MakerDAO, one of the oldest and largest DeFi protocols, is about to incorporate the ETH Layer 2 network StarkNet as part of its multichain
MakerDAO Ethereum Solution
MakerDAO, the developer of the DAI stablecoin and one of the oldest and largest DeFi protocols, is poised to incorporate the Ethereum Layer 2 network StarkNet as part of its multichain plan on April 28. The move is mostly consistent with their broader multichain approach, which was first seen in March and September 2021, respectively, with the introduction of DAI token bridges on Optimism and Arbitrum One.
Makerdao also has its own native coin (MKR), which currently has the 73rd greatest market value of $1.7 billion. The team also stated that the future changes “would most certainly boost the number of Makerdao users” at the announcement on Wednesday. Retail users will be able to use Maker Vaults to deposit collateral and make DAI once more. The engineering team has currently begun to create a multiphase plan for the integration by first building a basic cross-chain bridge linked to a wallet.
MakerDAO has already begun the multiphase integration process by constructing a connection with a wallet interface. The team will thereafter provide the ability to make quick withdrawals, near-instant DAI teleportation over Layer-2, and eventually the installation of all of MakerDAO on StarkNet.
Quotes
StarkNet engineering Louis Baudoin, said: “Projects must move on to Layer-2 to continue to serve users, and MakerDAO is partnering with StarkNet to do exactly that. With this strategy, we are positioned to cement the Maker’s Protocol’s position as the leading decentralized lending protocol in the industry, and also the status of DAI as the most decentralized, secure stablecoin.”
The Starknet Core Unit team member added: “With this strategy, we are positioned to cement the Maker’s Protocol’s position as the leading decentralized lending protocol in the industry, and also the status of DAI as the most decentralized, secure stablecoin. Through this development, Makerdao will increase its product offerings and grow alongside Ethereum.”
MakerDAO software developer Maciek Kaminski, also said: “StarkWare initially reached out to Maker and proposed working together. It made sense given StarkNet was the first ZK type rollup that had an operational and working testnet. ZK-Rollups significantly reduce the computing and storage resources required to validate blocks, something that is in high demand across varying disciplines in the blockchain industry. They ensure faster transactions and keep gas fees low, so collaborating with StarkNet to deliver this to Maker seemed a natural fit for both parties.”
