SDAI TVL up 1,170%, DAI supply falls 13%

SDAI TVL up 1,170%, DAI supply falls 13%

sDAI TVL rose 1,170%, while DAI supply fell 13% since mid-June.

Savings DAI, the yield-bearing version of makerDAO's decentralized stablecoin, has surpassed a total worth locked at $1B.

The news was announced by SparkDAO, a lending market in DAI, and the first subDAO of MakerDAO. The interest earned by sDAI tokens accrues, with yields programmed to fall as adoption increases. While the rate hike quickly ramped up the adoption of Spark Protocol and sDAI, makerDAO's founder, Rune Christensen, recommended capping DSR yields at 5% within 48 hours of upping returns.

The total value locked in Maker's DSR is $1,65B, up 1,170% since June 19, while the circulating DAI supply is down 13.6 percent over the same period. The rate hike shows that existing DAI holders make up the lion's share of sDAI holders, rather than new users.

The DAI's capitalization is also down 62% from its all-time high of $3.8B in February 2022, according to CoinGecko.

The MKR token has seen consistent price gains in recent months, but Maker's MKR token has seen a consistent rise in value. MKR has been trading for $1,452 - a 111% increase since June 30.

To attract new users, Spark Protocol has been pursuing expansion into existing chains within Ethereum's broader ecosystem.

On Sept. 18, MakerDAO governance unanimously passed the preliminary poll for a proposal to deploy Spark on Gnosis Chain, an Ethereum side-chain.

On August 1, Polygon also published a proposal advocating for Spark's deployment on its flagship layer 2 network, polygon zkEVM. There has been no significant progress so far on the plan, he said.