What is MakerDAO?
Whether or not you are a cryptocurrency hobbyist or not, JIFU is excited to share a major development in the crypto-world. What is it that people are buzzing about now? It’s MakerDAO!
So what is MakerDAO? It is a decentralized organization built on Ethereum to allow lending and borrowing of cryptocurrencies. What makes the organization’s coin so unique is that it is backed by trustlessly staked cryptocurrency.
One of the MakerDAO stable coins is called a dai, which is worth $1 because that’s the value the smart contracts enforce, primarily by collateralization rules. The other coin is called MKR, and the two regulate the value of coins.
Why is it so Disruptive?
The reason that MakerDAO is causing so many waves in the crypto world is that it has created a protocol allowing anyone with ETH and a MetaMask wallet to lend themselves money in the form of DAI.
In fact, MakerDAO is the largest project on the ETH network, with over 2% of ETH coins locked into it. Nothing like this has existed before, but it opens the door to many opportunities that have never been possible before.
MakerDAO was created in 2015 by Rune Christensen, and has developed into a major success as far as DeFi goes. It is still relatively young as compared to other projects like BTC, which was developed over ten years ago.
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