Lending / Stablecoin

Maker (Sky)

Ethereum Data as of March 2026

Maker (rebranded to Sky in 2024) is the protocol behind DAI (now also USDS), the largest decentralized stablecoin. Users deposit collateral (ETH, WBTC, real-world assets) to mint DAI. There is no origination fee; the cost is the Stability Fee, a variable annual interest rate on outstanding DAI.

Fee per Transaction

0.00%

No origination fee; cost is stability fee (borrow APR)

Round Trip Cost

$0.00

Buy + Sell on $1,000

TVL

~$8B

Largest DeFi stablecoin issuer

How It Works

Users open a vault, deposit collateral, and mint DAI up to the collateralization ratio (typically 150%+). The Stability Fee accrues continuously and is paid when closing the vault. If collateral value drops below the liquidation ratio, the vault is liquidated with a penalty.

DAI Savings Rate (DSR) allows DAI holders to earn yield by depositing into the savings contract. The DSR is funded by Stability Fees and has been a key driver of DAI adoption.

Maker has significantly expanded into RWA (real-world assets), with US Treasuries and money market instruments backing a growing portion of DAI supply.

Strengths

+Decentralized stablecoin. DAI maintains its peg through overcollateralization, not centralized reserves.

+Longest track record. Operational since 2017 through multiple market crashes. The most battle-tested DeFi protocol.

+RWA integration. Real-world asset backing provides stable revenue and diversifies collateral beyond crypto.

Risks

xLiquidation risk. Vault holders can be liquidated with a 13% penalty if collateral value drops sharply.

!Governance complexity. MKR governance controls critical parameters. Bad governance decisions can affect DAI stability.

!Centralization in collateral. Growing reliance on USDC and RWAs introduces centralized counterparty risk.

Open Sky/Maker ↗ Compare Fees ↗

Disclosure: This profile is provided for informational purposes only. White & TT does not hold a position in MKR. Fee data reflects publicly documented parameters as of March 2026. Always verify current fees on the protocol. This is not financial advice.

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