Maker DAO was booming, with interest in DeFi increasing until mid-November. The practice of crypto-collateralized lending boomed at a time when Ethereum (ETH) prices remained stable, and Bitcoin (BTC) appreciated.
However, the recent market shakedown revealed the fragility of the DeFi sphere. ETH crashed from levels above $180, correcting to $138.33. For Maker DAO, this meant an immediate outflow of staking, as well as liquidations.
Immediately, the supply of single-collateral DAI shrank from above 102 million to 84 million. The supply shrank just days after Maker DAO held a vote to increase the maximum supply to 120 million DAI.
Collateralization also fell to 295%, from a recent peak above 360%. ...