Stable and Regular Income from Crypto Projects : Maker
# Price History of the Project #
# What is the USP of this project? #
This project has two tokens - Make and DAI. Maker and DAI are two sides of the same coin. Crypto market is extremely volatile. And volatility scares long term investors as well as traders.
Maker project's DAI provides safe place to convert and store your crypto value through CDPs without moving in and out of crypto to fiat currency. DAI is pegged to USD and its value is maintained by crypto assets through over-collateralization.
The platform charges a DAI stabilization fee from those who convert their crypto assets into CDPs and receive DAIs. This is equivalent to charging interest rate to provide collateralized loans in conventional banking system.
So far so good.
The stabilization fee is to be paid by borrowers in the form of MAKER coin. Therefore, borrowers have to purchase makers from market and payback their stabilization fee (interest) if they wish to unlock their collateralized crypto assets. This increases demand for maker tokens on regular basis. And more the people take loan then more the demand for maker tokens.
So how the demand for loans has increased over time for DAI - below picture shows that:
And the below chart shows the evolution of stabilization fee:
It is obvious that the demand for DAI's is continuously increasing despite increase in stabilization fee.
# Financial Ratio's #
DAI Supply 1 year ago = 18829655
DAI Supply Now = 88409981
DAI Supply Annual Growth = 369%
Expected DAI Supply Next Year = 326232830
Stabilization Fee = 7.5%
Next Year Expected Revenue = 24467462 USD
Number of Maker Tokens = 1000000
EPS = 24.46 USD
Current Market Price for Maker = 708 USD
Effective 1 Year Forward PE = 28.94
For a revenue growth of 369% buying an asset with one year forward PE of 28.94 is reasonably good investment.
# Risks #
The key risk here is that the whole project is centered around ethereum blockchain. So any negative thing if happened to ethereum blockchain then this platform too will collapse.
The second risk is - many more of similar type projects have come up and are coming up so growth rate may not be as good as it has been in last year.