MakerDAO Massive Upgrade, A New Era For DeFi?

MakerDAO, the decentralized finance (DeFi) project behind the popular stablecoin DAI, has announced a major update called “Endgame.” Endgame is designed to enhance efficiency, resilience, and participation by applying fine-tuned AI tools to open scalable processes. The goal is to create a strong governance equilibrium that enables the permissionless growth of SubDAOs and parallelized product development in an emergent, community-driven ecosystem.

Revolutionizing DeFi

According to the announcement, The short-term objective of Endgame is to grow MakerDAO into the largest and most widely used stablecoin project within 3 years. From there, the project aims to anchor its growth in an autonomous DAO economy that ensures its growth can accelerate and safely reach any scale level without putting the resilient governance equilibrium at risk.

To achieve this goal, Endgame will be launched in five successive phases. The first phase, called Phase 0, will focus on improving the scalability and efficiency of the Maker Protocol. This will involve upgrading the system’s architecture and deploying AI tools to optimize various processes.

5 phases of Endgame.

Endgame has been defined as an update that employs AI tools and open processes to enhance efficiency, resilience, and participation.

A new publication on the Maker Forum outlines its roadmap, which includes the introduction of 5 major launch phases. pic.twitter.com/8GOkIfFADi

— Maker (@MakerDAO) May 12, 2023

Phase 1 will introduce the SubDAO framework, enabling the creation of specialized DAOs that can operate independently or in conjunction with the MakerDAO governance structure. This will allow for parallelized product development and the emergence of a community-driven ecosystem.

The SubDAOs are further divided into Facilitator & Allocator DAOs, and their genesis tokens will be distributed through the NewStable farms. This will be supported by the Smart Burn Engine, which will accumulate and burn LP tokens for NewStable against NewGovToken using protocol surplus.

Phase 2 will focus on enhancing the governance mechanism of MakerDAO to ensure that it remains resilient and adaptable as the project grows. This will involve the development of a comprehensive governance framework that incorporates the SubDAOs and ensures that they are aligned with the project’s overall goals.

Phase 3 will introduce new collateral types to the Maker Protocol, expanding its use case and increasing its adoption. This will include integrating real-world assets, such as real estate and stocks, as collateral, providing new opportunities for investors and borrowers.

Finally, Phase 4 will focus on the project’s long-term sustainability by introducing a decentralized treasury and investment strategy that will ensure the long-term growth and stability of the MakerDAO ecosystem.

MakerDAO Biggest Upgrade Yet

According to the analysis by the DeFi researcher under the pseudonym “DeFi Ignas,” To further streamline governance, MakerDAO is also introducing an AI Tools system to enable users to verify governance rules and processes or generate new governance proposals.

The Sagittarius Lockstake Engine (SLE) will incentivize NewGovToken holders to participate in governance by locking their tokens and delegating their voting power to receive rewards as NewStable income or SubDAO tokens. 

Governance participation is gamified for accessibility, which creates earning opportunities. Furthermore, To encourage participation in governance during challenging times, MakerDAO is imposing a 15% exit fee on locked tokens. Bootstrapping rewards will also be offered to join governance.

Per DeFi Ignas Analysis, the native token for gas fees will be Savings-NewStable, a tokenized version of NewStable actively earning the Savings Rate. Consensus staking will be with NewGovToken through the Sagittarius Lockstake Engine.

Overall, This latest upgrade announcement from MakerDAO represents a major step forward for the DeFi ecosystem. By reducing governance complexity and increasing efficiency, MakerDAO is positioning itself to become the world’s largest and most widely used stablecoin project while maintaining its resilience and adaptability in the face of rapidly changing market conditions and potential regulatory risks.

According to DeFi Ignas, the ultimate aim is to create an Unbiased World Currency that is not necessarily pegged to the USD.

Featured image from Unsplash, chart from TradingView.com

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