What is Maker (MKR)?

What is Maker (MKR)?

What is MKR? and what does the Maker Protocol provide?

What are MKR Coins? What services does the Maker Protocol platform offer? And what technology is behind it?



Let's find out about MKR Coins at Bitkub Academy in the article What is Maker(MKR)?





What is Maker (MKR)?



Maker (MKR) is an ERC-20 standard token that was created on the Ethereum network in 2015 as a lending platform called the Maker Protocol, which is considered as a decentralized finance service, also known as DeFi.



The Maker Protocol is a DAO (Decentralized Autonomous Organization) platform that is powered by smart contracts, where every MKR token owner can participate in decision making with changes, edits, or developments with the majority of the communities under the organization “MakerDAO”, making the MKR token a governance token.





Developers



MakerDAO was founded in 2015 by Rune Christensen, an entrepreneur from Sealand, Denmark.



Christensen graduated from the University of Copenhagen with a degree in biochemistry and studied International Business at the Copenhagen Business School. Prior to creating MakerDAO, he co-founded and managed the Try China company.





Interesting Technology



With MakerDAO being decentralized, the platform can meet the needs of its users’ and developers’ collective desire for development and sustainable change, wherein token holders can help make decisions. With the MKR token’s value relying on demand and platform efficiency, its users are provided equal rights and access in this area, creating a certain discipline and collective cooperation to improve the platform.



Users can borrow DAI through the Oasis Vault with the warrant of cryptocurrencies, like ETH. The withdrawn amount of DAI would be essentially lower than the collateralized amount, requiring overcollateralization. Afterward, DAI can be returned with additional Stability Fees and the returned DAI would be destroyed, with the collateral returned to the user. This is called the process of Collateralized Debt Positions (CDPs), which functions with smart contracts supporting as back-end technology.



A stablecoin created and regulated by the MakerDAO is DAI, which is considered a low volatility coin like the U.S. dollar, but instead works with smart contracts, or also known as an Algorithmic Stablecoin, that doesn't need to reserve the dollar in its treasury.



Algorithmic Stablecoins are coins with low volatility due to the increasing and decreasing number of coins in circulation, according to economic principles, making their value equivalent to the U.S. dollar, with efficiency and stability at the same time.



Now, as the Maker platform has been upgraded to accept more diverse cryptocurrency lending with not just Ethereum, but other ERC-20 standard tokens that are recognized and considered as trustworthy projects can be used as collateral for borrowing at different exchange rates.



This is a new technology called Multi Collateral DAI (MCD), in which the smart contracts have been verified by cybersecurity organizations like Chainsecurity to verify the efficiency of the operation of the platform.





Unique Points of Maker 



Based on the data from DeFi Pulse as of October 17, 2021, or at the time of writing, Maker is becoming increasingly popular and recognized, creating an estimated $15.4 billion U.S. dollar in total value locked (TVL). Maker now attains the title of the 2nd most total value locked platform in the world, next to Aave.



The Maker Platform has a lending service with its own stablecoin. As a result, it is more convenient and faster if users want to avoid situations that cause price fluctuations in different ways.

The DAI Saving Rate is a service that deposits DAI tokens in the system for increasing and decreasing rate of return according to the coin price mechanism to achieve stability through the vote of the MKR tokens holder.



 





In reference to statistics from Coinmarketcap on October 18, 2021, MKR is ranked as the 57th highest in terms of market capitalization, with around 2.51 billion U.S. dollars or around 84.2 billion Thai baht. MKR’s total circulating supply is at 991,328 MKR. 

Additionally, MKR once made an all-time high at 187,408.33 baht and is hovering around the price of 84,963.03 baht at the time of writing.





Conclusion



Maker (MKR) is the governance token of the Maker Protocol, a decentralized autonomous organization and a lending platform, where the holder of MKR tokens has the right to make decisions on any changes or developments to the platform.



The Maker platform is unique in its many attributes, one of which, being the MakerDAO, a decentralized autonomous organization that facilitates all activities in the platform, with MKR as its utility token and platform currency, creating a complete ecosystem for lending services and more.

References:

 Kraken, Coinmarketcap, Kriptomat, Chainsecurity, MakerDAO, DeFi Pulse, Decrypt

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