MKR is the management token of the Maker DeFi platform. The platform has MKR and DAI tokens. The platform is a smart contract platform built on the Ethereum network. DAI is a smart contract ecosystem that supports and stabilizes the value of the token to equal the USD. Smart contracts called Collateralized Debr Positions (CDP) enable this to happen. MKR is used in voting, can be staked as risk management and security collateral to generate income. This method is used by most of the coins on the market and is very important especially for security and sustainability.
Maker was built based on Erc 20. It was released by Rune Christensen on December 18, 2017.
DAI is a crypto-collateralized stablecoin pegged to the US dollar, just like the most widely known and used Tether. It is the first stablecoin released. Transaction fees are paid in MKR while DAI is generated and used on the network. Transaction fees are eliminated by burning. In other words, as the use of DAI increases, so does the use of Maker, and its supply in the market decreases.
Maker (MKR) is a cryptocurrency with a market cap of over $2.5 billion. It is the 58th most valuable cryptocurrency in terms of market value. While there are 991,328.38 MKRs in the market, the total supply is 1,005,577 MKR.
DAI, on the other hand, has a market value of 6 billion 450 million dollars and is in 32th place. It ranks 3rd among the highest valued stablecoins. Tether and Binance follow USD. It has an algorithm that is constantly minted and burned so that its price remains equal to 1 USD, so its supply circulating in the market is always variable.
MakerDao
The MakerDao community decides the steps that DAI and Maker will take. Thanks to the platform's dApp, votes can be made with smart contracts in exchange for MKRs staked using wallets such as Parity, Metamask, Mist. Updates and developments planned to be made on the platform are realized with the votes of users holding MKR. MKR stakers can also submit bids on the platform themselves. The offer with the most votes among the offers is accepted on the platform. The platform is sort of self-regulating in this way.
THP smart contracts on the platform are created by MKR holders. MKR tokens sent to the platform are used to generate DAI bonds. MKR is locked on the platform and DAI is taken in return, it can be arranged like a kind of lending transaction. MKR tokens also remain locked as long as the DAIs received are not refunded.
When THP guarantees are low, MKR is produced and sold to the platform. Auto-Remaling also ensures that coins are protected in response to fraud, theft, and hacking attacks on the platform.