MakerDAO - the protocol of a stable DAI coin, that supports a linkage 1 DAI-$1. The uniqueness of the project - each DAI is supported by Ether, not a third party. Various groups of specialists have participated in its design, including developers from the Maker foundation, external partners and other individuals and entities.
Contents:
- MakerDAO protocol description
- Why do you need DAI?
- What is CDP and what role does it play in MakerDAO?
- Advantages of the MakerDAO blockchain platform
MakerDAO protocol description
The MakerDAO project was launched in 2015. Developers from around the world worked on the first code snippets, architecture and documentation. In December 2017, the first official regulatory document, MakerDAO, was published.
The document also presented a plan for improving the system and supporting other types of maintenance besides ETH.
Why do you need DAI?
Perhaps, DAI - the most successful project, built on Ethereum, at the moment. Currently, it owns 2% of all Ether within its smart contracts and has issued over $77 million in its system. In addition, DAI is still growing at MakerDAO. Their own token allows currency holders to influence certain aspects of the protocol, such as:
- stability fee;
- maintenance ratio;
- emergency shutdown.
Now, any Ethereum-based assets, approved by MKR token holders, can be used as maintenance. Maker hopes to use Dai to give everyone the opportunity to hold funds that will support its purchasing power. Because it’s stable against the dollar. With Maker, anyone can use their assets to create Dai. After generation, you can use Dai just like any other cryptocurrency.
What is CDP and what role does it play in MakerDAO?
CDP holds the collateral assets that the user deposits and allows him to generate Dai. Having a debt means that your assets are locked in the CDP, until the owner pays the same amount of currency. An active CDP always has a higher collateral value than a debt value. This process begins with the user, sending the transaction to Maker, which will create the CDP, and then the transaction to finance it. After the CDP is "maintenanced", the user can conduct the transaction.
Advantages of the MakerDAO blockchain platform
Why you should choose this protocol to work:
| The first fair currency in the world | Dai - a stable decentralized currency without discrimination. The benefits of digital money are available to any company or individual. |
| Financial freedom | Manage a currency with a stable price. Instantly receive Dai on your terms. |
| Fast and affordable | Buy Dai in two clicks and start earning interest income at the rate, set by the Maker community. |
All circulational Dai currencies have an overcollateralization. This means that the value of collateral exceeds the amount of debt in Dai. All transactions with Dai are publicly available on the Ethereum blockchain. Combined with all other open source financial projects, this experiment will be exciting. In conclusion, Maker - the third most successful experiment after Bitcoin and Ethereum. The team has remained loyal to the values of crypto protection, interacts with the community and has made a significant contribution.