Maker MKR

1. Summary

Ranks

Liquidity

100

Developer

49

Social

98

Momentum (beta)

86

Stack Rank™

87

Price

$2,856.99 -3.1%

Market Cap

$2.64B (#40)

Supply

924,620.00 / 977,631.00

Tags

DeFi Governance Near Protocol Ecosystem Lending/Borrowing Avalanche Ecosystem Polygon Ecosystem Arbitrum Ecosystem Ethereum Ecosystem Real World Assets (RWA) Paradigm Portfolio Defi Pulse Index (DPI) Stablecoin Protocol

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Price
52W High price	$3,964.51
52W High date	5th Apr 2024 (2 weeks ago)
All Time High (ATH) Date	3rd May 2021 (2 years ago)
ATH Price	$6,292.31
% From ATH	-41.45%
All Time Low (ATL) Date	16th Mar 2020 (4 years ago)
ATL Price	$168.36
% From ATL	2088.25%

Supply & Trading Volume
Trading Volume (24h)	$126.87M
Total Supply	977,631.00
Max Supply	1.01M
Circulating Supply	924,620.00

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Description

When discussing Maker, we need to talk about the MKR token. The MKR Token was developed by MakerDAO and it is now used to support the stability of MakerDAO’s DAI token. Alongside this function, it also enables governance on key decisions on the operation as well as the future of the ecosystem.

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When discussing Maker, we need to talk about the MKR token. The MKR Token was developed by MakerDAO and it is now used to support the stability of MakerDAO’s DAI token. Alongside this function, it also enables governance on key decisions on the operation as well as the future of the ecosystem.

The unique part about MakerDAO Is the fact that it actually takes advantage of two tokens. These are MKR and DAI.

Now, DAI is a stablecoin that is designed to provide an alternative to volatile cryptocurrencies. The MKR token on the other hand is used to keep DAI stable. The interesting part here is the fact that traditional stablecoins typically tend to use reserves of FIAT currencies (USD) or gold to peg a cryptocurrency to the value of a real-world asset, and this, in turn, keeps it stable. Well, MakerDAO uses the MKR token to stabilize DAI.

The MKR Token Explained

When we look into MKR, this token is intended to help keep the other token, the stablecoin DAI at the same value as $1. MKR can be created as well as destroyed in response to the price fluctuations of DAI in order to maintain its dollar-equivalent value.

The holders of MKR gain voting rights on the Maker platform’s approval voting system, where MKR voters can vote on things such as the collateralization rate of the CDPs.

For this participation, they gain MKR fees as a reward, and the holders are incentivized to vote in a way that benefits the system. If the system works efficiently then the value of MKR is maintained or increases as a result, while on the flip side, if it does not, the value drops. MKR is an ERC20 token that is constructed through the usage of Ethereum protocols.

Features of Maker

DAI uses a system of collateralization, where holders can act as part of the controlling mechanism which helps manage the network.

DAI is issued when buyers end up purchasing a smart contract-based collateralized debt position that acts as a loan. This is bought with Ether (ETH) and DAI is given as a response to this purchase. ETH acts as the collateral. The system allows individuals to obtain a loan against their ETH holding, and when the loan is repaid, the DAI is destroyed, and fees occur in MKR.

The MKR token is essentially a solution for the case where the price of ETH falls quicker than the DAI system can handle, and if the collateral system isn’t enough to cover the value of DAI, then MKR is created and then sold to the market to raise the additional collateral which is missing. The Maker Platform was actually formerly known as MakerDAO and is the protocol as well as the governance framework for DAI and MKR. It is a decentralized autonomous organization (DAO) on the Ethereum blockchain.

Founders of Maker (MKR)

When it comes to the founders, MakerDAO, which is the first in the Maker ecosystem, was developed in 2015 by Rune Christensen, which is an entrepreneur.

The interesting part about Christensen is the fact that he has a degree in biochemistry, however, also studied international business. Before he started work on MakerDAO however, he co-founded and managed the Try China international recruiting company.

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