Maker
What is Maker?
Maker (MKR) is a utility and governance token based on Ethereum that operates on the Maker smart contract platform. Through “a dynamic system of Collateralized Debt Positions (CDPs), autonomous feedback mechanisms, and appropriately rewarded external actors,” MKR is utilized to stabilize another cryptocurrency called Dai. Holders of Maker vote on platform changes to keep Dai pegged to the value of one USD and the system solvent. If the Dai fund runs out of money, fresh MKR tokens are printed and sold to keep the Dai system running.
Understanding Maker
Anyone can use the Maker platform to create Dai by leveraging Ethereum-based assets and letting the system retain them until the debt is paid off in an equal number of Dai. Maker also serves as leverage and liquidity for the ERC20 exchange OasisDEX, which offers Maker and Dai as well as other Ethereum-based tokens.
Maker is significant because it produces the decentralized stablecoin DAI, which is widely utilized throughout the DeFi ecosystem.
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In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
More articlesDamir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
