Who are Top 10 MakerDAO CDP users?

Bowen Wang
Nov 1 · 8 min read

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.

Key Findings:

  1. The Top 10 CDP addresses account for 40.6% of the total DAI Supply
  2. The Top 100 CDP addresses account for 78.6% of the total DAI Supply
  3. 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)
  4. Top 3 CDP address participated in theDAO ICO. Their risk tolerance are very high.

1.CDP 3088

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.

*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

https://www.zerohedge.com/news/2017-07-10/one-trader-made-200m-trading-ethereumand-nobody-knows-who-tax


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.


4.CDP 111790

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


5.CDP 14290

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.


6.CDP 4242

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.


7.CDP 13917

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.


8.CDP 2406

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.


9.CDP 19514

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.


10.CDP 16843

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.

In Conclusion,

  1. DeFi is still a whales’ game.
  2. Many CDP users believe in “ETH is Money”.
  3. 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.

https://defipulse.com/

Long DeFi, Short the world

All questions and feedback are very welcome: come chat with me on discord and Try our product. You can Long ETH with up to 5x leverage and earn interest on DAI,ETH with DDEX.

DDEX

Decentralized margin trading, spot trading, and lending. Powered by Hydro Protocol.

Bowen Wang

Written by

Co-founder@DDEX, Ex Zhenfund Analyst, NYU Math & Econ

DDEX

DDEX

Decentralized margin trading, spot trading, and lending. Powered by Hydro Protocol.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade