Website: makerdao.com

MakerDAO is a decentralized finance (DeFi) protocol built on the Ethereum blockchain, focused on creating a decentralized stablecoin system. Founded in 2017 by Rune Christensen, MakerDAO introduced the Maker Protocol, which allows users to generate Dai, a stablecoin pegged to the U.S. dollar. Dai is created by locking various types of cryptocurrency collateral into Maker Vaults, smart contracts designed to maintain the system’s stability and solvency.

The protocol uses a two-token system. Dai serves as the stablecoin used across the DeFi ecosystem, while Maker (MKR) functions as a governance token. MKR holders participate in the decentralized governance process, voting on risk parameters, stability fees, and the approval of new collateral types to ensure the protocol evolves according to community consensus.

To generate Dai, users lock approved assets such as ETH or other cryptocurrencies into Maker Vaults. This collateralized debt position (CDP) system allows users to access liquidity without selling their underlying assets. The value of the collateral always exceeds the amount of Dai generated, ensuring the system remains over-collateralized to maintain stability and prevent insolvency.

MakerDAO operates as a decentralized autonomous organization, where decisions about protocol updates and risk management are made collectively by MKR holders. This governance model enables MakerDAO to adapt to changing market conditions while prioritizing the interests of its community.

As a foundational element of the DeFi ecosystem, MakerDAO has integrated with numerous platforms and services, expanding the use of Dai in lending, borrowing, and trading applications. Its innovative approach to decentralized stablecoin issuance has positioned it as a key player in the development of open financial systems.