The DeFi series — statistics around DAI stablecoin

In the MakerDAO ($MKR) system, loans are created by collateralizing $ETH which creates the stablecoin $DAI as a byproduct. The amount of Dai outstanding reflects the total debt in the system, which after peaking at $95 million in March, has since settled to around $85 million. By functioning as a decentralized U.S. dollar, Dai has become the standard in the DeFi space for use in other loan platforms, exchanges and derivative products. Currently, 17% of all Dai are held in the Compound smart contract earning interest with the second largest holder being dYdX. Recently dYdX has surpassed MakerDAO for the total amount of Dai borrowed in the last month.

Why it matters

• As this DeFi ecosystem continues to grow, MakerDAO will likely continue to act as the de facto central bank creating the reserve currency used across a number of applications. Monitoring the health of this asset will be a vital part of risk management in this emerging financial world.