According to Messari, a cryptocurrency research platform, MakerDAO is creating $27 million USD per year for its active token holders. The research firm says that this is by far the highest rate for any DeFi project in the marketplace, and is 19x forward increase in earnings. The research firm cautioned that although the returns look good for now, the platform has inefficiencies that could make it a less desirable choice in the longer term. The firm cites the buyback and burn system MakerDAO uses as one of the chief causes of concern, but it concedes that so far, MakerDAO has been able to attract investors and create value.

What does it mean? The value of DeFi projects has exploded in 2020, and the sector was even featured on state television in China. As China has taken a harsh stance on decentralized currencies, featuring the performance of cryptocurrencies is noteworthy. While the major tokens have been stable over the course of the year, DeFi tokens, and some other altcoins, led markets higher over the summer. Many of these tokens, like Yearn Finance, have lost ground over the last month. DeFi projects like MakerDAO that pay holders well may do better, however the sector may be due for a deeper correction in prices.