MakerDAO's Dive into Real World Assets

Key Insights

• Bridging the gap between the real world and DeFi, MakerDAO started embracing real world assets in the form of real estate, invoices, and recently, commercial loans.
• Maker’s real world assets currently make up 10% of the protocol revenue despite only representing 1% of the total value locked.
• In a historic first step to integrating traditional U.S. banking infrastructure with the DeFi ecosystem, MakerDAO recently approved Huntingdon Valley Bank’s collateralized lending proposal as its latest real world asset vault.

Integrating traditional finance and blockchain technology is arguably one of the most significant roadblocks to the long-term adoption of cryptocurrency. Building the necessary infrastructure is cumbersome, but it is also challenging to develop compliant protocols that do not corrupt the inherent decentralization of DeFi. MakerDAO started breaking down the barriers between the real world and the Ethereum DeFi ecosystem by collateralizing real world assets in the form of real estate, invoices, and recently commercial mortgages and business loans.

In this report, we will take a look at MakerDAO’s real world asset vaults and dive into their latest partnership with a U.S.-based bank, Huntingdon Valley Bank.

MakerDAO's Real World Asset Vaults