The governance token of MakerDAO and Maker Protocol, Maker (MKR), emerged as the top gainer last week. The two protocols, based on Ethereum ETH/USD, allow for the issuance and management of the DAI (DAI) stablecoin.
| Cryptocurrency | 7-Day % Change (+/-) | All-Time High Value/Date Reached | % Change (+/-) Since All-Time High |
|---|---|---|---|
| Maker (MKR) | +29.4% | $6,339.02 On Apr 17, 2021 | -75.7% |
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Maker Shines As Terra USD (UST) Loses Its Peg
Maker appreciated last week as TerraUSD (UST) lost its peg to the dollar. The loss of the peg subsequently led to the erosion of the market price of Terra (LUNA) as well.
On March 23, Luna co-creator Do Kwon had tweeted that DAI would die by his hand.
Screenshot of Do Kwon's DAI Will Die Tweet — Courtesy Twitter
The tweet by the Luna Co-creator has not aged well and was being mocked by users on the Jack Dorsey-led social media platform.
— deep (@mrdistortion_) May 11, 2022
I’m waiting for Do Kwon’s next interview where he can apologize to the people for being arrogant and tweeting shit like “DAI will die his hands”. People have lost billions for believing in him. No matter the recovery because damage is already done.
— Ash WSB (@ashwsbreal) May 11, 2022
While DAI traded at $1 at press time, UST was down 14.6% over 24 hours at $0.17.
MKR ended the week 29.4% higher at $1,516.36 and was up nearly 0.3% over 24 hours preceding press time. The token's weekly gains exceeded those of Bitcoin BTC/USD and Dogecoin DOGE/USD.
Ethereum co-creator Vitalik Buterin said before the collapse of UST that DAI was among the only three stablecoins “that we really need.”
Maker On The Web
Maker said on Twitter over the weekend that they executed 90 liquidation auctions this week, allowing the protocol to cover 12.2 million DAI in risky debt.
During this week, the Maker Protocol executed 90 liquidation auctions, allowing the protocol to cover 12.2 million Dai in risky debt.
— Maker (@MakerDAO) May 13, 2022
You can follow all these liquidations in real time through the @MakerDAO_SAS bot, designed by the Sidestream Auction Services Core Unit.
https://t.co/0ibBZHBD7K
The project behind DAI said that there are 2.2 billion USDC and 488 million USDP ready to “work as permissionless liquidity” for the stablecoin.
“Liquidity is very important when it comes to supporting the peg during stressful times,” said Maker in a Twitter thread.
However, there are still 2.2 billion USDC and 488 million USDP ready to work as permissionless liquidity for Dai.
— Maker (@MakerDAO) May 12, 2022
Liquidity is very important when it comes to supporting the peg during stressful times.
15/ pic.twitter.com/vkZAMcL7k4
Read Next: Where Is Terra's (LUNA) Bitcoin Reserve Now?
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