You will be able to use DAI with less fees on Ethereum thanks to this MakerDAO integration

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MakerDAO, the decentralized autonomous organization (DAO) creator of the stablecoin DAI (DAI), announced the integration of the StarkNet rollup for operations on Ethereum. With the use of this second layer solution in the decentralized finance (DeFi) protocol, it will be possible to issue and send DAI paying lower commissions in the network.

According to an official statement that CriptoNoticias could access and information confirmed by the Twitter account MakerDAO Growth, the integration of StarkNet will take place from April 28, date on which users will be able to start taking advantage of this new alternative. «The association with the rollup ZK (zero knowledge or zero knowledge) of Ethereum will improve the availability of DAI and make the issuance, trading, and settlement of the stablecoin significantly faster,” the statement reads.

StarkNet is a rollup of Ethereum whose main objective is to reduce the fees paid to use the network. To achieve this, these solutions accumulate and “wrap” transactions in the second layer of Ethereum and then move them all together to the main blockchain. The user only pays a commission when transferring funds to or from the rollup.

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You will be able to use DAI with less fees on Ethereum thanks to this MakerDAO integration

This addition by MakerDAO represents “an important milestone” in its multi-chain strategy, said the organization, developer of the largest decentralized finance protocol on Ethereumwith a total value locked (TVL) of USD 14.4 billion, according to defillama.com.

You will be able to use DAI with less fees on Ethereum thanks to this MakerDAO integration
Among the DeFi exclusive to Ethereum, MakerDAO is the one with the highest TVL. Source: defillama.com

Before, this DAO had also added Arbitrum and Optimism rollups, both of type optimistic. These differ from ZK rollups in the cryptographic method they use to confirm the validity of the transactions they include, as explained in detail in this CriptoNoticias post.

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All of this, in turn, makes up a larger tactic of making the DAI stablecoin and Maker Vaults—where collateral in bitcoin (BTC) and other cryptocurrencies are deposited to support the issuance of DAI—available in as many quantities as possible. of rollups and parallel chains possible.

Ethereum gas fees drive users to various blockchains (…) Projects need to move to the second layers to be useful to users, which is why MakerDAO partners with StarkNet.

Louis Baudoin, a member of the StarkNet Core Unit at MakerDAO.

How much will it cost to use DAI with rollups?

Currently, to send ERC-20 tokens (such as DAI) on the Ethereum mainnet, a commission of approximately USD 17 must be paiddepending on the site l2fees.com. This varies constantly and depends on factors such as network congestion and how urgently you want to confirm the transaction.

However, the issue changes when using a rollup. According to the same source, the fees for the exchange of tokens using Optimism and Arbitrum are reduced to $0.88 and $1.16, respectively. This represents a decrease of more than 90%. Although there are no statistics about the commissions when operating with Starknet, being a rollup similar to these two, the amounts should not deviate from these parameters.

You will be able to use DAI with less fees on Ethereum thanks to this MakerDAO integration
Fees on Ethereum go down when using rollups instead of the mainnet. Source: l2fees.com

Beyond commissions, another advantage of rollups is that they allow transactions to be carried out faster than on the main network. In the case of DAI, both the use of Starknet and Maker Wormhole (MakerDAO’s bridge to move funds between Ethereum and other blockchains) will allow “easily transferring DAI” between various second layer solutions. It will also be possible to operate faster between these second layers and the main network.according to the organization.

Finally, following what the DAO communicates, waiting times for DAI withdrawals will be reduced from several hours “or even weeks for some rollups” to almost instantaneous transactions. In this way, users will be able to settle their funds in DAI in a much more agile way.

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