In this post, we are going to outline how Maker’s trading desk (the “Desk”) supports the Dai protocol and how that aligns with the Maker Ecosystem Growth Foundation’s (the “Foundation”) commitment to foster growth of the Dai system and further decentralize the MakerDAO.
Before we talk about the Desk, it’s important to remember that many independent trading ventures attend the MakerDAO weekly Governance calls. One of the core functions of the calls is to provide a platform for the decentralized community of individual and institutional MKR holders to discuss proposed changes to the Dai protocol. To help inform the debate, these numerous and disparate individuals and ventures share opinions and contribute research on granular developments in the price of Dai (see Medium post examples here and here; see also the MakerDAO Community’s Weekly Narrative). Of course, the Foundation’s Interim Risk Team also provides its relevant Dai research as input alongside other non-Foundation members. If you haven’t joined a MakerDAO Governance call, we welcome you to participate. The calls are open to the public on Google Hangouts every Thursday, 4:00 to 5:00 pm UTC.
With that context, let’s talk about Maker’s trading desk. The Desk functions as one of many operators, including similar trading ventures, active in Dai markets worldwide. Understandably, there were few liquidity providers when Dai was first launched. But as the system has grown, we’ve seen an exciting increase in the number of sophisticated institutions dealing in Dai over the past twelve months. The Desk does not have outside investors and invests its private funds to operate open source trading bots for Dai on several cryptocurrency exchanges, including Coinbase Pro.
All in all, the Foundation and the Desk support efforts to eliminate informational asymmetries in the MakerDAO ecosystem, while operating to increase market transparency and efficiency where Dai is traded.
The past year has been one of fantastic growth for MakerDAO. We believe in the power of MakerDAO to build a more open and inclusive financial system, and our commitment to foster growth of the Dai system and rapid decentralization of MakerDAO is stronger than ever.