Maker (MKR) Price to Burn Analysis: Still "relatively expensive" to peer group as investors continue to pay a massive premium for a credit facility

With the help of explicit "earnings" data within the Maker system — visible via smart contracts on the Ethereum blockchain and courtesy of data from Marc-André Dumas — we re-calculated relative valuation metrics for Maker such as Price to Burn (Interest Earnings) and Earnings Yield (Burn Yield) through the third quarter of 2019. Our findings show that although Maker has achieved a fairly stable peg with its stablecoin DAI (daily price standard deviation of $.015 since Jan 2018), the system hasn't been able to capture and distribute interest payments (revenue) to its MKR stakeholders adequate to its current total market value, relative to a peer group (i.e. investors are paying a massive premium in terms of price to burn, and for a credit facility exposed to credit risks no less!).

Furthermore, we compare Maker's (MKR) Price-to-Burn (P/B) to Binance and other exchange tokens to highlight just how large of a premium investors are currently paying for Maker vs. exchange tokens in terms of P/B, and a pseudo price-to-earnings (P/E).