10.4 C
Sunday, April 14, 2024

Maker Dao Defi Coin Review: A Better, Smarter Currency

- Advertisement -
binance 728x90 banner

About Maker Dao Defi Coin

The Maker Foundation is tasked with bootstrapping Maker Dao Defi Coin to fuel growth and drive the organization toward complete decentralization. While the Foundation provided development support through the launch of Multi-Collateral Dai (MCD), it is currently spearheading efforts to decentralize development. MakerDAO governs the Maker Protocol by deciding on key parameters (ie. stability fees, collateral types and rates) through the voting power of MKR holders holders.

The Foundation is a part of the Maker Community, MakerDAO consists of the whole Maker Community, plus the Maker Protocol (ie. smart contracts, Dai, oracles, governance). MakerDAO is the Godzilla of DeFi, a decentralized beast born of Vitalik’s nuclear bomb: Ethereum. … On Ethereum, it all started with MakerDAO, a protocol that turns anyone’s ether (ETH), USDC or BAT holdings into loans of a dollar-pegged stablecoin minted for this purpose: dai

Maker Dao Finance Facts

Defi Coin NameMaker Dao Defi Coin
Short Name DAI
Platform Decentralized Finance
Ethereum Contract0x6b175474e89094c44da98b954eedeac495271d0f
Chat Option Click Here To Visit Maker Dao Chat
Circulating Supply1,407,248,137 DAI
Official WebsiteClick Here To Visit

What Makes DAI Unique?

DAI’s main advantage lies in its soft peg to the price of the U.S. dollar. The crypto market is notorious for its volatility with even the largest, highly-liquid coins such as Bitcoin sometimes experiencing price changes (both up and down) of 10% or more within a single day. Under these circumstances, traders and investors are naturally predisposed to add safe-haven assets to their portfolios, whose stable price might help offset significant market fluctuations.

One such kind of asset are stablecoins, of which DAI is one example. These are cryptocurrencies whose price is pegged to assets with a relatively stable value — most commonly traditional fiat currencies, such as USD or EUR.

Another key advantage of DAI is the fact that it is managed not by a private company, but rather by a decentralized autonomous organization via a software protocol. As a result, all instances of issuance and burning of tokens are managed and publicly recorded by Ethereum-powered self-enforcing smart-contracts, making the entire system more transparent and less prone to corruption.

In addition, the process of developing DAI software is governed in a more democratic way — via direct voting by the regular participants of the token’s ecosystem.

In MCD We Trust

Blockchain technology provides an unprecedented opportunity to ease the public’s growing frustration with—and distrust of—dysfunctional centralized financial systems. By distributing data across a network of computers, the technology allows any group of individuals to embrace transparency rather than central-entity control. The result is an unbiased, transparent, and highly efficient permissionless system—one that can improve current global financial and monetary structures and better serve the public good.

Bitcoin was created with this goal in mind. But, while Bitcoin succeeds as a cryptocurrency on a number of levels, it is not ideal as a medium of exchange because its fixed supply and speculative nature results in volatility, which prevents it from proliferating as mainstream money.

The Maker Protocol

The Maker Protocol is one of the largest dapps on the Ethereum blockchain. Designed by a disparate group of contributors, including developers within the Maker Foundation, its outside partners, and other persons and entities, it is the first decentralized finance (DeFi) application to see significant adoption.

The Maker Protocol is managed by people around the world who hold its governance token, MKR. Through a system of scientific governance involving Executive Voting and Governance Polling, MKR holders govern the Protocol and the financial risks of Dai to ensure its stability, transparency, and efficiency. One MKR token locked in a voting contract equals one vote.

How Is the DAI Network Secured?

Maker Dao Defi Coin is an Ethereum-based, ERC-20-compatible token. As such, it is secured by Ethereum’s Ethash algorithm.

Where Can You Buy DAI [DAI]?

The purchase of Maker Dao Defi Coin tokens is available on numerous online platforms. These include Decentralized Finance (DeFi) token swap protocols:

- Advertisement -


Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

- Advertisement -binance
Related Articles