Home
Apps
Makerdao

MakerDAO

Decentralized Finance Lending & Borrowing Stablecoins

Overview
Related Apps
FAQs
Reviews

MakerDAO Overview

What is MakerDAO?: MakerDAO operates as a decentralized organization on the Ethereum blockchain, aiming to stabilize the value of its cryptocurrency, DAI, against the US dollar. This aims to minimize price fluctuations often associated with cryptocurrencies. MakerDAO also incorporates a governance structure where holders of its governance token, MKR, can vote on key decisions affecting the protocol, such as collateral types and risk parameters, ensuring the system's stability and responsiveness to market conditions.
Blockchains: Ethereum

Find More on MakerDAO's Website

Related Apps

Aave Protocol
A non-custodial liquidity platform that allows users to lend and borrow assets securely & transparently.
Decentralized Finance ·
MAI Finance
A platform that lets users mint $MAI (stablecoin) against the value of their assets without selling them.
Decentralized Finance ·
Liquity
A protocol that lets users borrow a stablecoin using ETH as security without paying ongoing interest.
Decentralized Finance ·

Frequently asked questions

What is the Maker Protocol and how does it govern DAI?

The Maker Protocol, also known as the Multi-Collateral Dai (MCD) system, governs DAI, a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. It operates on the Ethereum blockchain and allows users to generate DAI by depositing collateral assets into Maker Vaults within the Maker Protocol. This protocol is maintained and regulated by MakerDAO, a decentralized autonomous organization composed of MKR token holders who vote on critical decisions, such as risk management, collateral types, and fees. The system ensures the stability of DAI's value and the security of the protocol by using smart contracts and decentralized governance, allowing for transparent and efficient operation without centralized control.

What is Dai.js and how can I access it?

Dai.js is a JavaScript library for interacting with the Dai stablecoin. It offers documentation, developer guides, and a bug bounty program. To access the github and documentation for Dai.js, click here.

What is the utility of MKR token?

The MKR token is a utility and governance token for the MakerDAO and Maker Protocol, serving multiple critical functions within the ecosystem. Primarily, it grants holders the right to participate in the governance of the Maker Protocol. This includes voting on key decisions such as the addition or removal of collateral types, adjustments to stability fees (interest rates) for different collateralized debt positions (CDPs), and changes to the system's risk parameters.

Additionally, MKR is used as a recapitalization resource of last resort. If the Maker Protocol's system becomes undercollateralized, MKR can be minted and sold in the open market to raise additional collateral, ensuring the stability and solvency of the DAI stablecoin. This mechanism aligns the incentives of MKR holders with the health of the Maker system: effective governance decisions that maintain system stability can increase MKR value, while poor decisions leading to system deficits may result in MKR dilution.

What is the goal of DAI?

The goal of DAI is to provide a stable and decentralized currency that can be used by anyone, anywhere, and anytime. It aims to offer financial freedom without the volatility typically associated with cryptocurrencies. DAI is generated on the user's terms and is governed by a community of MKR token holders. It has been integrated into over 400 apps and services, creating a growing ecosystem.