DEFI

MakerDAO's "8%" DAI savings rate is too good to pass up! Sun Yuchen collateralizes stETH and deposits over a hundred million dollars worth of DAI.

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MakerDAO's lending protocol Spark Protocol recently raised the savings interest rate for DAI to 8%, attracting a large number of users to collateralize assets on the platform to borrow DAI and deposit it in exchange for high returns. The high interest rate also attracted Tron founder Justin Sun to deposit over tens of millions of funds, accounting for more than 10% of the total deposits.

Pre-reading: Dai savings rate of 8% goes live, US users and VPNs prohibited

Justin Sun Deposits Over $100 Million DAI in Spark

Searching on Debank for Justin Sun's account reveals that he has deposited around 178,500 stETH into Spark, borrowed approximately 136 million DAI at a 3.19% interest rate, and then reinvested all of it in the protocol to earn an 8% interest rate.

Due to the significantly higher savings rate of DAI compared to the borrowing rate, Justin Sun is able to earn around $17,900 in daily profits.

Additionally, the current DAI deposit on Spark is around $1.1 billion, with Justin Sun holding approximately 12.3% of the total amount.

How Long Can the 8% Savings Rate Last?

Since MakerDAO officially entered the world of RWA in October last year, more and more assets have been used to purchase U.S. Treasury bonds. According to data from Dune Analytics, MakerDAO's RWA assets amount to around $2.35 billion.

If we assume that all these assets are in 5% interest U.S. Treasury bonds, it would generate $117.5 million in income for MakerDAO annually. This money can be used to cover the high DAI deposit rates on Spark until the total deposit reaches around $1.468 billion.

While the above assumption is simplistic and the protocol has other income and expenditure components, it is clear that as the DAI deposit amount continues to increase, Spark's savings rate will inevitably decrease.

Justin Sun Increases Investment! Total Investment Exceeds $175 Million as of 8/11 Update

After depositing 136 million DAI yesterday, blockchain data analyst Wu Jian discovered that Justin Sun has further increased his investment, using another address to collateralize around 40,000 stETH and depositing around 30 million DAI borrowed into Spark.

Currently, Justin Sun has collateralized approximately 231,000 stETH and deposited around 176 million DAI in Spark. Based on the current 1.18 billion DAI deposit on Spark, Justin Sun holds a share of approximately 15%.