MakerDAO, the governing body of Maker, reported 86% revenue decline in the third quarter of 2022, as a result of low credit demand and less liquidations.
Messari expert “Johnny TVL,” who is also the co-author of the “State of Maker Q3 2022” study, revealed via twitter post that the Q-o-Q revenue of MakerDAO fell from $30 million to $4 million.
The network experienced a 74% reduction due to ETH-based assets, its worst income loss. Additionally, its income from BTC-based assets fell by 66%, while the remaining assets fell by 36%.
As per the expert, the protocol reported its first net revenue loss since 2020, as a result of falling revenue and large expenses. MakerDAO’s collateral ratio dropped to 1.1 from 1.9.
MakerDAO recently sought to increase the yield on its untapped assets. The community agreed last week to invest $500 million in corporate and U.S. Treasury bonds, a decision that some said goes against the protocol’s intention of maximal decentralisation.
As per DefiLlama, Maker is the largest DeFinetwork, with $7.83 billion in total value locked (TVL). According to CoinMarketCap, MKR, the governance token of MakerDAO, is currently trading at $899. The protocol’s main stablecoin, DAI, is currently the fourth most valuable cryptocurrency.
However, the DeFi business as a whole has suffered significantly, with TVLs dropping on the vast majority of projects.
The loss in Maker’s revenue suggests a decrease in user activity, which is to be expected during a bear market. Maker is the largest decentralised finance system by total value locked.
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