Maker (MKR) is a cryptocurrency that runs on the Ethereum blockchain and focuses on the DeFi (Decentralized Finance) ecosystem. Maker is the protocol behind Dai (DAI), a decentralized lending platform and stablecoin. It is managed by an autonomous organization (DAO) called MakerDAO.
MakerDAO offers cryptocurrency users the opportunity to get loans without being affiliated with a central authority. The MakerDAO protocol allows users to create a stable cryptocurrency called DAI by locking collateral assets such as Ethereum (ETH) on the blockchain. DAI has a value pegged to 1 US dollar and different mechanisms are used to ensure price stability.
MKR is the native token of the MakerDAO protocol and is used to contribute to the governance of the platform. MKR holders can participate in decision-making processes on the protocol, submit suggestions and vote. Additionally, MKR holders contribute to the protocol's risk management fund and other operational costs.
Another important feature of MKR is the use of the MakerDAO protocol to support stability mechanisms. If the price of Dai deviates from $1, the mechanisms determined by the protocol using MKR tokens come into play and various measures are taken to ensure price stability.
MakerDAO and the MKR token play an important role in the world of decentralized finance. The protocol offers users the opportunity to obtain loans in a safe, transparent and decentralized manner, while the MKR token is used as a tool that contributes to the management of the platform.
