RWA holdings helped MarkerDAO gain profits amidst ongoing turmoil

RWA holdings helped MarkerDAO gain profits amidst ongoing turmoil

written by John Murphy | March 18, 2023

Amidst an ongoing stablecoin turmoil, RWA holdings helped MarkerDAO gain profits.

RWA or Real-World Assets are tangible and traditional assets used as collateral to back the value of cryptocurrency including stablecoin. For instance US treasury bills, bonds, or other types of securities. They help maintain the stability and value of decentralized assets. Somehow it provides a bridge between the financial system and the world of cryptocurrencies.

MarkerDAO was able to gain a profit of $3.8 million using its RWA holdings. These holdings contributed to raising the value of MarkerDAO almost making up 11.6% of the holdings as indicated by certain data.

Profit and Loss statement of MarkerDAO

The profit and loss (PnL) of MarkerDAO, due to the high expenses of upgrades and updates, represents a negative outlook. Indicating that a substantial amount of the earnings are going towards the improvement and maintenance of its protocols.

Consequently, the expenses outweigh the earnings. resulting in a net loss for MarkerDAO. Despite being financially challenged MarkerDAO still making efforts to improve its protocol. They have put forth a proposal to create PSM circuits which shows their dedication to improving their system. Moreover, It will allow Marker governance to disable the specific PSM feature without any delay in the governance.

Marker’s this dedication to maintaining stability in the face of market volatility shows how seriously they take this issue. Which certainly is an essential quality for a stablecoin. Also, they are shooting for the long-term progress of the protocol thus incurring expenses in the short term.

State of the Volume of the protocol

MArkerDAO has certainly maintained its momentum throughout the market turmoil. the stablecoin was able to experience an increase of 55% in volume over the last few months. However, the number of unique users decreased by 14% which affected the MarkerDAO overall TVL.

Hike in Whale interests.

MarkerDAO MKR token’s price was affected by the decrease in TVL. Nonetheless, Whale interest witnessed a significant surge. This was particularly due to the recent and sudden surge in the market cap of DAI. The increased interest in MKR and DAI is an indicator of substantial progress in the future.