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Maker

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Description

What does Maker crypto do?

There are many situations in which the volatility of cryptocurrencies makes them impractical. When utilizing crypto for loans, long-term bets, and long-term investments, a highly volatile asset may not be the most viable option. Maker is a decentralized autonomous organization (DAO) that offers a reliable stablecoin called DAI as a solution to this problem. Maker utilizes a smart contract to control the amount of DAI in circulation.

The Maker smart contract is basically a contract that holds collateral as debt. To obtain DAI, an individual must pay Maker an appropriate amount of ETH as collateral. Based on the amount of DAI distributed and the amount of ETH owned as collateral, the smart contract controls the production or burning of DAI. Each DAI is pegged to 1 USD.

What is Maker coin (MKR) used for?

Of Maker’s two coins - MKR and DAI - MKR is the more volatile crypto. MKR is traded on public exchanges, used to vote in the network, and used to pay for fees associated with maintaining proper amounts of DAI. As new proposals to the Maker platform are introduced, users can vote for or against them with their MKR. MKR is also rewarded to voters and contributors from accumulated fees paid by Maker’s users.

How can Maker coin (MKR) appreciate in value?

Like all other cryptocurrencies, Maker coin’s value and price are dictated by supply and demand. As long as exchanges and individuals choose to use DAI as their stable currency of choice, then people will buy MKR to have a say in the governance of Maker as a network as well as speculate on its future. Users will want to both trade MKR as well as be rewarded for contributing to the network.

What are the differences between Maker and its competitors?

Maker’s main competitor is Tether. Tether has the first mover advantages over Maker and is also accepted by many exchanges. Still, Maker may benefit from the fact that Tether is controlled by a centralized entity and as a result, has been under a large amount of scrutiny by the crypto community. Stablecoins are growing in popularity and DAI has a unique vision for introducing transparency through smart contracts.

  • Mainnet Launch: Yes
  • Open Source: Yes
  • Technology: Blockchain
  • Total Coin Supply: 1,000,000 MKR (668,228 in circulation)
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Description

What does Maker crypto do?

There are many situations in which the volatility of cryptocurrencies makes them impractical. When utilizing crypto for loans, long-term bets, and long-term investments, a highly volatile asset may not be the most viable option. Maker is a decentralized autonomous organization (DAO) that offers a reliable stablecoin called DAI as a solution to this problem. Maker utilizes a smart contract to control the amount of DAI in circulation.

The Maker smart contract is basically a contract that holds collateral as debt. To obtain DAI, an individual must pay Maker an appropriate amount of ETH as collateral. Based on the amount of DAI distributed and the amount of ETH owned as collateral, the smart contract controls the production or burning of DAI. Each DAI is pegged to 1 USD.

What is Maker coin (MKR) used for?

Of Maker’s two coins - MKR and DAI - MKR is the more volatile crypto. MKR is traded on public exchanges, used to vote in the network, and used to pay for fees associated with maintaining proper amounts of DAI. As new proposals to the Maker platform are introduced, users can vote for or against them with their MKR. MKR is also rewarded to voters and contributors from accumulated fees paid by Maker’s users.

How can Maker coin (MKR) appreciate in value?

Like all other cryptocurrencies, Maker coin’s value and price are dictated by supply and demand. As long as exchanges and individuals choose to use DAI as their stable currency of choice, then people will buy MKR to have a say in the governance of Maker as a network as well as speculate on its future. Users will want to both trade MKR as well as be rewarded for contributing to the network.

What are the differences between Maker and its competitors?

Maker’s main competitor is Tether. Tether has the first mover advantages over Maker and is also accepted by many exchanges. Still, Maker may benefit from the fact that Tether is controlled by a centralized entity and as a result, has been under a large amount of scrutiny by the crypto community. Stablecoins are growing in popularity and DAI has a unique vision for introducing transparency through smart contracts.

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