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The self-rescue journey of the veteran DeFi project, analyzing MakerDAO's Endgame transformation plan.

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ChaincatcherChaincatcher2024/05/09 15:37
By:作者:夫如何,Odaily 星球日报

In the first phase, two new tokens will be launched, followed by the introduction of the Lockstake Engine (LSE) staking protocol, NewBridge, Spark SubDAO, and so on.

Author: How, Odaily Star Daily

 

Recently, MakerDAO announced the launch of new tokens NewStable and NewGovToken. Among them, MKR holders can upgrade their tokens to the new governance token (NewGovToken, exchange ratio 1: 24000), which is the new governance token within the ecosystem, and stablecoin Dai (DAI) can be converted into the new stablecoin (NewStable). (Odaily note: the names of the two tokens have not been revealed yet)

It is not uncommon for well-established projects to launch new tokens, mostly seeking change and new growth points. However, when renowned projects like MakerDAO take such actions, the impact behind it should not be overlooked.

According to MakerDAO's official forum and the latest updates, the news of MakerDAO launching new tokens was released as early as last year, and issuing new tokens is an important part of the Endgame transformation plan's first phase.

The Endgame transformation plan was approved by governance vote in August 2022, with continuous updates and discussions until the recent official announcement of the launch of new tokens this summer. Endgame is a significant update for MakerDAO, aiming to increase efficiency, resilience, and participation to expand Dai supply to 100 billion and beyond. A key feature of Endgame is to make the ecosystem more prosperous through sustainable SubDAO token mining, where SubDAO is a DAO ecosystem that utilizes MakerDAO's infrastructure while maintaining flexibility and autonomy. There will be SubDAOs suitable for different groups of people, and Dai users can easily choose their preferred SubDAO and start mining the corresponding SubDAO tokens.

Odaily Star Daily will start with an overview of the new tokens to elaborate on the current stage of MakerDAO's Endgame transformation plan.

The first step is to launch new tokens, followed by building a DeFi ecosystem centered around SubDAO

A month after MakerDAO's new brand was unveiled, the new stablecoin (NewStable) and new governance token (NewGovToken) will be officially launched, and Maker's brand new ecosystem will operate using the new tokens. Before this, Dai and MKR tokens will remain unchanged, giving users the choice to upgrade to NewStable and NewGovToken; failure to upgrade tokens may result in the inability to participate in the new ecosystem features. According to official descriptions, Dai will focus on native crypto use cases, while the upgraded NewStable will focus on large-scale adoption.

NewStable will continue to operate as a stablecoin, interchangeable with Dai. After its launch, NewStable can be used to mine the new governance token NewGovToken (not available to VPN users and users in the United States).

NewGovToken can also be converted back and forth with the pre-upgrade MKR tokens. Compared to the limited supply of MKR, the supply of NewGovToken will expand, with an official exchange ratio of 1 MKR to 24000 NewGovToken. This move can lower the price of governance tokens, expand governance participation, attract more new users to participate in community building, and thus increase the project's decentralization.

In addition to issuing new tokens, the subsequent Endgame will introduce the Lockstake Engine (LSE) staking protocol, where users can stake MKR and NewGovToken in LSE to mine NewStable and upcoming SubDAO tokens (including the SPK tokens from the Spark SubDAO).

It is worth noting that 30% of all protocol surplus income earned by the protocol will be allocated as NewStable rewards, proportionally distributed to LSE users who choose to receive NewStable rewards. Additionally, when unlocking their tokens in LSE, users staking NewGovToken and MKR will pay a 15% exit fee; this fee will be burned by the protocol and deducted from the initial Lockstake principal. (Odaily note: Lockstake Engine is not available to US residents and VPN users)

After the launch of the Lockstake Engine, NewBridge and Spark SubDAO will be successively launched, collectively achieving the goals of the first phase of the Endgame transformation plan launch season.

NewBridge will connect the NewStable, NewGovToken, and other Maker ecosystem tokens on the Ethereum mainnet to L2 (currently pending). NewBridge will support native mining on L2, providing users with a low-cost access channel.

Spark is a SubDAO in the MakerDAO ecosystem. As an independent community, Spark has autonomy and a unique business model. SparkLend is Spark's main product, a lending platform where users can use crypto assets as collateral to generate Dai at a predictable interest rate, and in the future, generate NewStable.

In addition to SparkLend, Spark will also provide some new business capabilities:

  • RWA: Spark will utilize the RWA infrastructure established by MakerDAO to deploy funds into real-world assets for returns and improved risk-adjusted returns.
  • Perpetual swap revenue: In addition to RWA, Spark will generate revenue from the crypto perpetual swap market, providing users with low-risk revenue opportunities.

The total supply of Spark token SPK is 4 billion, mainly obtained through staking on the Ethereum mainnet and (pending) L2 by NewStable users. The SPK circulation trend is 10 billion in the first two years, halving every two years thereafter until the full supply is reached in 10 years.

Spark governance: Spark has a community governance mechanism controlled by SPK token voting, and over time, within the Maker SubDAO ecosystem framework, Spark governance will autonomously operate all activities.

According to official governance forum disclosures, the Endgame transformation plan will proceed with three subsequent phases, namely:

  • Phase 2 Scale Expansion: After all ecosystem components are launched in the first phase, the second phase will expand the scale and applications of the ecosystem to enhance its size;
  • Phase 3 NewChain: The third phase will introduce an independent Layer 1, hosting the core token economics and governance mechanisms of Maker Core and SubDAO, and connecting RWA, DeFi, and public chains through the NewBridge system.
  • Phase 4 Final Endgame: The final Endgame is the moment when all technical and foundational governance mechanisms are completed, and when activated, all basic governance mechanisms of Maker Core will become immutable, realizing the ultimate vision of Endgame.

Governance changes guide ecosystem prosperity, a new DeFi ecosystem is about to emerge

From MakerDAO's Endgamenbs

In the transformation plan, it is not difficult to see that as early as 2022, the MakerDAO community initiated a "self-rescue" operation in response to the current bottleneck in the DeFi sector. As a veteran project, MakerDAO deeply understands that staying unchanged equals "slow death" and will eventually be surpassed.

However, Maker's chosen path of transformation is different from other DeFi projects—previously, dYdX sought development in terms of performance and user base by migrating from Ethereum to layer 2, and even later building its own dedicated chain.

The Endgame transformation plan envisions a DeFi ecosystem centered around community governance. Superficially, the Endgame transformation plan and dYdX's development path on the underlying public chain are largely similar, transitioning from Ethereum to building L1 (MakerDAO disclosed that it will not shut down functions on Ethereum). However, the core lies in attracting different demands and preferences of users to participate in MakerDAO's governance through different SubDAOs. This will segment different sectors within MakerDAO's own ecosystem, allowing the stablecoin Dai or the upgraded NewStable to circulate comprehensively within the ecosystem, thereby enhancing its prosperity.

According to the roadmap disclosed, it may take several years for Endgame to be realized. However, in the first phase to be launched this summer, there will be various mining and revenue channels available, which may bring new vitality to the DeFi ecosystem. Odaily Star Daily will continue to follow up on this.

Associated Tags
MakerDAO Endgame Lockstake Engine DeFi SubDAO Spark
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