Review on Maker by Othere Obtentus
Ethereum Backed Stablecoin
Maker is a capital-backed collateral currency that participants can reimburse against their collateral backup asset. Moreover, in this method, the patented collateral token for Producer is backed by Ethereum as opposed to FIAT money. They are building this system on the framework of a basic banking structure. However, blockchain technology has been used to make digital payments and P2P transactions easier and quicker. The development firm named their stablecoin, DAI. 1 DAI = USD. But the whole asset is pegged to the Ethereum. As a matter of fact, DAI was developed as an ERC20-token on the Ethereum blockchain and it can not be mined. Rather, MKR tokens are burned to maintain DAI's equilibrium to keep it floating near 1 USD.
Pros
- Asset-backed collateralized token
- MKR tokens are burned in order to sustain stability
- Simpler and swifter international payments and P2P transfers
- Pegged to Ethereum
- Incentives and rewards for investors
Cons
- Not as high liquidity as other Stablecoins
- Small market share
- Not that efficient in maintaining a stable rate
