic revealed that it has been experiencing significant amount Outflow On 8 February ,the stablecoin experienced an outflow of over 8 million demonstrating dominance migration off exchanges .
Endgame Strategy
This entire action from MakerDAO community may be related endgame strategy however whether this will have long term positive impact on DAI still to be seen .
Conclusion
The introduction of a new protocol by MakerDAO community called ‘Spark‘ could potentially revolutionize how people interact with DeFi systems by enabling lending and borrowing through liquidity markets for high liquid decentralized assets such as Dai (DAI), Bitcoin etc . Additionally , increase in active address points towards increasing utility while net flow statistic reveals outflows indicating potential migration off exchanges which could be related to end game strategy although it remains to be seen what effect this will have on DAI