MakerDAO, the decentralized finance (DeFi) project behind the popular stablecoin DAI, has announced a major update called “Endgame.” Endgame is designed to enhance efficiency, resilience, and participation by applying fine-tuned AI tools to open scalable processes. The goal is to create a strong governance equilibrium that enables the permissionless growth of SubDAOs and parallelized product development in an emergent, community-driven ecosystem.

Revolutionizing DeFi

According to the announcement, The short-term objective of Endgame is to grow MakerDAO into the largest and most widely used stablecoin project within 3 years. From there, the project aims to anchor its growth in an autonomous DAO economy that ensures its growth can accelerate and safely reach any scale level without putting the resilient governance equilibrium at risk.

To achieve this goal, Endgame will be launched in five successive phases. The first phase, called Phase 0, will focus on improving the scalability and efficiency of the Maker Protocol. This will involve upgrading the system’s architecture and deploying AI tools to optimize various processes.

5 phases of Endgame.

Endgame has been defined as an update that employs AI tools and open processes to enhance efficiency, resilience, and participation.

A new publication on the Maker Forum outlines its roadmap, which includes the introduction of 5 major launch phases. pic.twitter.com/8GOkIfFADi

— Maker (@MakerDAO) May 12, 2023

Phase 1 will introduce the SubDAO framework, enabling the creation of specialized DAOs that can operate independently or in conjunction with the MakerDAO governance structure. This will allow for parallelized product development and the emergence of a community-driven ecosystem.

The SubDAOs are further divided into Facilitator & Allocator DAOs, and their genesis tokens will be distributed through the NewStable farms. This will be supported by the Smart Burn Engine, which will accumulate and burn LP tokens for NewStable against NewGovToken using protocol surplus.

Phase 2 will focus on enhancing the governance mechanism of MakerDAO to ensure that it remains resilient and adaptable as the project grows. This will involve the development of a comprehensive governance framework that incorporates the SubDAOs and ensures that they are aligned with the project’s overall goals.

Phase 3 will introduce new collateral types to the Maker Protocol, expanding its use case and increasing its adoption. This will include integrating real-world assets, such as real estate and stocks, as collateral, providing new opportunities for investors and borrowers.

Finally, Phase 4 will focus on the project’s long-term sustainability by introducing a decentralized treasury and investment strategy that will ensure the long-term growth and stability of the MakerDAO ecosystem.

MakerDAO Biggest Upgrade Yet

According to the analysis by the DeFi researcher under the pseudonym “DeFi Ignas,” To further streamline governance, MakerDAO is also introducing an AI Tools system to enable users to verify governance rules and processes or generate new governance proposals.

The Sagittarius Lockstake Engine (SLE) will incentivize NewGovToken holders to participate in governance by locking their tokens and delegating their voting power to receive rewards as NewStable income or SubDAO tokens.

Governance participation is gamified for accessibility, which creates earning opportunities. Furthermore, To encourage participation in governance during challenging times, MakerDAO is imposing a 15% exit fee on locked tokens. Bootstrapping rewards will also be offered to join governance.

Per DeFi Ignas Analysis, the native token for gas fees will be Savings-NewStable, a tokenized version of NewStable actively earning the Savings Rate. Consensus staking will be with NewGovToken through the Sagittarius Lockstake Engine.

Overall, This latest upgrade announcement from MakerDAO represents a major step forward for the DeFi ecosystem. By reducing governance complexity and increasing efficiency, MakerDAO is positioning itself to become the world’s largest and most widely used stablecoin project while maintaining its resilience and adaptability in the face of rapidly changing market conditions and potential regulatory risks.

According to DeFi Ignas, the ultimate aim is to create an Unbiased World Currency that is not necessarily pegged to the USD.

MKR, the native token of the Maker Protocol, has recorded substantial gains despite the most recent market downturn. After news of FTX’s liquidity crisis rocked the crypto market, several coins have struggled to bag daily gains to no avail. However, MakerDAO’s governance token has experienced an impressive surge today. Specifically, MKR trades at $873 press time, gaining over 26% on the day.

Despite the huge jump in the day, Maker still hasn’t recovered its weekly losses. However, if its bullish trend continues, it might fully recover in a short time.

MKR Surges As Bullish Momentum Kicks In

After a steep drop and sell-off over the last day, bulls have succeeded in turning around the Maker’s (MKR) negative trend. MKR’s price increased by $177.40, or 13.64 percent, to $840 during this recovery. The main catalyst for the price surge is an increase in 1-day trading activities and market cap. Specifically, MKR saw a 27.26% increase in its market capitalization and a 15.37% surge in trading volume.

MKR’s gains were most felt in the DeFi sector of the Maker Protocol. According to a Token Terminal Intern on Twitter, the DeFi sector lost around 20% of its total value locked in the last 24 hours. This is unsurprising and expected due to FTX’s controversy. However, despite the downturn, Maker recorded an increase in its TVL. Precisely, Maker saw a TVL increase of 28% over the same period.

This increase results from the recent surge in borrowing activities on the platform. As per the thread, Token Terminal Intern noted that the top-three lending protocols, including Maker, facilitated $27B worth of trading volume. The account mentioned that the increase resulted from traders fleeing centralized exchanges due to the FTX collapse.

What The Charts Say About MKR’s Movement

The intersection of the upper and lower Bollinger Bands is located at 780 and 615, respectively. The widening of the bands indicates a rise in trading activity, which may lead to a price breakthrough.

Since the market has broken out above the upper range, bulls appear to be in control, and this upward trend might continue for a while. The RSI is currently at 57.45, which has been quite constant over the past few hours. As a result, the MKR market shows signs of balance between buyers and sellers, suggesting the positive trend will continue.

The MACD line is still negative at -8. However, it has crossed over the signal line and is trending upward into positive territory. The histogram is trending upwards, supporting the current bullish pattern. As the MACD line rises above the EMA line, we may be certain that the MKR market will continue to rise.

Moving averages for 5 and 20 days are 749 and 698, respectively. This uptrend is further backed by the rise of market prices above both moving averages. The Coppock curve, which has just climbed from the negative zone to a value of 8, also implies sustained growth in the MKR market. Overall, the market is expected to stay positive, and major technical signs point to more gains coming up soon.

Featured image from Pixabay and chart from TradingView.com