Review on Maker by Mr Benji

Name: Maker
Item: Maker
Rating: 4

June 26, 2019

Maker, Maker playmaker

- Maker is a smart contract platform at Ethereum that supports and stabilizes Dai's value thanks to the dynamic Collateralized Debt Positions system, independent feedback mechanisms and adequately motivated external users. Dai Stablecoin is a cryptocurrency supported by collateral, the value of which is stable in relation to the US dollar. Stable digital resources, such as Dai Stablecoin, are necessary to fully exploit the potential of blockchain technology.

- Maker allows anyone to use Ethereum resources to generate Dai on the Maker platform. Once generated, Dai can be used in the same way as any other cryptocurrency: it can be freely sent to other users, used as payment for goods and services or stored as long-term savings. Importantly, generating Dai also creates the components needed to create a robust and decentralized platform for margin trading.

- CDP have security assets deposited by the user and allow him not only to generate Dai, but also to increase debt. This debt effectively blocks the deposited collateral assets within the CDP until it is repaid by returning an equivalent Dai amount, at which point the owner may withdraw his collateral again. Active CDPs are always secured in excess, which means that the collateral value is higher than the debt value.
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