What is MakerDAO ? ( An introducing Dai Stablecoin )

what is makerdao


This section describes MakerDAO and Dai Stablecoin.

Table of Contents

1. What is MakerDAO?

2. What is Dai Stablecoin?

 2.1 Dai : Currency-Like Features

 2.2 Dai as a Means of Preserving Value

 2.3 Dai as a Medium of Exchange

 2.4 Dai as a Value Measure

 2.5 Dai as a Basis for Deferred Payments

 2.6 Collateral Assets

3. Summary

1. What is MakerDAO? ( makerdao・mkr )


MakerDAO is an open source project on the Ethereum blockchain. MakerDAO is an autonomous decentralized organization founded in 2014. This project is managed by people around the world who hold the governance token MKR. Through scientific governance systems such as executive and governance voting, MKR holders manage the Maker Protocol and Dai’s financial risk to ensure its stability, transparency and efficiency.

The influence of an MKR in voting is proportional to the amount of MKR that the MKR voters are staking in the voting contract. In other words, the more MKR tokens locked in a voting contract, the greater the decision-making power of the voter.

In other words, cryptocurrency beginners tend to focus on’volatile’cryptocurrencies, such as Bitcoin, but if Bitcoin is used for betting, for example, it will be in the future for both stakes and its return assets. You will take risks. I think that many people lose money at first, but most people buy volatile coins and enjoy it like gambling. But for Stablecoin, that’s a different story.

However, recently, efforts have been made to increase assets by staking Ethereum. Even with Ethereum-based MakerDAO, you can get a stable coin called Dai with a fixed price by staking MKR (Dai is linked to dollars). Dai can also buy Dai directly at the point of sale for use in trading. You can buy MKR and Dai with GMO Coin at Japanese sales offices.


2. What is DAI Stablecoin ?

what is makerdao
what is makerdao

Dai Stablecoin is a fair decentralized cryptocurrency backed by collateral soft pegged to the US dollar. D$ai is kept in a crypto wallet or platform and is supported by popular blockchains such as Ethereum.

D$ai is easy to generate, access and use. Users generate Dais by depositing collateral assets in a Maker Vault within the Maker protocol. In this way, Dai is distributed and users have access to liquidity. You can also get Dai by purchasing from a broker or exchange, or simply receiving it as a payment.

Once you generate, buy, or receive a Dai, you can use it like any other cryptocurrency. In other words, you can also send cryptocurrencies to others and use them to pay for goods and services and keep them as savings using a feature of the Maker protocol called the Dai Savings Rate (DSR).

All Dais in circulation are directly backed by excess collateral whose collateral value is higher than Dai’s debt value, and all Dai transactions are open to the public on the Ethereum blockchain.

2.1 Dai : Currency-Like Features ( what is makerdao )

what is makerdao
what is makerdao

In general, currencies have four functions.

・ Value storage means

・ Medium of exchange

・ Value scale

・ Criteria for deferred payment

Dai has properties and use cases designed to fulfill these functions.

2.2 Dai as a Means of Preserving Value ( what is makerdao )

A value-preserving means is an asset that is maintained for a long period of time without significantly degrading its value. Dies are stablecoins and are designed to serve as a store of value even in volatile markets.

2.3 Dai as a Medium of Exchange

Exchange media represent a measure of value and are used to facilitate the sale, purchase, or exchange (transaction) of goods or services. Dai Stablecoin is used for all kinds of transactions around the world.

2.4 Dai as a value measure

A value scale is a measure of value used to price goods and services (for example, US dollars, euros, and Japanese yen). Dai’s current target price is 1USD (1Dai = 1USD). Dai is not used as a measure of value in the off-chain world, but it does serve as a measure of value within the Maker protocol and some blockchain decentralized applications. Dies are used to price types of application services instead of fiat currencies such as the US dollar.

2.5 Dai as a Basis for Deferred Payments

Dai is used to pay off debt within the Maker protocol (for example, users use Dai to pay stabilization fees and close the vault). This advantage distinguishes Dai from other stablecoins.

2.6 Collateral Assets ( what is makerdao )

The Maker protocol uses collateral assets deposited in Maker Vault to generate and back up Dais to maintain stability. Collateral assets are digital assets that MKR holders have voted to accept in the Protocol.

The Maker protocol accepts Ethereum-based assets approved by MKR holders to generate Dai as collateral. MKR holders must also approve specific risk parameters for each collateral they accept (for example, the more stable the asset, the more forgiving the risk parameters, and the higher the risk, the more stringent the risk parameters. there is). See below for more information on risk parameters. Various decisions made by MKR holders are made through Maker’s decentralized governance process.

3. Summary ( what is makerdao )

what is makerdao
what is makerdao

MakerDAO is Denmark’s oldest blockchain protocol and is Ethereum’s largest Dapp. Therefore, I think its scale and security are higher than others. There are other stablecoins, but personally the most reliable is the Maker protocol and its passing Dai. I think everyone who started cryptocurrencies will buy Bitcoin and Ethereum first.

However, Bitcoin, Ethereum, and other altcoins are often volatile and costly. Therefore, there are stablecoins backed by dollars. Dai is a dollar-backed stablecoin that is currently kept at around 115 yen. See the Maker DAO White Paper for more information on how to keep prices.

Continuing from the previous story, those who started cryptocurrencies lose because they don’t have the knowledge yet. It’s also true that it’s hard to look at (MKR) cryptocurrencies like MakerDAO. However, if you deposit MKR as collateral in a Maker Vault, Dai will be generated. The higher the MKR, the lower the risk. Therefore, if you lose money with Bitcoin or Ethereum, it is safer to buy MKR and keep it in the safe.

I think that it is this MKR and Dai stablecoin that are considered to be hard to lose among various virtual currencies. It is not a loss for those who play cryptocurrencies to remember this coin in the corner of their head. GMO Coin has started handling MKR and Dai at domestic cryptocurrency sales offices.

Of course, you can buy it with GMO coins, but there are still some wait-and-see points at domestic sales offices. Therefore, if possible, we recommend purchasing at a major overseas cryptocurrency store such as Binance. In that case, I think it is safe to bring and store a famous cold wallet such as Ledger.

Reference URL: https://maker dao.com/ja/whitepaper/

  • ITやガジェットなどをメインに記事を書いています。ご相談は、メールまでお願いします。Tokyo Web Writer | hideyuki001


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