The Ethereum-based lending platform Maple has signed a partnership with MakerDAO to scale the new DAI coins. Maker believes it can find a long-term solution for scalability in Maple through collateral sources like Real World Assets and the Direct Deposit Module. This strategic integration will use the capital infrastructure of the DAI stable cryptocurrency and hopes to get the supply to $100 billion.
As per the statements from Lucas Manuel, Ethereum Smart Contracts Tech Lead at Maple, the DAI token supply reached $10 billion from a mere $100 million last summer. Such a surge has to do with the demand for DAI in leveraging crypto assets. Despite the growth, the market slowly fell out of favor of volatile digital currencies and supported stablecoins like USDC. Now, to sustain this shift in the market, MakerDAO has proposed a venture into a couple of alternative sources; Real-World Assets (RWA), DAI Direct Deposit Module (D3M).
Maple will play a pivotal role in Maker’s plans to explore these two collateral sources. This lending platform uses pool delegates and aggregates capital from both independent and institutional investors. The platform has managed to carry out $1 billion in loans and is currently responsible for administering $850 million. MakerDAO hopes that Maple’s peculiar positions would help DAI with the collateral mentioned above. The integration will also explore implementing the D3M model on Maple’s LP tokens, which are currently entirely backed by Real World Assets.
According to Maker, loans backed by Real World Assets, however familiar they may be, are not in line with decentralization. Furthermore, it involves a tiring legal process instead of the swiftness for which the blockchain industry is known. Maker’s D3M protocol would answer this issue by minting the DAI tokens in any network and backing them up with LP tokens from Maple. In this model, Maker will be able to provide liquidity to the more significant part of the ecosystem with the lowest cost of capital possible. If this end is achieved, the D3M will be the “Central Bank of DeFi.”
However, the plan comes with its own set of limitations as well. Firstly, the current model of the plan is restricted to a fraction of the global financial market, and the number says that it is less than 1%. Moreover, scaling DAI would be an issue when the plan is of such ambitious heights. Nonetheless, MakerDAO’s creator Sam McPherson believes that the partnership with Maple comes as the first step towards it. With this integration, MakerDAO’s future roadmap hints at institutional level plans like Nuclear Research, Sustainable Energy, Chain Optimization, Neurological Advancements, Multi-chain Connectivity, and more. Maker also landed an $8 million real estate deal for Tesla recently.