MakerDAO Increasingly Reliant on Centralized Collateral

Author: LongHash Nick Chong Between 2018 and 2019, the leading DeFi protocol MakerDAO encountered difficulties in growth. The protocol provides users with decentralized loans paid in multi-collateral dollar stablecoin DAI (MCD), yet the value locked in its contract stalled at $300 million. This situation changed in recent months. Now nearly $2 billion worth of various cryptocurrencies are locked in MakerDAO's contracts, driving an increase in DAI circulation.