Review on Maker by Robiul Islam
A resilient stablecoin, Transparent and sustainable finance.
It is an unbelievable innovation that is a profitable addition to the Ethereum network as well as any projects that require a decentralised stable coin. Stable coins are one of the most sought after utilities in the most essential market in the world, and Maker is a platform that is well underway in providing one.
It uses three primary mechanisms to stabilize the coin. First, the ‘target price’ is used to calculate how much any given ERC twenty tokens are compared to the US dollar. Second, the ‘Target Rate Feedback Mechanism’ is engaged in the case of severe market stability and breaks the USD peg to dampen the DAI’s disbelief and also to change the target price over time. Third, the ‘Sensitivity Parameter’ determines the rate of DAI’s price change in relation to the US dollar movement and is also used to separate the TRFM in the event of a market collapse.
Value of Maker token is indirectly dependent on the usage of DAI. Dai is highly incorporated in a crypto industry, the price of the MKR tokens would increase substantially.
The Stable coin might open up the scope for such kind of business models then all these facts tell that MKR tokens is unchangeable not highly priced but indicate the comprehensive application of its service.
Updated 5 years ago
Rating has not been changed
DAI is the first stablecoin to be made available through Coinbase Earn. Customers across the globe can now earn DAI by watching video lessons and completing quizzes about our stablecoin and its features.
EYES Protocol has adopted Dai into its ecosystem to protect its users from price volatility! Users can now swap between EYES and Dai.
Maker and Axie Infinity Partner. In the Axie universe, gamers can now receive Dai-themed NFTs for opening CDPs. This is a great collaboration!
Pros
- It is an exceptionally useful tool for partnering projects to incorporate and provide added value to their clients.
- A decentralised stablecoin in a volatile market.
- It is the first DAO ever, it even predates the Ethereum project.
- Due to its value which remains constant, it is spared from market brutality of ups and downs.
- Coin holders have the brilliant option of lending the coins and earn interest.
- Token holders can vote on system actions.
- Maker provides the option of liquidation.
- Less vulnerable to hacks, since no collateral is held on the blockchain.
- It only costs 2.5% per year.
Cons
- Expensive and slow liquidation into fiat.
- Need regular audits to ensure transparency.
- Demand for stablecoins is still theoretical.
