MakerDAO continues its multi-channel strategy – Decentralized finance (DeFi) is a logical evolution in the cryptocurrency ecosystem. After being born on Ethereum, this new ecosystem has undergone a paradigm shift by colonizing other blockchains. Since then, most of the historic Ethereum protocols have adopted a strategy to increase their presence in this new multi-chain world.
MakerDAO unveils its expansion strategy on Starknet
MakerDAO is one of the oldest decentralized finance protocols on Ethereum. At the origin of stablecoin DAIit quickly became a cornerstone of this growing ecosystem.
Faced with the congestion problems encountered by Ethereum, MakerDAO has embarked on a strategy of colonizing second-layer solutions.
The goal of the multi-chain strategy is to exploit the speed and cost advantages of second-layer chains, while increasing DAI’s coverage and making it a stablecoin of choice in the multi-chain world.
Thus, after connecting to the L2 of Optimism and Arbitration, MakerDAO has just announced its plans to expand to the Starknet network.
As a reminder, Starknet is a second layer solution developed by the company StarkWare. Under the hood, Starknet takes advantage of the technology of ZK-Rollup to deport part of the transactions out of the Ethereum main chain.
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MakerDAO x Starknet: an integration in 4 phases
Of course, integrating MakerDAO into the Starknet network won’t happen overnight. Thus, during its announcement, MakerDAO explained that the deployment would be done in four major steps.
Phase 1: the bridge
The first phase of the MakerDAO deployment on Starknet will take place on April 28 with the establishment of a bridge connecting the protocol to the second layer network.
This will allow the DAI stablecoin to transit freely between Ethereum and the Starknet networkallowing its integration with protocols emerging on the second layer.
Phase 2: quick withdrawals
In a second step, MakerDAO wishes deploy its quick withdrawal solutionalso called “Fast Withdraw” on the Starknet network.
In practice, this solution is quite similar to theOptimism Dai Bridge, unveiled in March 2021. It allows withdrawals from the Optimism network to Ethereum, bypassing the 7-day withdrawal period inherent in Optimism, as well as most second-layer solutions.
This second phase should see the light of day in the second quarter of 2022.
Phase 3: inter-L2 transfers
The third phase of the MakerDAO deployment on Starknet should introduce the transfers between second layer solutions.
Therefore, during a transfer between second layer networks, the DAIs of network A will be destroyed and then retransmitted on network B.
This third phase should be deployed in the during the third quarter of 2022.
Phase 4: Full deployment of MakerDAO on Starknet
The fourth and final phase of the MakerDAO rollout on Starknet is expected to arrive no later than the first quarter of 2023.
This includes the full deployment of the MakerDAO protocol on Starknet. Who says total deployment, says possibility of issuing DAI directly on Starknet via the deployment of multicollateral DAI.
Therefore, Starknet users will be able to post collateral to take out a DAI loan with the MarkerDAO protocol.
Of course, Starknet isn’t the only second-layer solution going all out. For its part, the network Arbitrum recently deployed a first devnet for its Nitro updateaiming to significantly improve network performance.
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