Dai supply approaches $300 million as value locked in Maker breaches $1 billion

Today Maker became the first DeFi protocol to surpass the $1 billion total value locked mark. Nearly $900 million of that TVL is ETH.

Source: DeFi Pulse

Since Compound’s distributionpatch passed June 30th, which made Dai more attractive to liquidity mine with, Dai issuance has soared more than $150 million. During this time more than $140 million Dai went into Compound.

The big tick up in new issuance has not been enough to bring Dai’s price back down to its $1 peg. Dai’s price remains above $1.01 as new issuance doesn’t necessarily lead to downward pressure on price. A user needs to be willing to mint new Dai and sell it into the market in order for it to do so, rather than just putting it into Compound.

Source: Messari Portal

Why it matters:

• Liquidity mining is disrupting DeFi and causing an explosion of activity in many DeFi protocols, including Maker.
• Dai’s persisting premium is a great example of the challenges Dai faces scaling with demand.