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Difference between revisions of "MakerDAO"
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=== Dai usecases === | === Dai usecases === | ||
* Dai is a great medium of exchange due to its stable value and being soft pegged to the U.S. dollar | * Dai is a great medium of exchange due to its stable value and being soft pegged to the U.S. dollar. | ||
* Users can use Dai to earn income on their ETH by minting Dai using their ETH and then depositing that Dai in some DeFi app to earn yield. | * Users can use Dai to earn income on their ETH by minting Dai using their ETH and then depositing that Dai in some DeFi app to earn yield. | ||
* Dai can be minted to get a leverage position on your collateral by depositing collateral, minting Dai and selling Dai to purchase more of the collateral. | * Dai can be minted to get a leverage position on your collateral by depositing collateral, minting Dai and selling Dai to purchase more of the collateral. | ||
*Dai can be used to avoid taxes by borrowing against collateral instead of selling it | *Dai can be used to avoid taxes by borrowing against collateral instead of selling it. | ||
==The Maker Protocol== | ==The Maker Protocol== | ||
===The Maker Protocol=== | ===The Maker Protocol=== | ||
The Maker Protocol is one of the largest | The Maker Protocol is one of the largest DApps on the Ethereum blockchain. Designed by a 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 [https://makerdao.world/en/learn/governance/gov-risk-framework/ 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. | The Maker Protocol is managed by people around the world who hold its governance token, MKR. Through a system of [https://makerdao.world/en/learn/governance/gov-risk-framework/ 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. | ||