Maker (MKR) Overview
- Current Price: $1,878.00
- 24h Trading Volume: $41.82 million
- Market Cap: Calculated by circulating supply (1 million MKR max)
- 24h Change: +0.00%
👉 Track real-time MKR price updates
What Is Maker (MKR)?
Maker is a decentralized lending platform enabling users to collateralize Ethereum (ETH) via smart contracts to mint Dai, a USD-pegged stablecoin. Key features:
- Collateralized Debt Positions (CDPs): Users lock ETH to generate Dai.
- Decentralized Governance: MKR token holders vote on protocol upgrades.
- Stability Mechanisms: Dynamic fees and liquidation systems maintain Dai’s $1 peg.
Maker’s Historical Milestones
- 2014: Protocol conceptualized for permissionless credit systems.
- 2015: Launched by Rune Christensen in Denmark.
- Transition to DAO: Governance shifted to MakerDAO (Decentralized Autonomous Organization).
- Growth: Over 2.1 million ETH locked in CDPs at peak.
How Does Maker Work?
Core Components
- Dai Stablecoin: Soft-pegged to USD via algorithmic adjustments.
MKR Token:
- Governance: Voting rights for protocol changes.
- Fee Absorption: Burned when system revenues exceed debts.
- Smart Contracts: Automate collateralization and liquidations.
Stability Mechanisms
- Target Rate Feedback: Adjusts Dai supply based on demand.
- Liquidation Penalties: Incentivize timely collateral top-ups.
Use Cases for Maker
- Decentralized Loans: Borrow Dai against ETH without intermediaries.
- Hedging Volatility: Dai provides stability during crypto market swings.
- DeFi Integration: Dai is widely used in lending protocols (e.g., Compound, Aave).
👉 Explore DeFi platforms supporting MKR
FAQ
Q: Is Dai always worth exactly $1?
A: No—Dai fluctuates between $0.98–$1.02 due to market dynamics but is algorithmically stabilized.
Q: How is MKR different from Dai?
A: MKR is a governance token with variable value, while Dai is a stablecoin.
Q: Can I earn interest with Maker?
A: Yes, by providing collateral to generate Dai or staking MKR in governance.
Q: What happens if ETH collateral drops in value?
A: CDPs are liquidated to repay debt, with penalties applied to undercollateralized positions.
Key Takeaways
- MKR powers MakerDAO’s decentralized governance.
- Dai combines stability with blockchain transparency.
- The protocol exemplifies DeFi innovation, replacing traditional banking services.
For live metrics: 👉 MKR Price & Market Data
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