Maker (MKR) is one of the largest decentralized applications (DApps) built on the Ethereum blockchain. Founded by a group of developers, the Maker Protocol is governed by MakerDAO, a decentralized autonomous organization (DAO).
Key Features of Maker (MKR)
- Governance Token: MKR holders vote on protocol upgrades, collateral types, and risk parameters.
- Stablecoin Management: Controls the DAI stablecoin, pegged to the US dollar.
- Decentralized Finance (DeFi) Pioneer: Among the first successful DeFi projects managed by a DAO.
👉 Buy MKR on trusted exchanges
How Maker Protocol Works
- Collateralized Debt Positions (CDPs): Users lock Ethereum-based tokens (e.g., ERC-20) as collateral to mint DAI.
Governance Voting: MKR token holders decide:
- Accepted collateral assets.
- Stability fees (interest rates).
- Liquidation ratios (risk parameters).
- DAI Stability: Maintains its peg through algorithmic adjustments and over-collateralization.
Risk Parameters
| Parameter | Description |
|---|---|
| Debt Ceiling | Maximum DAI mintable per collateral type. |
| Stability Fee | Interest paid in DAI for borrowing. |
| Liquidation Ratio | Minimum collateral value required to avoid liquidation. |
| Liquidation Penalty | Additional fee incurred if vaults are liquidated. |
Where to Buy Maker (MKR)
MKR is available on major centralized (CEX) and decentralized exchanges (DEX):
- Binance
- Coinbase
- KuCoin
- HTX
- Crypto.com
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FAQs About Maker (MKR)
1. When was Maker (MKR) created?
- Launched in 2015 by Rune Christensen. Raised $12M in 2017 from investors like Andreessen Horowitz.
2. Can MKR be mined?
- No. MKR is a non-minable governance token.
3. What’s controversial about Maker?
- Ethereum Dependency: High gas fees and network congestion.
- Limited Collateral Types: Only select ERC-20 tokens are accepted.
4. Total Supply of MKR?
- Circulating Supply: 977,631 MKR | Max Supply: 1,005,577 MKR.
5. Competitors
- Compound (COMP), Aave (AAVE).
Pros and Cons
| Pros | Cons |
|---|---|
| Decentralized governance. | Ethereum network fees. |
| DAI is the 5th-largest stablecoin. | Restrictive collateral options. |
| Earn interest via staking. | Complex risk parameters. |
Future of Maker
Expanding ecosystem, user adoption, and enhancing DAI’s utility in DeFi.