MakerDAO deploys on layer-2 network StarkNet to enhance functions of DAI stablecoin

MakerDAO is currently the 4th largest DeFi protocol as per TVL rankings with $14.24 billion in locked value.

MakerDAO, a decentralized autonomous organization serving the popular DeFi lending protocol Maker, has announced an upcoming deployment schedule on the decentralized zero-knowledge (ZK) Ethereum rollup, StarkNet.

Expected to become fully operational in the third quarter of this year as identified in the protocol’s roadmap, the integration will seek to enhance the multichain capabilities of their dollar-pegged stablecoin DAI, and associated Maker Vaults function, by striving to reduce transactional cost and throughput speed on the network.

The move is largely consistent with their overarching multichain strategy first witnessed via the launch of DAI token bridges on both Optimism and Arbitrum One in March and September 2021, respectively.

Core Unit Facilitator at StarkNet Engineering, Louis Baudoin noted that “as we see unsustainable gas fees drive more activity and users to a wider variety of blockchains, security challenges that come with bridging will continue to grow”, before stating that:

“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.”

Related: MakerDAO community proposal to replace MKR governance token

Bullish for our first Twitter Space! ️ @prose011 will be the host of this first edition in which we'll talk with @KryptoKiril from @Nexo.

Main topic: $MKR, $DAI, @Nexo and CeFi & DeFi integrations.

When?: April 21 4 PM UTC

Where?: Here, in this Twitter account! pic.twitter.com/3HmlgyCNlV

— MakerDAO Growth (@MakerGrowth) April 19, 2022

In February this year, StarkWare co-founders Uri Kolodny and Eli Ben-Sasson spoke to Cointelegraph about the scalability requirements for the cryptocurrency’s mainstream adoption. This followed the launch of their inaugural decentralized applications (dApps) on the StarkNet platform.

According to analytical data from DeFi Llama, MakerDAO is currently placed fourth in the leaderboard for total-value-locked with $14.24 billion, only behind Curve, Lido and Anchor.