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Difference between revisions of "MakerDAO"
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(Created page with "Maker is a smart contract lending platform that allows users to take out over-collateralized loans by locking-in collateral like Ether in exchange for Dai, a stablecoin pegged to the U.S. dollar. Once generated, Dai can be used as an hedge against volatility, a tool to get leverage on your collateral, or get yield through decentralized finance (DeFi) applications. The platform has enjoyed widespread adoption and is among the largest decentralized lending platform with ar...") |
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On the other hand, if system surplus exceeds debt, the protocol sells Dai via a surplus auction for MKR, which is subsequently burned. This mechanism incentivizes MKR holders to keep the system running as intended; bad governance will result in MKR value dilution and vice versa. More information on recapitalization can be found in Maker DAO’s [https://makerdao.world/en/learn/governance/mkr-token/ community development page], while auctions are elaborated on [https://docs.makerdao.com/keepers/the-auctions-of-the-maker-protocol here]. | On the other hand, if system surplus exceeds debt, the protocol sells Dai via a surplus auction for MKR, which is subsequently burned. This mechanism incentivizes MKR holders to keep the system running as intended; bad governance will result in MKR value dilution and vice versa. More information on recapitalization can be found in Maker DAO’s [https://makerdao.world/en/learn/governance/mkr-token/ community development page], while auctions are elaborated on [https://docs.makerdao.com/keepers/the-auctions-of-the-maker-protocol here]. | ||