Why have I been increasing my position in $MKR recently? Is $MKR at 2000 yuan still undervalued?‼️ Those who have been following me know that one of my heaviest positions is $MKR @SkyEcosystem. While others have been playing with memes these past few months, I've been quietly adding to my $MKR position 😂😂 With the stablecoin bill passing and a series of recent positive news in DeFi, the price of $MKR has slowly been catching up. Here are four reasons why I continue to be bullish on $MKR👇🏻 ——————————————— 🔵 Benchmarking Circle's Valuation 💵 I believe everyone has seen the hype around Circle in the US stock market. The stablecoin sector has become a new favorite for institutions because stablecoin companies have very good cash flow. Circle's annual profit is 200M, backed by US Treasury yields, with a simple yet aggressive economic model.~ For the stablecoin sector, $MKR currently has a total issuance of stablecoins (USDS/DAI) amounting to 7B. After deducting various expenses, the projected annual profit is 100M, which is half of Circle's, but the current FDV is less than one-tenth of that 🥲 ———————————————— 🟡 Token Empowerment 🔥 A portion of the treasury's revenue will be used to buy back and burn $MKR. Currently, 5K USD worth of $MKR is burned every 30 minutes, which amounts to 7.2M each month. Additionally, part of it will be used to distribute staking rewards, with the current staking APR for $SKY at 13%. The strong and stable cash flow from US Treasuries allows MakerDAO to continuously print money and provide it to token holders.~ ———————————————— 🔴 MKR<>SKY Conversion 🔄 $MKR holders can convert to $SKY; otherwise, the tokens in hand will be burned. As a first-generation DeFi OG project, MakerDAO has many tokens that are believed to be lost or no longer in circulation, and these will be burned after the conversion period. The current conversion rate is only 50%, and it is expected that 10-15% of the tokens will be burned, which is definitely positive for price performance. ———————————————— 🟢 Spark TGE 🚀 @sparkdotfi is a subsidiary project under $SKY, and after collaborating with @cookiedotfun, it seems to be gaining traction, with many discussions in CT. Currently, the only way to earn rewards is through the USDS pool on @pendle_fi (I will share my views on YT later).~ This project is likely to have its TGE in the next month, which will definitely spark more discussions and help stimulate the price of $SKY. Assuming the stablecoin sector is a major trend for the second half of the year, the ceiling for $MKR is still far from being reached 🫡