The total locked value on Gnosis Chain, an Ethereum sidechain, has shown impressive growth. It surged from $75 million to a substantial sum of approximately $150 million in the early days of October. This increase coincided with a notable rise in network transactions and associated fees.
Consequently, the significant surge in activity can primarily be attributed to the injection of $50 million in stablecoins into Gnosis Chain, as per available data. These funds are intended to bolster a heightened savings rate. Additionally, this is made possible through MakerDAO’s Spark lending protocol, which currently offers interest rates exceeding 7%.
Furthermore, by connecting to Gnosis Chain, users have increasingly taken to converting their xDAI assets into Savings xDAI, thereby earning interest from all sDAI tokens held through the mainnet bridge.
Gnosis Chain, previously known as xDai Chain, operates alongside Ethereum. It is under the oversight of GnosisDAO. This sidechain is secured by its staking token, Gnosis (GNO).
It functions as a host for various decentralized applications. Notably, it accommodates platforms such as Perpetual Finance, SushiSwap, HoneySwap, Curve Finance, and POAPs.
MakerDAO’s Spark Protocol Expansion onto Gnosis Chain
Additionally, on October 10th, MakerDAO’s Spark Protocol, a decentralized finance lending platform focusing on DAI, launched its multi-chain strategy. It made its debut on Gnosis Chain. This sidechain incorporates a bridged version of DAI, referred to as xDAI, as its native exchange unit.
Notably, this step represents Spark Protocol’s first foray beyond Ethereum and the launch of its multi-chain strategy. As a result, it extends the DAI savings rate to this specific sidechain. Importantly, this signifies the inaugural occurrence of a MakerDAO-affiliated DeFi product debuting on a blockchain outside of Ethereum.
Moreover, after this deployment, contributors of Gnosis Chain reached a consensus. They approved a proposal to transfer a significant portion of DAI tokens located on the bridge with the Ethereum Mainnet into Spark Protocol’s sDAI vault.
This setup enables xDAI holders to maintain access to the Dai Savings Rate yield available on the mainnet. However, prior to this proposal, contributors had noticed a decrease in the amount of DAI being moved to the mainnet to access Spark’s services.
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