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Sakete, Benin Republic
4 Level
207 Review
581 Karma

Review on Maker by Temitope Babatunde

Revainrating 4 out of 5

MakerDao, Vanguard In Decentralized Lending Platform.

MakerDao platform was launched in 2014 by Rune Christensen in Switzezland but it's Headquater is in USA. The platform was built on the smart contract of ethereum network that is why one can always use any erc20 tokens one can also use USDC, BAT and WBTC now. What prompted the formation of MakerDao is the need for stability in the volatile market of cryptocurrency.
The system is decentralized that is, it worked independently of no one. The user can borrow or lend his assets at any given time and at anywhere. When a user want to borrow money such one will send the collateral assets to 'Collateralized Debt Position(CDP) which is a software that is runing on the ethereum smart contract, the CDP will now generate DAI which is a stablecoin that is pegged to USD. the more asset one add as collateral the more your DAI. One can now use the DAi for what you want to use it for; one can as well convert it to fiat currency, and if you want to get your asset back, you just need to pay your DAI back and the asset will be released from the CDP system.
The entire MakerDao ecosystem also has another token called MRK, it is the native token of the platform and the holder has the right to vote or participate in the governanace of the platform when the token is locked within the system. Metamask is the major wallet of the system as well as some other hardwallet and coinbase wallet. The team is very supportive and the system can be trusted. If someone hold DAI such one can earn the Dai Saving Rate or DSR.
In conclusion, if you are looking for a decentralized platform where you can either lend or borrow you may want to think of MakerDao.



Pros
  • The coin generated on the CDP smart contract which is DAI is stable and not affected by any volatility.
  • Because it is decentralized, it can be operated anywhere and at anytime.
  • If you want to take a loan, you d'ont need any KYC or use any documents.
  • It has good history of transparency and security.
  • The margin call fee, which we can say is interest is very low compare to traditional financial institutions.
  • Loan to value is very high.
  • You can take a loan from 1 dollar to 1million dollars.
Cons
  • The assets one use as collateral is not insured.
  • If ones asset as collateral goes down and one didn't know to increase one's asset will be auctioned.
  • Only ethereum related tokens can be use as collateral.