Comparing Data of Two Major DeFi Protocols Maker vs Frax Who Comes Out on Top

Written by: Wajahat Mughal
Translated by: Deep Tide TechFlow
DeFi researcher Wajahat Mughal in this article compares two DeFi and RWA leaders, Maker and Frax Finance, from multiple dimensions, including their core businesses, yields, revenue sources, protocol income situation, governance tokens, and future developments. Which one will be better?
Maker and Frax are the two major leaders in the DeFi space.
Maker provides decentralized stablecoin DAI with overcollateralization, supported by ETH, stablecoins, and RWAs (mostly U.S. treasuries); Frax provides decentralized stablecoin FRAX and a range of financial products built around it.
The collateral for DAI includes ETH, stablecoins, and RWAs – mostly U.S. treasuries.
The collateral for FRAX is about to change. It is currently moving towards 100% CR, no longer supported by FXS. The recently added sFRAX and upcoming FXB (bonds) will provide RWA support.
Yields
The current supply of sDAI is 1.73 billion with a yield of 5%; the current supply of sFRAX is 41 million with a yield of over 6.5%.
It can be seen that DAI has a dominant position in terms of supply, but currently Frax has a leading yield.
Revenue Sources
The yield of sDAI comes from various RWA T Bill yields, as can be seen from custodial institutions.
sFRAX earns IORB rates from overnight interest-bearing accounts held by FinresPBC, which then passes on the earnings to sFRAX.
Maker is currently one of the most profitable protocols in DeFi. With over $80 million in revenue. This is because their supply has been growing.
FRAX has multiple sources of income, including TBills, AMOs, and of course, ETH LSDs – with current annual revenue of $20 million.
MKR and FXS
MKR has a market value of $1.3 billion, used for continuous repurchasing of protocol income.
FXS has a market value of $450 million, earning income from the protocol (all efforts are currently focused on increasing CR to 100%).
Future
Both are excellent protocols, with Maker still being the king of cash, while Frax continues to add innovative products to its ecosystem.
Up next, Maker’s Endgame includes token reshaping, decentralized stablecoin cancellation, subDAO activation, AI integration, and ultimately the Maker Chain; Frax includes Frax bonds, frxETH collateral product updates, and the new L2 Frax Chain on Ethereum.
Personally, I prefer Frax, I like the ecosystem they are building.