A Walkthrough of the MakerDAO Project Page
Source: https://www.tokenterminal.xyz/protocol/MakerDAO.
View Earnings: This field shows the category of the protocol’s service, its current value and estimated annual earnings on an absolute and relative basis.
View Price: This field shows the price figures for the protocol token for up to one year and 30D and 1Y Pearson correlations with BTC token price.
Overview: This field provides users information regarding the protocol’s service, the role of its native token, its backers and amount of funding raised, and type of competitors.
“Show me the money” box: This field explains in one sentence how the protocol makes money — to guide the user to better understand the supporting data presented below.
Reminder: tokens are productive assets, not speculative.
MKR Price & Annualized Earnings: These graphs indicate whether the token price is in line with the protocol’s earnings. For MKR, earnings equal to the interest paid on outstanding DAI. Earnings are distributed to MKR tokenholders via token buybacks.
DAI Total Supply & Transactions: These graphs show how much DAI is outstanding. The more DAI is outstanding and the higher the effective interest rate, the more MKR tokenholders earn. DAI transaction count indicates how DAI is used, i.e. for everyday transactions vs. store of value.
Collateral Distribution & Ratio: These graphs show the portfolio of assets that are used as collateral to back DAI and also how over-collateralized the system is. Both metrics are useful for risk management and for tracking the capital-efficiency of the MakerDAO system.
Effective Stability Fee/DSR & Interest Rate: The left graph shows the Effective Stability Fee, which equals to the weighted average of interest paid on DAI — weighted because different collateral assets have different stability fees and DSRs. DSR is the savings rate paid by MakerDAO on DAI deposits. Finally, the Effective Interest Rate shows the net earnings of the protocol.
Token Terminal provides financial and business metrics on crypto protocols — metrics we’re used to seeing applied to traditional companies, e.g the P/E ratio. Crypto protocols operate like traditional businesses, only they do it directly on the Internet.
