MakerDAO speeds up DAI withdrawals and transactions, expands to Arbitrum, Optimism

Key points:

• Maker Teleport, the new technology of MakerDAO, will allow users to send and withdraw DAI by bypassing the base layer of the Ethereum blockchain.
• It reduces the fees and turnaround time for transferring DAI between Ethereum and layer 2 networks.
• MakerDAO says it can now process "near-instant" transactions and faster withdrawals.
• Maker Teleport is now available on Ethereum scaling networks Arbitrum and Optimism.

Decentralized finance (DeFi) protocol MakerDAO says it can now process "near-instant" transactions and faster withdrawals on the Ethereum blockchain and layer-2 networks for its $6 billion stablecoin DAI.

Dubbed Maker Teleport, the new infrastructure will allow users to send and withdraw DAI by bypassing the base layer of the Ethereum blockchain, according to a press release on Wednesday. As part of MakerDAO's multi-chain strategy to expand DAI to more blockchain networks, Maker Teleport is now available on Ethereum scaling networks Arbitrum and Optimism, the group said.

This new technology could be crucial for DAI users, as the Ethereum network is prone to congestion and high transaction costs (gas fees) during periods of high traffic. Maker Teleport reduces the fees and turnaround time for transferring DAI between Ethereum and layer 2 networks, which previously could take anywhere from 30 minutes to several days.

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

MakerDAO is one of the largest players in DeFi and also issues the largest decentralized stablecoin, DAI. It recently invested some of its $8 billion in reserves in traditional assets such as U.S. Treasuries and corporate bonds and decided in a contentious vote to break down its organizational structure into smaller units.