MakerDAO

MakerDAO Financial Report 2023

A comprehensive look back on 2023 for MakerDAO, along with an in-depth introduction to the protocol and its future changes

March 7, 2024

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2023 was a transformative year for the Maker Protocol in many ways. Most notably, Maker onboarded and ramped up two real world asset (RWA) vaults - Clydesdale and Andromeda - which deployed protocol capital into short duration US treasuries. These allocations increased the sustainability of the Maker Protocol, as it no longer has to solely rely on the crypto lending market, which is highly cyclical. Rebounding from the Q4 2022 nadir of annualized stability fee of 11.3 million Dai, the protocol exited 2023 in a significantly stronger position, with 222.2 million Dai in gross annualized protocol revenue. 

In 2023, the Maker Protocol saw:

  • Gross stability fee revenue of 107.7 million Dai, an increase of 140% (+62.7 million) from the prior year.
  • RWA and PSM vault Stability Fees increase 43x vs 2022, from 1.5 million to 64.9 million Dai, making up 60% of total protocol Stability Fees.
  • Liquidation revenue of 0.4 million Dai, a 98% decrease (28.4 million) from 2022.
  • Total Dai supply increased slightly, by 1.6%, from 5.14 billion to 5.22 billion.
  • The DSR was increased above 1 basis point for the first time since March 2020, resulting in 1.47 billion Dai locked in the DSR at year end and 32.7 million Dai distributed from the protocol for the year.
  • A 15.6% increase in net protocol earnings, from 18.8 million to 21.7 million Dai, inclusive of MKR token expenses.
  • RWA vault balances increased 282%, from 640 million Dai to 2.44 billion Dai, driven by an increase of 1.68 billion Dai allocated into vaults which deployed into short duration US Treasuries. 
  • Crypto vault balances increased 81%, from 1.3 billion to 2.4 billion Dai, driven by a 189% increase in stETH Vaults (214 million to 618 million Dai in 2023). 
  • MKR burns and Dai/MKR LP purchases increased roughly 3x from 2022, from 20.1 million Dai to 59.6 million Dai.

PDF | PDF (IPFS)

EPUB | EPUB (IPFS)

2023 was a transformative year for the Maker Protocol in many ways. Most notably, Maker onboarded and ramped up two real world asset (RWA) vaults - Clydesdale and Andromeda - which deployed protocol capital into short duration US treasuries. These allocations increased the sustainability of the Maker Protocol, as it no longer has to solely rely on the crypto lending market, which is highly cyclical. Rebounding from the Q4 2022 nadir of annualized stability fee of 11.3 million Dai, the protocol exited 2023 in a significantly stronger position, with 222.2 million Dai in gross annualized protocol revenue. 

In 2023, the Maker Protocol saw:

  • Gross stability fee revenue of 107.7 million Dai, an increase of 140% (+62.7 million) from the prior year.
  • RWA and PSM vault Stability Fees increase 43x vs 2022, from 1.5 million to 64.9 million Dai, making up 60% of total protocol Stability Fees.
  • Liquidation revenue of 0.4 million Dai, a 98% decrease (28.4 million) from 2022.
  • Total Dai supply increased slightly, by 1.6%, from 5.14 billion to 5.22 billion.
  • The DSR was increased above 1 basis point for the first time since March 2020, resulting in 1.47 billion Dai locked in the DSR at year end and 32.7 million Dai distributed from the protocol for the year.
  • A 15.6% increase in net protocol earnings, from 18.8 million to 21.7 million Dai, inclusive of MKR token expenses.
  • RWA vault balances increased 282%, from 640 million Dai to 2.44 billion Dai, driven by an increase of 1.68 billion Dai allocated into vaults which deployed into short duration US Treasuries. 
  • Crypto vault balances increased 81%, from 1.3 billion to 2.4 billion Dai, driven by a 189% increase in stETH Vaults (214 million to 618 million Dai in 2023). 
  • MKR burns and Dai/MKR LP purchases increased roughly 3x from 2022, from 20.1 million Dai to 59.6 million Dai.

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