Discover the new era of stablecoins. The Gelato Network and MakerDAO announce a strategic partnership in the development of a new generation of stablecoins including Dai, a decentralized stablecoin based on the Ethereum blockchain.
Dai, a decentralized stablecoin based on the Ethereum blockchain, is being integrated into MakerDAO’s protocol as collateral for the Gelato Network’s G-UNI Uniswap V3 token.
Holders of wrapped Uniswap v3 positions will be able to mint DAI with the addition of the G-UNI token, an automatic liquidity provider based on the ERC-20 protocol.
DeFi projects like MakerDAO will now be able to leverage Uniswap v3 liquidity positions as collateral with the addition of the G-UNI token.
The adoption of the G-UNI framework by MakerDAO marks a significant milestone for DeFi, as the Uniswap USDC / DAI pair will become the most liquid cryptocurrency on all decentralized exchanges (DEXs).
Due to G-UNI’s integration with Uniswap v3, liquidity providers can earn up to 100x their fees generated by Uniswap v3 by leveraging their initial liquidity position in USDC / DAI pools without acquiring additional funds up front.
All G-UNI pools are continuously monitored by Gelato bots, which reinvest fees.
Hilmar Orth, Co-Founder and Legendary Member of Gelato Network added, “MakerDAO is a pioneer in this space, and integrating the G-UNI token within the protocol is a monumental achievement for Gelato, and will greatly benefit the larger DeFi sector. The USDC / DAI G-UNI pool is only the first step, as we plan to explore integrations with more potential pools in the near future.”
If seized or frozen, USDC, a centralized cryptocurrency, would constitute 54% of MakerDAO’s collateral. MakerDAO’s USDC collateral that it holds could be shifted to G-UNI pools as collateral, reducing the risk of frozen assets significantly.
Uniswap V3 tokenizations are available from many projects, but G-UNI is the most straightforward implementation to date.” says Sam MacPherson, MakerDAO Core Developer.
“Incredibly cool integration,” added Uniswap Founder, Hayden Adams.
A custom Uniswap v3 USDC/DAI position (featuring Gelato Network) is being used to replace the PSM (peg stability module) and earn LP fees, which are used to buy and burn MKR! Money Lego, said Founder Hayden Adams.
As a result of the G-UNI/MakerDAO integration, the following parties will benefit:
- MKR Holders: Potential higher revenue for MKR holders
- MakerDAO: G-UNI as collateral has the potential to shift parts of this USDC collateral that MakerDAO holds to be utilized in G-UNI pools instead, to prevent the freezing of assets
- Uniswap Liquidity Providers: Liquidity providers on Uniswap v3 can earn up to 100x their fees earned on LP positions
- Gelato Network Community: Significant increase in G-UNI liquidity pool and reduced slippage for larger USDC/DAI trades
As part of the product roadmap, Gelato Network will unveil significant integrations and partnerships, as well as upgraded functionality and use cases over the next few months.
Visit sorbet.finance for more information or open an oasis.app Maker Vault if you’re looking for a way to automate smart contracts on Ethereum. And follow Gelato Network on Twitter for updates on smart contract automation.
ABOUT GELATO NETWORK
The Gelato Network is the first protocol that automates smart contract execution on Ethereum and beyond. On top of Ethereum, they are building the underlying infrastructure that enables reliable automation. With that, they’ve built part of the Web3 middleware stack that will enable trustless, automated flows of value between smart contracts and upcoming Layer 2 networks.
Follow them on Twitter, and join the conversation on Telegram.
ABOUT MAKERDAO
MakerDAO is a decentralized organization dedicated to bringing stability to the crypto economy. A smart contract-based autonomous system of complex algorithms allows Dai to eliminate market volatility. Dai is the world’s first decentralized stablecoin based on the Ethereum blockchain. Launched in 2017, Dai has successfully maintained a soft peg to the US dollar.blockchain to empower the economy.
MakerDAO has a presence on various cryptocurrency exchanges, partnerships with global supply chains, and agreements with non-governmental organizations that are enabling it to deliver on the promise of economic empowerment via the blockchain.
Learn more at www.makerdao.com.
First published here.
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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.
