Among all the Ethers locked down as collateralized debt positions (CDP) on decentralized finance (DeFi) platform MakerDAO, 42 percent are stored in only two wallets.
As reported by Cointelegraph, the figure was revealed by financial technology data firm Digital Assets Data.
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Out of the two wallets, one holds 27 percent of the digital assets of the locked CDPs, while the other contains 15 percent.
“There is one address that maintains 27% of the value locked in CDP’s. Likewise, the new Vaults system has a similar distribution, with one address holding 15% of the value locked. As Maker continues to grow, we will see how these distributions play out and if there is more adoption within the lower bins,” Brandon Anderson, a data science lead at the research firm, told the publication.
A much sought DeFi project
MakerDAO is one of the hyped projects in the DeFi arena. It allows users to borrow or generate stablecoins by stalking their digital asset holdings as collateral. Notably, the issued stablecoin DAI is generated by putting Ether on a CDP smart contract, rather than the usual practice of backing stablecoins with fiats.
As Finance Magnates reported earlier, the platform hit its debt ceiling of issuing $100 million worth DAI last November, which was then pushed to $120 million.
At the same time, a multi-collateral version of the stablecoin – multi-collateral Dai (MCD) was introduced, which allows generating DAI not only under collateral in Ethereum but also in other cryptocurrencies approved by the community.
The report also outlined that around 155,000 CDPs were initiated on the old version of the decentralized project, and 77 percent of those addresses hold less than 0.05 ETH.
“It is possible that one or more of those addresses could be smart contracts that contain ETH as a part of MakerDAO, and do not represent a single entity. Without a significant amount of additional research, we cannot commit to singling out/identifying these addresses,” Anderson added.