DeFi Giant MakerDAO Speeds Up DAI Transactions and Withdrawals, Expands to Arbitrum, Optimism

MakerDAO’s new technology, Maker Teleport, enables users of the DAI stablecoin to circumvent Ethereum’s congested base layer.

AccessTimeIconNov 16, 2022 at 4:35 p.m. UTC
Updated Nov 17, 2022 at 8:54 p.m. UTC

CORRECTION (Nov. 17, 20:54 UTC): Original article incorrectly stated that MakerDAO was expanding to Osmosis. Corrected to Optimism.

Decentralized-finance (DeFi) protocol MakerDAO said it can now handle “near-instant” transactions and faster withdrawals across the Ethereum blockchain and layer 2 networks for its $6 billion stablecoin, DAI.

The new infrastructure called Maker Teleport enables users to send and withdraw DAI by circumventing the Ethereum blockchain’s base layer, according to a press release Wednesday. Maker Teleport is now available on Ethereum scaling networks Arbitrum and Optimism as part of MakerDAO’s multi-chain strategy to expand DAI to more blockchain networks, the organization said.

The new technology could prove crucial for DAI users because the Ethereum network is prone to congestion and high transaction costs (gas fees) during times of high traffic. Maker Teleport reduces fees and settlement time for transferring DAI from between Ethereum and layer 2 networks, which before could take anywhere from 30 minutes to a few days.

“While the DeFi space has matured significantly over the past few years, many processes remain inefficient, complex or costly, dampening the user experience,” Sam MacPherson, a protocol engineer at MakerDAO, said in the press release.

MakerDAO is one of the biggest players in DeFi, and it also issues the largest decentralized stablecoin, DAI. Recently, it has invested a part of its $8 billion reserve into traditional assets such as U.S. Treasurys and corporate bonds, and decided to break up its organization structure into smaller units in a controversial vote.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.