The best DeFi platforms are making radical decisions amidst bear markets. After DYDX, now MakerDAO is taking action. As the number of layer1 and layer2 solutions in the cryptocurrency markets increases, popular smart contracts have started striving to transition to their own main networks. So how will MakerDAO do this?
MakerDAO Announcement
MakerDAO co-founder Rune Christensen made a proposal for the project’s own network. Many popular applications operate on the Ethereum network. However, we have been seeing DeFi platforms striving to transition to their own main networks, especially in the past year. Despite its long-standing ties with Ethereum, Christensen proposed building MakerDAO on a fork of Solana’s codebase instead of EVM.
MakerDAO’s native chain, currently referred to as “NewChain,” is part of the fifth and final stage of the “Endgame” upgrade. It is expected to take about three years to complete the final stage, and we will witness the Maker Protocol operating on a new independent blockchain.
Solana is Better
Christensen argued in his message posted on Twitter yesterday that Solana is a much better alternative for their blockchains. In his proposal on the MakerDAO forum, Christensen described Solana’s codebase as the “most promising” option to explore and believed it should be used as the foundation for NewChain, providing three key reasons:
- Technical quality of Solana’s codebase
- High efficiency
- Optimization
“Solana codebase is well-designed. We are seeing the benefits of designing after the bottlenecks and challenges of blockchains have been well understood, which is quite favorable for NewChain.”
Secondly, Christensen argued that the Solana ecosystem has proven its resilience by surviving the “FTX boom” and other challenges. Finally, Christensen noted that there are already examples of Solana’s codebase being forked and adapted as application chains, indicating that MakerDAO can follow a similar process to develop NewChain.
At the time of writing, the MKR Coin price is trading at $1,186 after dropping to $1,092 yesterday. The decline in BTC price has caused many cryptocurrencies to reach their mid and long-term lows. At this stage, we will experience together the effects of MakerDAO’s steps on the price.
