{"id":422,"date":"2021-05-17T11:53:03","date_gmt":"2021-05-17T11:53:03","guid":{"rendered":"https:\/\/deficoins.io\/?page_id=422"},"modified":"2021-05-17T11:53:03","modified_gmt":"2021-05-17T11:53:03","slug":"maker-review","status":"publish","type":"page","link":"https:\/\/deficoins.io\/review\/maker","title":{"rendered":"Maker Review: Read Before You Buy Maker and Avoid Losing Your Investment"},"content":{"rendered":"
Maker (MKR) dubbed decentralized autonomous organization (DAO) based on Ethereum<\/a> that allows anyone to lend and borrow cryptocurrency without the need for a credit check.<\/p>\n Maker (MKR) is the decentralized lending network, Maker’s core utility and governance token. For this, the network blends advanced smart contracts with a uniquely pegged stablecoin.<\/p>\n Contents<\/p> MakerDAO developed the Maker (MKR) token with the primary goal of ensuring the stability of MakerDAO’s DAI token and enabling governance for the Dai Credit System. MKR holders make critical decisions about the system’s service and future.<\/p>\n MKR and DAI are the two tokens used by MakerDAO. The DAI is a stablecoin and a modern form of the financial system that aims to provide an alternative to more volatile cryptocurrencies.<\/p>\n Meanwhile, the MKR is used to keep the DAI stable. The stablecoins use reserves of fiat currencies or even gold to peg it to the value of these real-world assets. However, this has proven to be ineffective. These structures allow a group to regulate an entity transparently. They are now prevalent in the industry, thanks in part to Maker’s success.<\/p>\n For your information, since fiat currencies and physical assets support them, certain stablecoins have lower volatility. To retain a required value, other stablecoins can be managed using blockchain-based protocols or algorithms.<\/p>\n MKR’s primary goal is to keep DAI pegged to the dollar. This dual crypto approach reduces uncertainty and gives users more trust in the project’s long-term viability.<\/p>\n The most significant change to the Maker Protocol is that it now recognizes any Ethereum-based asset as collateral for the Dai generation.<\/p>\n As long as it has been accepted by MKR holders and given unique, corresponding Risk Parameters through the Maker decentralized governance mechanism.<\/p>\nWhat is Maker?<\/span><\/h2>\n
\nMaker was also the world’s first DAO to translate all facets of a corporation’s functionality into smart contracts.<\/p>\n