Maker

MakerDAO Product Introduction

• Product Overview: MakerDAO is a decentralized finance (DeFi) protocol built on the Ethereum blockchain, designed to provide an unbiased global financial system through its core product, the stablecoin Dai (DAI). Dai is the world’s first decentralized stablecoin, soft-pegged to the US dollar to maintain price stability.
• Core Functionality: MakerDAO enables users to generate Dai by depositing approved collateral (such as Ether ETH or other crypto assets) as a form of overcollateralized loan. Users can manage collateral and loans via smart contracts, with Dai issuance and destruction automatically adjusted through these contracts to maintain stability.
• Governance Mechanism: MakerDAO is governed by holders of its governance token, MKR. MKR holders can vote on critical platform parameters, such as stability fees (interest rates for generating Dai), collateral types, and other system rules, ensuring a community-driven decentralized governance model.
• Decentralization and Transparency: Operating on the Ethereum blockchain, MakerDAO ensures full transparency in its operations. Users can track Dai issuance and circulation at any time, reducing the risk of manipulation and enhancing trust.
• Use Cases: As a stablecoin, Dai can be used for payments, value storage, cross-border transfers, and other financial activities. It is particularly useful in volatile cryptocurrency markets as a stable store of value.
• Innovation and Impact: MakerDAO is widely regarded as a pioneering project in the DeFi space. Its decentralized approach to creating a stablecoin has introduced new levels of stability and credibility to the cryptocurrency market, significantly influencing the development of decentralized finance.