The term “DAO” started off with a bad reputation in the crypto community, but eventually shed its hacker image and became recognized as a future-oriented idea. The latest announcement from MakerDAO has the potential to further redefine what a DAO is capable of.
TradFi & DeFi Trust Agreement
In order to onboard collateral, MakerDAO revealed that a US-based bank had submitted an application. According to the application,
“A Trust Agreement will establish The Multi-Bank Participation Trust for the benefit of MakerDAO as a separate, bankruptcy-remote entity, with a regulated Delaware Corporate Trustee who will verify that all material actions of the Trust are carried out in accordance with MKR votes.”
The bank is interested in entering into a Master Purchase Agreement with MakerDAO, for a participation trust. For the TradFi x DeFi integration to happen, MakerDAO’s governance community members need to approve it.The DAI stablecoin will likely play a major role in the arrangement if the proposal is approved.
What Makes MakerDao Unique?
Does it make sense for this project? Let’s see how the metrics look.
On the day of publication, MKR was trading at $2,004.74, down 0.16% from the previous day. At press time, transaction volumes were also falling, despite the strong rally in MKR since mid-March.
Thus, the MVRV ratio turned positive for the token after 30 days. It suggests, on average, that investors are seeing profits, which is good news for bulls. However, the MVRV ratio was falling around press time, which could indicate a price fall.
Still, the high level of development activity is a positive sign. It shows faith in the project’s chances of becoming a long-term success when technical creators and builders add more to it. Dev activity in this area is on the rise and bodes well for both MKR and DAI.
DAO started off on the wrong foot with the crypto community, but soon shed its hacker image and became recognized as a future-facing trend. Currently, an announcement from MakerDAO may change what a DAO can, or can’t, do.
MakerDao Trust Agreement Application
In order to onboard collateral, MakerDAO shared that a US-based bank has submitted an application. The application stated,
“A Trust Agreement will establish The Multi-Bank Participation Trust for the benefit of MakerDAO as a separate, bankruptcy-remote entity, with a regulated Delaware Corporate Trustee who will verify that all material actions of the Trust are carried out in accordance with MKR votes.”
This just means that the bank wants to enter into a Master Purchase Agreement with MakerDAO, for a participation trust. However, MakerDAO’s governance community members need to vote in favor of this, for the proposed TradFi x DeFi integration to take place.
More information about the role of the DAI stablecoin in the arrangement will likely come if the proposal goes through.
Recent MKR Stats
There are plenty of DAOs in the sea, so why is MakerDAO so special? And was it the right choice for this venture? Let’s take a look at what the metrics have to say.
At press time, MKR was trading at $2,004.74, having fallen by 0.16% in the past 24 hours. What’s more, transaction volumes at press time were also on the fall, in spite of MKR’s strong rally since mid-March.
However, the token’s 30-day MVRV ratio turned positive. Bulls should take heart from this because it indicates that, on average, investors are seeing profits. At press time, the MVRV ratio was slipping, which could indicate that the price is falling.
Source: Santiment
The good news is that development activity has been on an upward trend. It shows faith in a project’s chances of success when builders and creators contribute more to it. The nearly vertical rise in developer activity benefits both MKR and DAI.
Source: Santiment
Finally, the Adjusted Price DAA Divergence metric flashed green “buy” signals, which most potential investors would take as a buy signal. Late in January, however, was the best time to buy the dip. During March, the green bars have been falling, indicating a possible change.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
