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Makerdao plans to integrate Ethereum L2 solution Starknet

On Wednesday, Makerdao revealed plans to integrate its Ethereum layer two (L2) scaling solution Starknet. The Starknet protocol is a product developed by the startup Starkware and it provides an L2 scaling solution with zero-knowledge (ZK) based computations using proofs of validity.

Expected to be fully operational by Q3 of this year as defined in the protocol’s roadmap, the integration will seek to enhance the DAI stablecoin’s multi-connectivity and Maker Vaults functionality, by attempting to try to reduce transaction costs and throughput speed on the network.

The move is largely in line with their overarching omnidirectional strategy first witnessed through the launch of the DAI token bridge on both Optimism and Arbitrum One in March and September respectively 2021.

Core Unit Supporter at StarkNet Engineering, Louis Baudoin noted that “as we see unsustainable gas fees driving more activity and users looking to more blockchains, security challenges come along. with bridging will continue to grow,” he added:

Projects must move to Layer-2 to continue serving users, and MakerDAO is working with StarkNet to do exactly that. With this strategy, we are positioned to strengthen Maker’s Protocol’s position as the industry’s leading decentralized lending protocol and also DAI’s position as the most secure and decentralized stablecoin.

According to analytical data from DeFi Llama, MakerDAO is currently ranked 4th in the rankings in terms of total locked value with $14.24 billion, behind only Curve, Lido, and Anchor.