# Composable Recap 13

By [opensky](https://paragraph.com/@opensky) · 2023-12-22

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Composable years…

13 is considered a lucky number in many cultures, in others it’s a number to avoid at great cost. There are hotels in the United States where the floor numbers jump from 12 to 14, because too many customers would request room changes when assigned to a room number starting with the number that is the result of adding 1 to 12.

The year 2023 is coming to a close, and we want to give a top level overview of our particular, and individual, perspective on what happened in MakerDAO.

As the current crypto market is re-entering a phase that is more froth than substance, we see a certain need to start with token prices.

Here is the chart of Maker’s arguably most important token, year over year.

![One DAI is always one DAI](https://storage.googleapis.com/papyrus_images/7dd706fb90d0efa0afa3bdc79cf8227004a40ae41b8535b697c5dbea2c1348bf.png)

One DAI is always one DAI

Which token did you expect? 😇  
  
At first glance, this chart might be dull, but looking closer, the whole year is visible.  
Silicon Valley Bank’s almost-failure, dragging down USDC to $0.86 and with that, thanks to an uncapped PSM, DAI. This event, more than any discussion prior, made it clear that Maker had to move up the food chain in it’s dependencies.

[https://forum.makerdao.com/t/emergency-proposal-risk-and-governance-parameter-changes-11-march-2023/20125](https://forum.makerdao.com/t/emergency-proposal-risk-and-governance-parameter-changes-11-march-2023/20125)

Thanks to Clydesdale and Andromeda, Maker has two powerful structures that can interact with the US treasuries markets and buy treasury bills directly. Two charts tell the story.

![Monetalis Clydesdale collateral](https://storage.googleapis.com/papyrus_images/57ef14335d3fab0bf6c571fcbe79c743b4288cc06daebc367c74e29fd4a72776.png)

Monetalis Clydesdale collateral

And Andromeda follows suit…

![BlockTower Andromeda collateral](https://storage.googleapis.com/papyrus_images/26770e4386f3f3efa11a178597719c184409f3b65e76d1f16c9ba21d5d03b336.png)

BlockTower Andromeda collateral

Now MakerDAO is dependant on the quality of US-Treasury bills, but this is the same dependency the US-Dollar has. In terms of peg-stability, this is as good as it gets.

Further down the DAI chart above, we see a ever so slight downward trend from DAI being worth _slightly_ more than USD 1.000 to being worth _slightly_ less. This makes perfect sendes, if we recall Maker’s history and the black Friday events of old.

![Black Friday and demand >> supply](https://storage.googleapis.com/papyrus_images/fbc4f4c5e6df577eac2ff79a1730c2ef52f5a3932fdcf3f82cf1ca61d80ede59.png)

Black Friday and demand >> supply

The PSMs were introduced to counteract this possibility. It seems that decentralised collateral has the tendency to not scale quickly enough with demand. And now DAI price represents a very small risk premium to US-treasuries.

Now, let’s look at the other token, right 😎

![MKR price, year over year](https://storage.googleapis.com/papyrus_images/ff63d34145f86b3e87d741407f007ab1c1a21d615eb5b5cbd3e6301064b94c9a.png)

MKR price, year over year

It seems investors across the spectrum are _very_ happy with how Maker has managed it’s expenses, dependencies and scale this year. At the same time MKR liquidity has increased thanks to DAI/MKR Uniswap pools.

We are certain that the MKR buyback resuming has played a not insignificant role.

![MKR buyback - smarter than ever](https://storage.googleapis.com/papyrus_images/92a2edd9eba3d2db498483b4f601cc12cc2062516a77b48a96f9f8cdb1ba960f.png)

MKR buyback - smarter than ever

On the organizational front, the Endgame plan has progressed. AVCs have established a good rhythm and are developing guidelines for facilitators. The Atlas is being reworked, and Spark has exceeded the wildest expectations in market acceptance.

2023 was a very good year for MakerDAO.

Let’s make 2024 even better.

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**DAI supply update**

DAI supply and stablecoin collateral have not changed much. We would like to suggest that this is a sign of success. The current market makes investing into digital assets attractive, but we are not at the peaks of leverage-demand yet, or any close to what we have seen in past bull-markets. Maybe investors do learn, after all.

![DAI supply on a sideways motion.](https://storage.googleapis.com/papyrus_images/c2e0ec2709dde3c2d769c284716a29cf64ceaed10a6368a262fbf1ca44922c66.png)

DAI supply on a sideways motion.

**Voting update**

Since MakerDAO entered the yearly governance pause, there are no new votes.

The year is slowly coming to a close, AVCs, like KISS AVC are using the time to tighten their scope proposals and this newsletter will have one more edition this year.

Thank you to all the readers! We look forward to serve you next year, too.

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**Ad section**

If you have MKR and want to make a difference, join KISS AVC. The Keep it Simple, Stupid, AVC focused on effective governance. We meet every Thursday and don’t bite. Come by, say hi.

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*Originally published on [opensky](https://paragraph.com/@opensky/composable-recap-13)*