MakerDAO Review: Complete MKR Overview
📝 Project Overview 📝
Maker is a functional token that allows holders to govern the Maker system. So, ownership of a Maker token gives you a stakeholder position in the broader Maker ecosystem.
By owning a Maker token, you’re able to take part in the maintenance of the entire Maker ecosystem. This includes its stablecoin DAI, which we’ll touch on briefly in a moment.
This ERC-20 token aims to help stabilize cryptocurrencies in order to help drive the adoption and growth of the industry.
⚙️ Technology ⚙️
Maker’s value is tied to that of DAI, which is its decentralised stablecoin pegged to the US dollar. The purpose of the token is to stabilize DAI through the use of Collateralized Debt Positions
When using a CDP, users deposit their assets into a smart contract. The asset is considered collateral for a loan.
Once the assets are deposited, the user has the ability to generate the equivalent value they want to borrow in DAI. When the DAI gets paid, the user can then withdraw their collateral.
MKR has three primary uses on the Maker platform. As a utility token, as a governance token, and as a resource for recapitalization.
The emergency shutdown feature will stop and settle the Maker Protocol to ensure that everyone on the platform, both CDP holders and DAI holders, receive the value of the assets to which they are entitled.
💰️ Token 💰
There was no ICO for MKR tokens. Instead, the project was meticulous and selective about when and where they offered MRK tokens for sale.
Doing so required more interaction on the part of the buyer than would typically be required during an ICO or crowdsale.
Maker consistently sits in the top 25 of total market capitalization and currently has one million MKR circulating.
👨💻️ Team, Partners & Development 👨💻
Maker has a well-sized team working together to make Maker what it is today. There are plenty of designers, engineers, and developers from around the globe supporting the Maker project.
In the Maker Roadmap, the biggest update to look forward to is the Multi Collateral DAI or MCD.
With the upgrade to Multi-Collateral DAI, the MKR token will take on a more significant role in the broader ecosystem. Instead of using the pooled ether as the recapitalisation resource, MKR will be sold in order to raise the funds to recapitalise the system.
📈 Trading & Wallets 📈
Maker does less volume than comparably sized altcoins which could impact on liquidity especially for those larger block orders.
There is relatively limited exchange support for the MKR token and the top 2 exchanges have the bulk of the trading volume. This is less optimal from a price discovery perspective.
MKR is also not listed on some of the more popular exchanges like Binance, Coinbase etc.
For storage, given that this is an ERC20 token you have quite a range of options. You should probably opt for a hardware wallet like a Ledger or Trezor.
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⛓️ 🔗 Helpful Links 🔗 ⛓️
► Website: https://makerdao.com/
► Whitepaper: https://makerdao.com/en/whitepaper
► GitHub: https://github.com/makerdao/
► CDP Portal: https://cdp.makerdao.com/
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
