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Preliminary notes

This presentation is provided as is and is still a work in progress and shouldn’t be relied on for anything.

Maker is subdivided in 3 business lines:

Lending is the business of lending DAI against strong collateral (i.e. non $-backed stablecoins)
Trading is the business of exchanging DAI with other $-backed stablecoins. It contains older stablecoin vaults.
Liquidation is the business of liquidating loan collateral before losing money.

While all queries can be subjected to bugs, the liabilities data are known to have some issues and are only estimations at this point.

Most data are sourced from

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Monthly results

Increasing interest income due to loans demand and higher stability fees

Trading increase due to DAI demand for farming activities.

Lower volatility volatility leading to not many liquidations. Black Thursday in march 2020

No expenses this month. Core Unit expenses starting in April.

Trading contains non-liquidable vaults and the PSM. Recurring excludes trading and liquidation income (but keep workforce expenses).

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Monthly results

Trading contains non-liquidable vaults and the PSM. Recurring excludes trading and liquidation income (but keep workforce expenses).

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Lending business

Sharp income increase ($8.1M vs $4.8M last month)

Increasing dependency on ETH-A (77% from 75% last month)

Yield is based on income divided by the average between the starting of the period and the end (not 100% accurate). Trading assets (like stablecoins except USDT) are excluded.

Lending income: $8.1M

($4.8M last month, +69%)

o/w ETH-A: $6.3M (77%)

Average yield: 5.27% (4.04% last month)

Loans balance: $2,010M

($1,686M last month, +19%)

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Trading business

Increased demand for DAI using the USDC swap.

Still no reverse trade (DAI -> USDC)

PSM revenues: $407,721

($197,651 last month, +106%)

Inventory: $980M

($658M last month, +49%)

Mainly USDC

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Liquidation business

Low volatility environment

All income and losses are aggregated during the month. Only the net results is displayed

Income: $0.2M

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Balance sheet

Assets

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Stablecoins

Market share

Volume: 8%

Last month: 17%

Last year: 6%

Transaction volume

Market MoM growth: -8%

DAI MoM growth: -54%

Market YoY growth: x6.7

DAI YoY growth: x9.1

DAI position

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Risk

*RWA = Risk-weighted assets, stablecoins (excl. USDT) are weighted 0x, ETH-B loans are 2x, the rest is 1x

Leverage ratio = assets / equity (surplus buffer)

CET1 ratio = risk weighted assets / equity (surplus buffer)

Safety ratio are increasing faster than risk exposure thanks to the increase of the Surplus Buffer

Surplus Buffer: $19.7M

($10.97M last month, +80%)

Assets: $2,990M

($2,345M last month, +28%)

RWA*: $2,060M

($1,815M last month, +13%)

Leverage ratio: 0.66%

(0.47% last month, +19bps)

CET1 ratio: 0.96%

(0.44% last month, +35bps)

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MKR Valuation

MKR Price: $2,031

vs $2,105 (+4%)

Earning Yield: 4.65%

vs 2.82% last month

Equity per MKR: $19.79

vs $11.02 last month

Monthly recurring earnings doesn’t include liquidations and trading activity

The earning yield is the annualized earning per MKR token divided by last MKR price of the month