MakerDAO received an influx of 2,500 BTC in 48 hours as the wrapped bitcoin-lock in increased by 1,921% as we are reading in today’s Maker news.
MakerDAO received an influx of 2500 bitcoin in the past two days after the lending protocol on Ethereum got only 130 bitcoin in the form of WBTC on May 20. The number increased to 2,628 soon. MakerDAO is a decentralized lending protocol built on Ethereum which issues the DAI Stablecoin in return for ETH collateral. BTC can be represented on Ethereum but in a form of wrapped Bitcoin.
— Emiliano Bonassi | emiliano.defi-italy.eth (@emilianobonassi) May 21, 2020
The sudden influx coincides with the huge 1,500 BTC order that was poured into MakerDAO on May 21 and the event was closely supervised by the DeFi developer Emiliano Bonassi at the time. The two major spikes on the graph could be suggestive of the notion that only two people or small groups were responsible for the influx. It could also be likely that just one customer made two different orders.
Either way, the sudden influx of 2,500 WBTC that Maker DAO received, means that right now there is more BTC in the Maker protocol alone than on the entire Lighting Network. The data from Bitcoin Visuals show that about 900 BTC stored on the Lightning Network can be spotted at the time of writing. In dollar terms, it means that there are over $24 million BTC being used on MakerDAO versus the $8.2 million on the Lightning Network. The LN was explained as a two-layer scaling solution for the number one cryptocurrency Bitcoin but it got a lot of criticism from the onlookers because it was seen as a centralized solution and raised many security concerns.
While the entire concept of Ethereum is representing a better home for Bitcoin than Bitcoin itself, it’s a very interesting concept actually. However, it does seem problematic. The average fees on the Ethereum network still increase which is caused by the multi-level marketing scheme that operates on the Ethereum blockchain.
As per the recent MakerDAO news, The MakerDAO Liquidity issues led to the protocol officially shutting down the Single-collateral DAI and now it will also fully transition to the Multi-Collateral DAI system.
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