MakerDAO to integrate StarkNet, a Layer-2 solution

The DeFi platform MakerDAO intends to integrate the Ethereum Layer-2 solution StarkNet to cut transaction costs and speed up transfers of the DAI stablecoin. The Block reports.

“In terms of cost, this will be roughly a tenfold improvement over Ethereum,” said Louis Boduan, StarkNet coordinator on the project.

Regarding speed, he noted that transaction processing time on the protocol runs at one to two minutes. In 2023 the team plans to reduce this figure to a few seconds.

Integration of StarkNet will begin on April 28 and proceed in four stages. The fully multi-collateral DAI (MCD) stablecoin will be deployed on StarkNet by the end of 2022 or in the beginning of the next year, Boduan said.

MakerDAO already supports two L2 protocols — Arbitrum and Optimism. Both networks use the scaling technology Optimistic Rollups. StarkNet is built on a ZK-Rollups solution.

According to Boduan, as part of its multi-chain strategy MakerDAO aims to eventually integrate ‘the majority of Ethereum layer-2 networks and some key L1 blockchains’.

In February, the circulating supply of DAI surpassed the 10-billion-token mark.