When people talk about DeFi, the first project that comes to mind is MakerDAO.
MakerDao collaborated with Coinbase Earn to teach 100,000 U.S users how to lend and earn interest on their assets directly through smart contracts.
Recently, DragonFly Capital organized a series of roadshows for MakerDAO in China, which also made one of the earliest ETH DAO projects more popular in Asia Market.
During Rune’s visit in China, he has mentioned:
“Makerdao smart contract’s annual revenue exceeds 12 million USD. The annual expense is less than 200,000 USD. The performance of the SMART CONTRACT is impressive.”
At the time, I was very curious about where the $12 million revenue came from.
We all know:
Revenue = Stability fee x Total supply of DAI x Time
But who are the ones who paid the Stability fee?
So I conducted an analysis of the top10 CDP addresses.
- The Top 10 CDP addresses account for 40.6% of the total DAI Supply
- The Top 100 CDP addresses account for 78.6% of the total DAI Supply
- As for the Top 10 addresses, 1 was an early ETH ICO project (Request Network), and 3 were ETH ICO participants (parent accounts are Genesis Block participants)
- Top 3 CDP address participated in theDAO ICO. Their risk tolerance are very high.
Mr. 3088, low-risk, long-term, low-leverage user, ETH ICO participant. On July 30, 2015, Genesis Block, he invested 100BTC,(equivalent to investing 28,000 US dollars) and got 200,000 ETH (ETH ICO ratio, the first two Week 1 BTC = 2,000 ETH)
On May 14th, 2016, 3088 participated in The DAO ICO and invested all 200,000 ETH. On June 12, 2016, the DAO code risk was exposed and the hacker could move all ETH out from the smart contract. By June 18, more than 3.6 million ETHs had been stolen. On June 17, Vitalik announced a proposal for the hard fork. Subsequently, for the first time the Ethereum community experienced a hard-fork choice. Everyone wavered, and the price of ETH fell from $20 to $13.
For Mr.3088, it was likely to be the most painful 30 days of his life. All of 3088’s investment may have vanished and the DAO tokens in hand had almost zero value.
On July 30, 2016, after the hard fork of ETH, Mr.3038 quickly withdraw all the ETH out. At the same time, he got 2700 ETC through ReplaySafeSplit-contract. The strange thing is, why didn’t Mr.3038 withdraw the remaining 190,000 ETC?
After 2018, Mr.3088 mainly traded on ETH2DAI, earned more ETH, tried Compound, but did not put a lot of assets on it. In June 2017, Mr.3088 received a free airdrop of 15,000 OMG, with a peak value around $370,000. And Mr.3088 didn’t sell any. Mr.3088 is staying away from ICO after the DAO hack for good.
Since December 17th, Mr.3088 has been transferring to the exchanges of Kraken, Bitfinex, Gemini about 1000 ETH per order. With the dollar cost average, he sold around 40,000 ETH. After two and a half years of waiting, even at the current ETH price 160 dollars, the profit is still more than 6.4 million dollars, and there are still 200,000 ETH in the account.
For Mr.3038, MakerDAO’s $720,000 stability fee per year is totally affordable for his portfolio. As an investor who is optimistic about ETH prices for long term, it only needs ETH to increase 5 dollars to cover the stability fee for one year.
Mr.3038 holds $36 million worth of 200,000 ETH through a cost of $28,000 in 2015. For him, the so-called over collateralization is actually to putting the $28,000 chip from 2015 and get the $8.2 million DAI credit loan out in 2019.
Collateralize : 178,921 ETH
Generate: 8,280,868 DAI
Mortgage rate: 26.53%
CDP Open duration: 11 months
Contract interaction: 71 times
Stability fee: 722,986 USD
Parent account: 0xa1a45e91164cdab8fa596809a9b24f8d4fdbe0f3
*Parent account : The origination of the capital inflow.
2. CDP 15336
Mr.15336, low-risk, arbitrage user, DSProxy contract user. The contract can be used to do arbitrage in CDP Keeper, or manage CDP risk. Mr 15336 has the capability to run smart contracts. 15336 owns 1.5% of MKR
An ETH ICO Participant, on July 30, 2015, Genesis Block, Mr.15336 invested 500 BTC, equivalent to investing $140,000, and recieved 1 million ETH (ETH ICO ratio, 1 BTC = 2,000 ETH for the first two weeks)
In 2016, Mr.15336 turned to be an Ethereum miner, mining in NanoPool, digger.ws (European mining pool) and Dwarfpool, with an daily average 5 ETH income.
Mr.15336 has been a very active ICO participant, investing in more than 20 ICO projects. Beginning on November 11, 2016, Mr 15336 invested in the Golem ICO (15,000 ETH), Gnosis (2000 ETH), and Digix (8500 ETH). On April 30, 2017. Mr 15336 purchased 15,000 MKR and 610,000 EOS. The largest investment is in the DAO project, investing 200,000 ETH, and participating in multiple rounds of The DAO vote in June 2016. Finally, on July 20, 2016, 84,000 ETH was withdrawn from The DAO withdrawal contract. Some of the DAO tokens may have been sold on the exchange during the period.
A full list of the ICO’s 15336 participated in: Melonport, Iconomi, MakerDAO, Golem, Augur, Gnosis, EOS, Firstblood, RLC, Pluton, SingularDTV, Propy, ZRX, Request, Grid + , Qtum, Bancor, Aragon, Storj, Tron, AE, AION, RDN, and REN.
Beginning in March 2016, Mr 15336 traded on all major exchanges, including Liqui, Bittrex, OKEX, Bitfinex, Binance, Huobi and BTC-e, which was shut down by the US government. The user’s address was also marked on Etherscan as a 200 Million Trader.
In July 2017, Bloomberg reported that this address earned $200 million in profits, but the government was unable to tax the person because they did not know who the person was.
Fun Fact: Mr 15336 is a philanthropist: Donated 3 ETH to Mycrypto
Collateralize: 141,405.38 ETH
Generate: 7,332,000 DAI
Mortgage rate: 29.72%
CDP Open duration: 8 months
Contract interaction: 260 times
Stability fee: $256,632.33
Mining address: 0x7aa534c9b18d6f4117301971962986467e74eed1
Parent account: 0x1C11BA15939E1C16eC7ca1678dF6160Ea2063Bc5
Parent account: 0x1937c5c515057553ccbd46d5866455ce66290284
Parent account: 0x60e16961ad6138d2fb3e556fc284d9c2fff41486
3. CDP 12826
Ms.12826 Low-risk, long-term, low-leverage users, DSProxy contract users, the specific function can be arbitrage in CDP Keeper, managing CDP risk.
Ms.12826 is Ethereum early investor. On August 14, 2015, Ms.12826 withdraw 51,000 ETH from Kraken. Ms.12826 also participated in The DAO ICO, and invested 25,000 ETH. Parents’ accounts have multiple smart contracts deployed. Ms.12826 looks like to be a contract developer. Ms.12826 holds $250,000 in MKR tokens, a loyal fan of MakerDAO.
Ms 12826 has very few on chain transaction , no more data to analyze.
Collateralize: 48,017.579 ETH
Generate : 3,599,610.27
Mortgage rate: 42.97%
CDP Open duration: 9 months
Contract interaction: 36 times
Stability fee: $241,596.38
Parent account: 0xE4e48ee538c088c0430c840BaF55eAEd6a256227
Parent account: 0x6e533c7fB353BD5d3c7f9f9Cc219C9666EdC1ce1
Parent account: 0x2227E7ACda025ebA3b07312D60654965c37F518f
Parent account: 0x653a92D29Da111e0912b4C01eD453c2e2De73170
Parent account: 0xe97B9678412991119350f4E4CD63bd42E2068Ba7
Mr. 111790 is a low risk, low leverage user.
Mr. 111790 is also Compound user, deposited 58,000 ETH, borrowed 4.45 million USDC H and 130,000 DAI, Compound interest fee: $238,242.93
The address was activated on September 11, 2016. It is suspected that after The DAO Hack, the new address was used for coin mixing through Poloniex. Mr. 111790 traded on ETH2dai with more than 4,000 transactions.
Mr. 111790 prefers to trade on Poloniex, Bittrex, Gemini.
ICO Investment List: RDN, BLZ, FUN, FOAM
Collateralize: 49,855.293 ETH
Generate : 3,420,427
Mortgage rate: 39.33%
Liquidation price: $102.91
CDP Open duration: 1 month
Contract interaction: 164 times
Stability fee: $36,661.76
Parent account: 0x5d76A92b7cB9E1A81B8eb8c16468F1155B2f64f4
Ms.14290 is a low-risk, low-leverage, mid-term user, DSProxy contract user.
The address was activated in November 2016. Hitbtc, Bittrex traders.
Ms.14290 has very few on chain transaction , no more data to analyze.
Collateralize: 40,674.494 ETH
Generate: 3,420,427 DAI
Mortgage rate: 38.05%
Liquidation price: $99.57
CDP Open duration: 6 months
Contract interaction: 43 times
Stability fee: $165,555.87
Mr.4242 is a low-risk, low-leverage user, DSProxy contract user.
Mr.4242 seems to use Ethereum mixer to protect his privacy.
Mr.4242 has very few on chain transaction , no more data to analyze.
Collateralize: 37,654.456 ETH
Generate : 2,510,508.72 DAI
Mortgage rate: 38.22
Liquidation price: $100
CDP Open duration: 2 weeks
Contract interaction: 201 times
Stability fee: $75,340.87
Ms. 13917, Request Network , is a low risk, long-term, low leverage, and DSProxy contract user.
Request Network, the German project raised 100,000 ETH on October 13, 2017. The goal of Request Network is to make it easier for people to collect, pay, and transfer money.
Through its Multisig wallet, Request Network collateralized ETH and managed DAI. Of the Top 10 CDP addresses, this is the only one which was used by token project to fund their operation.
Collateralize: 25,113.59 ETH
Generate : 1,870,030 DAI
Mortgage rate: 44.91
Liquidation price: $111.69
CDP Open duration: 9 months
Contract interaction: 18 times
Stability fee: $105,260.09
Mr.2406 is a low-risk, long-term, low-leverage and DSProxy contract user.
An Ethereum ICO Participant, on July 30, 2015, Genesis Block, Mr.2406 received 66,800 ETH. However, after getting the ETH token, he didn’t touch the account for 2 years.
Mr.2406 spent 26,000 ETH on registrate ENS. Mr.2406 frequently bid on various ENS. If ENS market is really as large as the domain name market size. It would make a fortune for Mr.2406.
Collateralize: 46,668.089 ETH
Generate : 1,700,000 DAI
Mortgage rate: 20.88%
Liquidation price: $54.64
CDP Open duration: 12 months
Contract interaction: 8 times
Stability fee: $170,972.5
Ms.19514 is a low-risk, low-leverage user, the address is a DSProxy contract. Ms.19514 owns $50,000 USD MKR.
The address was activated in October 2018. 19514 is a Binance user.
Ms.19514 has very few on chain transaction , no more data to analyze.
Collateralize: 21,672.625 ETH
Mortgage rate: 39.67%
Liquidation price: $103.81
CDP Open duration: 3 months
Contract interaction: 9 times
Stability fee: $44,427.5
Parent account： 0x368f6eCc0F2F201d73e98c99E558AABb349Ff29E
Mr.16843 is a high-risk, high leverage, DSProxy user.
Mr.16843 is ETH2dai user, managed multiple CDPs simultaneously, 16707, 16619.
The address was activated in March 2017. 16843 is a Poloniex, Kraken, Bitfinex, and Binance user.
Ms.16843 has very few on chain transaction , no more data to analyze.
Collateralize: 14,874.023 ETH
Generate: 1,445,000 DAI
Mortgage rate: 55.69%
Liquidation price: $145.72
CDP Open duration: 6 months
Contract interaction: 29 times
Stability fee: $42,819.68
- DeFi is still a whales’ game.
- Many CDP users believe in “ETH is Money”.
- Average Transaction size for Top 100 CDP users is around 300,000 DAI.
DeFi is still at the very beginning period where majority users are Crypto Native users from early Ethereum believer. However, the growth is self-explanatory.