Maker is decentralized autonomous organization and smart contract platform that runs on Ethereum. Its comprised of the MKR token and the Dai stablecoin.
Maker’s main purpose is to act as a dynami
c system to stabilize the value of the Dai against the US Dollar , pegging it at a 1:1 ratio (1 Dai=1 USD). Stablecoins like Dai are a safe haven from the wild volatility of the crypto market.
Maker is a good example of the many spectacular products and services that people are building on the Ethereum smart contract platform. As the Dai is generated based on demand in exchange for Ether, usually at a 150% rate. If Ether is trading at 100$ , then you will need 1.5 Ether or 150$ to create the Dai.
With 100 Dai valued at 150$ worth of Ether , it might seem like a strange investment. However, if you wish to return the 100 Dai you will always get 150$ worth of Ether, regardless of price fluctuations. This destroys the 100 Dai in the process.
The MKR token is the only that can be used to pay the fees for generating Dai and is also used as voting power by MKR holders to decide on the changes brought to the network but also for proposing changes.
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