Develop A DeFi Lending Platform Like MakerDAO | MakerDAO Clone

With the rise in popularity of decentralized ecosystems, entrepreneurs existing globally are keen on developing DeFi platforms or dApps for their businesses. By 2025, the DeFi market is anticipated to reach 53.56 million users.

Decentralized finance is witnessing a new wave of applications for creating an open and inclusive financial system. Amidst all these DeFi protocols and projects, Sky Protocol, formerly known as makerDAO, stands out as an innovator in decentralized lending, stablecoins, and digital asset management. Interacting with such protocols and building decentralized applications on the blockchain will help you develop robust and user-friendly DeFi solutions.

Before delving deep, let's first understand the evolution of this DeFi protocol.

Unfolding The Transition

MakerDAO is the former name of Sky Protocol, which marked the most transformation in the DeFi landscape. The step was taken to introduce robust frameworks, user-friendliness, and more advanced features. The rebranding of the maker to Sky protocol symbolizes the next evolution of DeFi as it streamlines the offering and, therefore, makes it easily understandable for the public.

Not only that, it has made some magnificent changes in the core components, such as the DAI stablecoin being renamed to USDS and fixing the exchange at the predetermined rate. The native governance token has also been upgraded from MKR to SKY, ensuring that quality features are maintained within the Sky ecosystem.

A Brief Understanding Of MakerDAO & Sky Protocol

MakerDAO is a decentralized financial system allowing users to borrow cryptocurrencies without third parties. It issues a stablecoin "DAI" and a governance token "MKR." MakerDAO enables users to lock up collateral and mint DAI by borrowing against it. The system is governed by MKR token holders, who participate in key decisions, such as adjustments to the collateral types, risk parameters, and stability fees.

Sky protocol is one of the largest dApps on the ethereum blockchain network, managed by the individuals holding its governance token MKR. It fundamentally focuses on decentralized cloud infrastructure, enabling developers to perform deployment and interaction seamlessly. Its central currency is the USDS stable coin with governance token "SKY" and provides unique features like trading, reward accumulation, savings, and complete control over their assets.

MakerDAO Vs Sky Protocol

How Does a MakerDAO Clone Work?

The token holders have the ultimate power to perform voting on essential decisions via two-point methods. One is proposal polling, and the other is executive voting. Initially, proposal polling takes place that enables MKR holders to measure the community's sentiment on any proposal before making any alterations to the protocol.

When the executive vote is passed, the MakeDAO protocol code is notified to reflect the winning proposal. Moreover, the non-MKR holders are able to take part in voting during the proposal discussion. The thing is that the makerDAO accepts proposals from anyone, but the MKR holders can only participate in the voting process.

Features Of MakerDAO Like DeFi Lending Platform Development

Explore the spectacular set of attributes that facilitates amazing contributions in uplifting the functioning and working of the DeFi apps. Below, we have mentioned some of them as under;

• Flexible Collateral Options

MakerDAO allows users to utilize different Ethereum-based assets in the form of collaterals. This signifies flexibility and provides room for various risk levels and investment opportunities. The MakerDAO protocol is adapted to different market conditions via community voting, ensuring relevance and efficiency are not compromised at any cost.

• DEFI Protocols Integration

The seamless integration of the DefI protocols allows the users to gain exclusive access to a wider range of financial services. With this, the effectiveness of DAI is improved to the next level, providing opportunities within the DeFi ecosystem.

• Stable Value Management

The objective of the MakerDAO is to keep the DAI value closer to $1 USD, which helps users to maintain stability and avoid fluctuations. This makes sure that consistency and reliability are maintained for every digital transaction.

• Robust Security Measures

One of the MakerDAO's ultimate characteristics is the use of ultra-modern measures and non-stop reviews that ensure that the assets are secure and, therefore, protect against potential threats.

• Decentralized Governance

This attribute helps restrict the single entity from dominating the protocol and mitigate risk manipulation. Every decision is taken collectively within the community so that transparency and accountability are maintained.

Steps To Build Develop A DeFi Lending Platform Like MakerDAO

MakerDAO’s and Sky Protocol’s decentralized infrastructure opens up exciting possibilities for developers in the DeFi space. Here, we have illustrated a simplified process to get started with building a DeFi DApp using these protocols;

Planning

Before initiating the actual development of the decentralized application, the core functionalities need to be defined. Analyzing the requirements and understanding the project needs to help better comprehend which protocols need to be integrated.

Implement User Interfaces

Develop a user-friendly interface with the MakerDAO contracts (for DAI minting) and the Sky Protocol infrastructure. All the visual elements, like building interactive components, create maximum user engagement.

Integrate MakerDAO's Protocols

Leverage on MakerDAO's smart contracts to grant lending and borrowing of DAI. This means you will initiate by implementing the integration of Maker's vaults and the liquidation mechanisms; this is, therefore, facilitating users to deposit their collateral to generate DAI.

Harness Sky Protocols

Use Sky Protocol as a partner with DeFi Saver, marking it an important step towards DeFi management while integrating the latest features and creating more opportunities for users. Ensure your application remains secure and decentralized, offering users a trustless experience.

Smart Contract Development

Build custom smart contracts to facilitate DeFi functions like yield farming, staking, or liquidity mining, all hosted within the Sky Protocol ecosystem for scalability and decentralization.

Crypto Wallet Integration

Ensure that users can connect their wallets like trust wallet, Exodus, MetaMask, etc, and easily participate in lending/borrowing while utilizing decentralized storage for any dApp data.

Test & Deploy, 

Once the dApp is built, deploy it to a testnet for user testing. After ensuring everything works as expected, it is deployed to the Ethereum mainnet or another blockchain platform, such as Polkadot orDinance Smart Chain, which is compatible with MakerDAO and Sky protocol.

Whatever your requirements are, Suffescom is ready to help you. Whether you want to build a dApp using either of the protocols, our developers have the expertise and in-depth knowledge about the advanced tech stacks that will make your development journey smooth.

Tech Stacks Required To Develop MakerDAO Clone Platform

Discover the fantastic technological stacks that enhance performance, security, streamlined processes, etc. Have a look below;

How Much Does It Cost To Develop DeFi Apps On MakerDAO?

The typical cost ranges from $10000-$50000, that is subject to change depending upon certain parameters. It includes everything from market research to detailed analysis and creating roadmaps. If we solely consider the development aspect, then wireframe creation, UI design, and prototypes will act as crucial aspects of the building's front-end elements.

Further, as we know, a decentralized platform, including blockchain, crypto wallets, and smart contracts, is a must, which can't be ignored. These are cutting-edge technologies, and integrating them into the platform requires time and precision, which affects the budget.

Coming to the backend aspect, which is the backbone of any platform, requires API integration, cloud infrastructure, data storage, building robust architecture, and feature integration via the latest programming languages and top frameworks. This for sure adds to the overall development cost.

Security auditing is essential as it removes bugs and errors and optimizes the smart contract code to execute the functions appropriately. So, to maintain quality assurance, the testers must be paid well.

Last but not least, marketing also charges a specified amount, making a significant part of the budget. Depending on the feedback received and the market situation, specific updates, and enhancements will be required when the platform is launched. Moreover, to promote the platform, various marketing techniques need to be adopted so that the platform works well and gains maximum attention.

Contact our team, share your ideas, discuss your requirements, and get an exact quote on the project.

Revenue Model Of MakerDAO Clone

MakerDAO Clone has a distinctive model that involves unique mechanisms that are responsible for generating high returns on investment and amplified profits.

Stability Fees

The businesses can earn revenue when the users borrow Dai they need to pay a substantial amount of fee that helps in risk management.

Liquidation Premiums

If the collateral is sold at a high price, then the excessive value contributes to the platform revenue, known as liquidation premiums.

Governance Fees

Giving the power to the MKR token holders to take important decisions does require fees that form a part of the revenue generation.

Choose Suffescom As Your Development Partner!

As a trustworthy DAO development company, we have helped businesses of all sizes achieve their dream goals and be among the race of the top tech giants. With more than 6 years of experience in emerging technologies, we have successfully delivered 50+ blockchain projects. Our developers have expertise in different blockchain platforms like Ethereum, Solana, polygon, and many more.

Adding another feather to the cap, we offer 24x7 Support services to the clients, addressing their issues regarding the project and offering them top consultation services. Our blockchain development team adopts agile methodologies, which embrace a flexible approach, motivating teams to build platforms quickly without compromising quality and maintaining project timely delivery.

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