Maker Summary
- Maker is a decentralized finance (DeFi) project built on the Ethereum blockchain.
- It enables the creation of the DAI stablecoin, which is pegged to the US dollar.
- MakerDAO is the decentralized autonomous organization governing the Maker protocol.
- MKR tokens are used for governance and managing the risk parameters of the protocol.
- Maker aims to provide financial stability and transparency through decentralized means.
Maker Definition
Maker is a decentralized finance (DeFi) platform built on the Ethereum blockchain, known primarily for issuing the DAI stablecoin, which is pegged to the US dollar. The protocol is governed by MakerDAO, a decentralized autonomous organization, and utilizes MKR tokens for governance and risk management.
What Is Maker?
Maker is a decentralized finance (DeFi) platform that operates on the Ethereum blockchain.
It is designed to minimize the volatility of its own stablecoin, DAI, by pegging it to the US dollar.
The platform leverages smart contracts to automate and secure financial services without intermediaries.
Who Created Maker?
Maker was created by a team led by Rune Christensen.
Rune Christensen is a Danish entrepreneur who co-founded the MakerDAO project in 2015.
The platform has since evolved with contributions from a global community of developers and stakeholders.
When Was Maker Launched?
The MakerDAO project was founded in 2015.
The first version of the Maker protocol, known as Single-Collateral DAI (SCD), was launched in December 2017.
The Multi-Collateral DAI (MCD) system, which allows multiple types of collateral, was launched in November 2019.
Where Is Maker Used?
Maker is used globally, as it operates on the Ethereum blockchain.
It is accessible to anyone with an internet connection and an Ethereum wallet.
The DAI stablecoin and Maker protocol are utilized in various DeFi applications, exchanges, and wallets.
Why Is Maker Important?
Maker is important because it provides a decentralized alternative to traditional financial systems.
It aims to offer financial stability and transparency, reducing reliance on centralized entities.
The DAI stablecoin enables users to transact and store value without the volatility associated with other cryptocurrencies.
How Does Maker Work?
Maker works by allowing users to lock up collateral in the form of Ethereum or other assets in smart contracts.
In return, they can generate DAI, which is pegged to the US dollar.
The system uses MKR tokens for governance, allowing holders to vote on risk parameters and system upgrades.
If the value of the collateral falls below a certain threshold, it is liquidated to ensure the stability of DAI.
This decentralized governance and collateralization mechanism maintains the stable value of DAI.
