Review on Maker by francis fernandez
MAKER-integration MKRs - Dai-Dolar!
Maker (MKR) is a digital trading platform that uses the Ethereum blockchain to carry out operations with the Dai cryptocurrency.
The purpose of its creation is to trade the Ethereum Dai cryptocurrency; a digital currency that operates as a payment instrument.
Its premise is to trade with a currency with high stability against the dollar to face changes in the foreign exchange market. To do this, it uses the Ethereum Dai cryptocurrency; since the value of your token Maker is too volatile. Also, the value of the token Maker increases when it is traded with Dai.
The Maker platform aims to achieve the parity of Dai against the dollar, by pairing the cryptocurrencies MKRs with Dai on a single platform.
Dai has managed to become one of the most stable cryptocurrencies on the market; achieving an equivalence of 66 Dai = 1 Ether = 1 US Dollar.
How does mining on the Maker platform work?
Marker cryptocurrencies are created only when it is necessary to stabilize the value of Dai, through open trading on the market. This implies that mining is not carried out in a normal way but in function of achieving the balance of the Dai against the USD.
How is the exchange rate balance between Dai, Ether and the US dollar achieved?
The mechanism to balance the exchange market used by Marker has been achieved thanks to its CDP system (Collateralized Dept positions). This consists of developing a smart contract (CDP) where the cryptocurrencies sent by Ether users are deposited; which will serve as collateral or equivalent for Dai. That is to say, the Ether operates as a guarantee to create the Dais in line with the Ethers received by the smart contracts created.
In this sense, the rise in demand for Dai causes an increase in the requirement for MKRs. According to this, the reward for Maker miners is directly proportional to the need for MKRs.
Pros
- Makes it easy to trade a cryptocurrency with little volatility; which makes the possibility of exchange losses less risky.
- Thanks to the integration of Ether with the Marker platform, its users can store their cryptocurrencies in any wallet linked to Ethereum.
- This cryptocurrency has an excellent 1 to 1 parity in relation to the dollar.
- Mining MKRs is fully accessible to anyone who can pay the Dai equivalent exchange price.
Cons
- Maintaining the Dai exchange rate is quite risky in such a competitive and unpredictable market.
