Ethereum MakerDAO Expands to StarkNet to Reduce DAI Transaction Costs

Expansion to StarkNet will turn DAI into a decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. multi-chain stablecoin and make it 100 times cheaper to use than Etheruem.

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MakerDAO , el protocolo pionero de préstamos con criptomonedas y stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. based on Ethereum a decentralized open-source blockchain with smart contracts functionality. is addressing the costs and congestion of its native ecosystem with an expansion to a second-layer scalability solution, StarkNet .

Best known for creating DAI, the second largest decentralized stable coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. on the market, MakerDAO unveiled expansion plans Wednesday. According to an expansion timeline picked up byCrypto Briefing,se espera que la integración entre en pleno funcionamiento para el tercer trimestre de este año, o a más tardar para inicios de 2023.

The integration process will consist of four phases, starting with a single bridge between the two networks scheduled for April 28. The second phase, planned for the second quarter of 2022, will enable rapid recalls from Layer 2 to Layer 1, followed by an upgrade that includes a feature that will enable instantaneous movement of DAI between different Layer 2 networks. Finally, in late 2022 or early 2023, the fourth phase will feature a full-scale integration of MakerDAO en StarkNet .

Up to 200 times cheaper than Ethereum

As such, integration with StarkNet will seek to enhance the multi-chain capabilities of DAI, and the associated function of Maker Vaults The company is working to reduce the cost of transactions and the speed of performance on the network. It is estimated that upon completion of the expansion to StarkNet The cost of the mint and the cost of borrowing for DAI is a hundred times cheaper than in Ethereum .

Created by Israeli startup StarkWare , StarkNet is a Layer 2 scaling solution from Ethereum that takes advantage of Zero-Knowledge Rollups to help climb Ethereum .

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The integration of MakerDAO with StarkNet means that users will be able to connect DAI from the main network a network refers to all nodes in the operation of a blockchain at any given moment in time. of Ethereum to the overlay network and transact in the stable currency currency is a medium of exchange that defines value. from there with faster settlement times and cheaper costs. According to StarkWare your scaling solution should offer rates that are 100 to 200 times less expensive than Ethereum .

As you remember Crypto Briefing, Vitalik Buterin, founder of Ethereum has previously stated that the rollups como StarkNet could help the network achieve up to 100,000 transactions per second, which would be a significant increase from the current average of around 15.

MakerDAO wants to be multichain

The expansion will also turn DAI into a stablecoin decentralized fully multi-chain. Pegged to the U.S. dollar, DAI is currently the second largest decentralized stablecoin after USDT, from Earth . According to CoinMarketCap Its market an area or arena, online or offline, in which commercial dealings are conducted. capitalization is USD $9 billion.

The latest move by MakerDAO is part of the protocol’s broader strategy to expand into several chains that began last year, following the he launching of DAI token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. bridges a blockchain bridge allows the seamless transfer of data or tokens between two different blockchain projects. in both the Optimism as in Arbitrum One .

The fifth largest decentralized finance protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. (DeFi) in terms of LTV, plans to increase its product offering and gradually move towards a multi-chain future by connecting with other platforms. According to data from DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. Flame , MakerDAO has a total locked-in value (TVL) of USD $14.24 billion, behind only Curve, Lido, Balancer y Anchor.