Maker

One of the biggest dapps on the Ethereum Blockchain is the Maker Protocol that was designed by a group of developers and is governed by MakerDAO.

The MakerDAO is a decentralized autonomous organization that is made entirely of MKR holders from across the world. These MKR holders can stake their tokens in order to vote on the proposed changes to the protocol as well as to ensure the efficiency, stability, and transparency of DAI. For the vast differences, holding MKR is similar to owning stocks in a traditional company in the sense that the shareholders have a say in determining how the company operates. The market ecosystem is one of the first DeFi projects to achieve major successes as a testament to the effectiveness of decentralized governance.

However, let’s get back to the DAI First. What is it? Well, Dai is a decentralized, collateralized, and unbiased soft-pegged stablecoin to the US dollar. It does sound complicated we know but in essence, it means that it’s crypto whose price follows the value of the dollar without having to be run by e central authority. While blockchain technology presents more opportunities for the finance industry, most are reluctant to use Bitcoin as a medium of exchange because of its volatile nature and this is why Dai was created.

Dai was created to meet the demand for a stable digital currency that will enable users to realize the full potential of blockcahin technology. Dai is unbiased because it isn’t managed by a private company like another stablecoin’s like Tether’s USDT and it is collateralized because new DAI can be minted by a Maker Protocol user that already deposited an appropriate amount of other cryptocurrencies in a smart contract to back the new Dai that is getting minted. Dai holders can also use the protocol to earn interest on their stablecoins with the amount being determined by the savings rate.

Before we delve some more into this amazing protocol in the introduction, let’s make a quick break and see what are the lessons that we are going to take to learn more and understand this protocol better.

1. What Is Maker?
2. How Does Maker Work?
3. Are Maker Smart Contracts The Same With Ethereum Smart Contracts?
4. Founders of Maker
5. Dai Module
6. Core Module
7. Oracle Module
8. DAI Use Cases
9. MKR Token Wallets
10. MKR Token Exchanges
11. What Does Overcollarateralization mean?
12. Maker Value And Coins In Circulation
13. Key Actors
14. Final Thoughts