Review on Maker by Eve Vallenilla

To mitigate the problem that plagues most cryptographic protocols, many platforms have tried to link them with assets of stable value in the market that guarantees a transparent match between a digital asset and a legal tender.

This is the case of Maker, a platform that is based on the blockchain technology of the Ethereum network to create DAI bonds, through the versatility of smart contracts.

The main feature of this cryptographic protocol is its 1: 1 equivalence with the US dollar. Its stability in the face of changes in the stock market derives from this connection, since the USD is a FIAT currency of wide world recognition and highly stable.

In this way DAI acquires stable digital protocol characteristics and becomes the ideal currency for long-term financial projections.

What is the regulatory mechanism of the Dai bond?

The virtual Ethereum machinery used by Maker uses smart contracts to guarantee the stability of the Dai bond through the CDP (Collateralized Dept Positions) system.

Users pay a CDP to guarantee their access to Dai protocols.

Another way to enter the Maker mechanism to obtain Dai is by converting Ethereum cryptocurrencies to PETH through Pooled Ether.

Subsequently, Dai bonds are exchanged for one US dollar in the non-custodial capital market.

In this process of conversion and regulation of the stability of the currency, Artificial Intelligence also intervenes, because it is governed by the rules established by the DAO (Digital Autonomous Organization)

This regulatory mechanism of the value of the Dai currency generates confidence among its holders by being able to trade with a digital protocol protected against the volatility of the stock market, facilitating its multiple uses in different sectors.