According to the findings revealed by Digital Assets Data on January 26, a single ETH address holds twenty-seven (27) percent of all the ETH locked in the collateralized debt positions (CDPs) of the old MakerDAO system.
Dai came up with MakerDAO for borrowing or generating the stablecoin by staking their crypto holdings as collateral. There was no support for Dai with bank accounts of reserve currencies, but its generation was through putting Ether into a CDP smart contract.
Two months ago, the Dai stablecoin attained a peak of 100 million token debt and offered multi-collateral Dai (MCD) the many assets back.
Ether was used to generate the old single-collateral Dai called Sai while the new MCD is now known as Dai. Various assets? CDPs were rebranded as vaults, that is, Ether is stored in an Ether vault, while Basic Attention Tokens (BAT) are stored in a BAT vault.
Digital Assets Data stated the initiation of 155k CDPs on the old version of the Maker protocol and 77 percent of those stored were below 0.05 ETH.
According to Brandon Anderson at Digital Assets Data, one address contains 15 percent of the value locked in the new vaults system. As Maker continues to grow, the focus remains on distributions and more adoptions within the lower bins, he said.
Although Anderson noted that these addresses may not be a single entity, some of them may be smart contracts containing Ether as part of MakerDAO. More research is required to single out or identify these addresses.
In his conclusion, some big players exist and could be capable of controlling an inordinate amount of locked ETH in the ecosystem while there has been increment in the amount of aggregate locked assets over time, and there is room for participation as regards the protocols.
Digital Assets Data stated that more than 3,500 vaults have been created and the majority contain more than 1 ETH.
As of the time of writing, DeFiPulse said the aggregate value of funds locked in DeFi apps has attained $793.1 million and more than 57 percent valued at $453.5 million is in the MakerDAO system.
Featured image courtesy of CoinDesk.