MakerDAO manages to increase profit to $19 million – CryptoNewsTo

MakerDAO manages to increase profit to $19 million

The year 2022 turned out to be not at all in favor of MakerDAO. It painted quite a solemn picture for the second-in-line DeFi protocol. It happened to have witnessed a full 79% downfall in terms of operating earnings. Even its top-rung revenues saw a downward slide to the extent of 42%. However, despite all of that and the fact that the crypto’s dismal happening that took place in the same year, it somehow was able to rise to the occasion and make some additional profits for itself. The factor also helped that the entity had adopted real-time assets, which pushed things upwards.

According to relevant information received from reliable sources, MaherDAO happened to have clamped $19 million as profit, out of a total revenue earning of $62 million, for the year 2022, which indeed happens to be praiseworthy. Even though the amount may not really seem much, as compared to it making $90 million in the year 2021, the fact that it was up against the crypto downfall seems to speak volumes about its sheer tenacity. However, on the whole, MakerDAO’s financial standing took a beating also due to a fall in lending demand in terms of crypto collateral. Despite all of the negative factors involved, the entity happened to have risen from the situation undamaged. 

Where MakerDAO’s TVL is concerned, it has also taken a leap upwards to nearly 20%, making it $7 billion presently. Its conventional token, MKR, also has seen a rise of 1.5% over the past week. In comparison, it happens to be ETH which has seen a drop of -1.1%.

In the same breath, investors are keeping a close watch on its operating expenses, which had increased by 110% last year, amounting to a full $46 million. MakerDAO happens to be an overcollateralized debt protocol where it is made possible for borrowers to mint their DAI stablecoin with the help of making deposits of collateral assets within their smart contracts.

DAI happens to be the fourth in line of the biggest stablecoin having a market cap of $5.1 billion. However, the DAI’s circulation figures slipped from approximately 9B at the beginning of 2022 down to 5B by the end of the year. 

According to informed sources, MakerDAO happened to have stopped the downfall by becoming inclined towards real-time assets in the same year. The year 2022 also witnessed MakerDAO’s RWA climbing its way upward to $640 million from $17 million. For the future, the company happens to have kept a target of generating $43 million in the form of revenue for the year 2023, with net earnings of $7 million.  

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