What is Maker?

Maker (MKR) is a decentralized autonomous organization (DAO) on the Ethereum blockchain, responsible for issuing and managing the DAI stablecoin. Founded in 2014 by Rune Christensen, Maker aims to provide a decentralized financial system with stability and transparency, independent of traditional banks. The native token, MKR, is used for governance and maintaining the stability of DAI.

How is Maker useful?

Maker allows users to generate DAI by locking collateral in smart contracts, offering decentralized access to liquidity without intermediaries. This enhances financial inclusion and supports decentralized finance (DeFi) applications. MKR holders participate in governance, influencing risk management, system upgrades, and collateral policies to ensure protocol stability and efficiency.

How does Maker work?

The Maker Protocol runs on Ethereum and allows users to create DAI by depositing collateral assets into Maker Vaults. DAI remains stable through an automated system that adjusts supply and demand mechanisms. MKR tokens are used for governance, with holders voting on critical protocol decisions. In the event of system deficits, MKR can be minted and sold to cover outstanding debt, aligning its value with the protocol’s stability.

Maker milestones

• Single-Collateral DAI (SAI) Launch: Introduced in 2017, allowing users to generate DAI using ETH as collateral.

• Multi-Collateral DAI (MCD) Upgrade: Launched in 2019, enabling multiple collateral types and introducing the DAI Savings Rate (DSR).

• Real-World Asset Integration: In 2020, MakerDAO began accepting traditional assets as collateral, bridging DeFi with traditional finance.

• Endgame Plan Proposal: In 2023, Maker proposed restructuring into specialized MetaDAOs, introducing new tokens, and improving governance.

Maker’s decentralized governance and financial services continue to shape the DeFi landscape, providing a stable and transparent alternative to traditional finance.

Buy Maker (MKR) on BITmarkets.