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

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

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

Savings DAI, the yield-bearing version of MakerDAO's decentralized stablecoin, has exceeded a total value locked at $1B.

SparkDAO, a lending market in DAI and the first subDAO of MakerDAO, announced the news. As adoption increases, sDAI tokens gain interest from the DAI Savings Rate, with yields programmed to drop as demand for the tokens decreases. While the rate hike quickly ramped up, MakerDAO founder Rune Christensen recommended capping DSR yields at 5% within 48 hours of upping returns.

Dune Analytics calculated that the total value of Maker's DSR has been $1,65B, up 1,170% since June 19 and the circulating supply of DAI down 13.6 percent over the same period. The continued decline in the market cap of DAI despite a rate hike shows that existing DAI holders make up the lion's share of sDAI holders rather than new users.

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

The MKR token's price has remained consistent over the last few months. MKR last changed hands for $1,452 - a 111% increase since June 30.

With the help of Spark Protocol, it is now seeking to expand onto new chains within Ethereum's broader ecosystem to attract new users.

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

On Aug. 1, Polygon published a proposal advocating for Spark's deployment on its flagship Layer 2 network, Polygon zkEVM. However, no progress has been made on the proposed plan since then, the report said.