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Maker

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1 MKR = 1,274.1 USD
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What Is Maker?

Maker (MakerDAO) is one the biggest and longest-standing DeFi protocols that run on the Ethereum blockchain. Maker was introduced in 2014 by Rune Christensen, and had a highly successful fundraising campaign in 2017 that attracted $12 million from the likes of Andreessen Horowitz. The platform introduced a way to create a decentralized stablecoin, called DAI, that is pegged to the US Dollar, but without the need for any centralized authority or backing by actual US Dollars.

Instead of using tangible collateral like USD in a bank, Maker uses collateralized assets in the form of other cryptocurrencies. The primary objective of the Maker protocol is to ensure that the value of DAI remains as close to $1 as possible, offering a decentralized alternative to traditional stablecoins.

Resources

Official Whitepaper:https://makerdao.com/en/whitepaper/#overview-of-the-dai-stablecoin-system

Official Website: https://makerdao.com/

How Does Maker Work?

Collateralized Debt Positions (CDPs)

To create DAI, a user must first lock up some amount of a cryptocurrency as collateral in what's known as a Collateralized Debt Position (CDP). The user can then generate a certain amount of DAI, which is determined by the value of the collateral and the collateralization ratio set by the Maker protocol.

Stability Mechanism

The key to ensuring that DAI maintains its peg to the US dollar lies in the system's incentives and penalties. If the price of DAI drifts above $1, users are incentivized to create more DAI by opening a CDP because they can potentially profit from the price difference. Conversely, if DAI's price is below $1, CDP holders have an incentive to purchase DAI and pay off their debt, reducing the supply and pushing the price back up.

Liquidation

In the event the collateral's value drops too much (below a set threshold), the CDP will be liquidated. This means the collateral will be automatically sold off to ensure that the value of DAI remains stable. This mechanism protects DAI holders from potential volatility in the underlying collateral.

Governance and Risk Management

The Maker protocol is not static; it can be updated and modified. Decisions about changes, such as which assets can be used as collateral or the set risk parameters for these assets, are made by the MKR token holders.

What Is MKR Token?

MKR is the governance token of the Maker system. Unlike DAI, which aims to maintain a stable value, MKR is a volatile asset that serves several purposes:

- Governance: MKR token holders have the right to vote on proposed changes to the Maker system. This includes decisions about which types of collateral to accept, risk parameters, system upgrades, and other vital protocol parameters.

- Stability Fee Payment: When users close out their CDPs, they need to pay a stability fee. This fee is paid in MKR. Once paid, the MKR is burned, reducing the total supply.

- System Backstop: In extreme cases where the system's collateral doesn't cover the value of DAI in circulation, MKR is created and sold on the open market to raise the necessary funds to cover the shortfall. This mechanism acts as a last-resort insurance for the system, but it also means that MKR holders bear the financial responsibility if things go wrong.

Maker's Impact on Finance

Maker has profoundly reshaped the financial landscape by introducing the world to the concept of decentralized stablecoins, specifically DAI. Unlike traditional finance, which relies on central institutions to issue and regulate currencies, Maker's DAI is overcollateralized by other cryptocurrencies, ensuring stability without centralized oversight. This innovation has democratized access to financial services, allowing for a more inclusive and transparent system. Beyond merely offering a stablecoin, Maker has pioneered novel financial instruments and governance models, challenging the norms of traditional banking. Its influence signifies a move towards a more open, resilient, and cost-effective financial ecosystem, paving the way for further advancements in the realm of decentralized finance (DeFi).

What Determines Maker's Price

In the dynamic landscape of cryptocurrency, the Maker (MRK) price today is influenced by a myriad of factors. Central to these is its role in the governance and stability of the MakerDAO system. The MRK token, sitting at the heart of this decentralized autonomous organization (DAO), plays a pivotal role in maintaining the stability of the DAI stablecoin. This significantly impacts the MRK cryptocurrency price.

As a governance token, MRK grants holders the power to vote on critical aspects concerning the collateralization rate of Collateralized Debt Positions (CDPs), directly affecting any Maker crypto price prediction. Moreover, the MRK token value is intricately linked to the performance of the DAI stablecoin. Mechanisms are in place to create or burn MRK in response to DAI price fluctuations, a strategy that maintains DAI's dollar-equivalent value and influences the current Maker cryptocurrency price.

Delving deeper into the MRK price chart, it becomes clear that the Maker MRK historical price has been shaped by its pioneering role in the decentralized finance (DeFi) sector. Maker employs a deflationary protocol, where a portion of the MKR fee is burned whenever a CDP contract closes. This serves to maintain a healthy balance between supply and demand, thereby influencing the MRK crypto market cap.

Furthermore, the transparency and community governance that Maker fosters, coupled with its innovative approach to mitigating volatility through a dual cryptocurrency strategy, are pivotal in shaping any Maker (MRK) price analysis. As the DeFi sector continues to expand, it is anticipated that Maker will carve out a more significant market share. This trajectory is keenly watched in the latest news on MRK price.

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coin.24Hcoin.7dayscoin.30dayscoin.90dayscalculator.common.one_yearcoin_market.all_time
+2.40%+13.22%-15.11%-47.24%-5.00%+5665.49%

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coin_market.timecoin.lowcoin.high
24h$1,242.61$1,331.47
7d$1,017.15$1,331.47
30d$1,017.15$1,523.9
90d$1,017.15$2,315.41
1y$197.77$4,064.84
coin_market.all_time$21.06(2017-01-30, coin_market.years_ago )$6,339.02(2021-05-03, coin_market.years_ago )

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$1,111,042,220.41
+2.40%
coin_market.fully_cap
$1,281,204,768.51
+2.40%
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$153,887,762.24
+4.91%
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+96.00%
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0.1385
coin_market.circula_supply
872,021.8 MKR
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902,455.18 MKR
1,005,577 MKR
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3.7
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430.35K(#28)
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1.03K
+45%
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384(#67)
+86%
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0.04%
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15
+1400%
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53%
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20%
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27%
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5
coin_price.reddit_ posts(24h)
12
-54%
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0
0%

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Is Maker MKR a Good Investment?

MKR, the governance token for one of Ethereum's most renowned DeFi platforms, stands as a prime investment choice among digital assets. Ranking among the top 50 in cryptocurrency market capitalization, its strong foundation is underscored by the widespread adoption of the DAI stablecoin, a favorite among DeFi aficionados. The escalating demand for DAI and enhanced engagement within the Maker ecosystem could propel the MKR price trajectory. Given these factors, the Maker token emerges as a potential addition to investment portfolios. The growing appeal of stablecoins, especially DAI, coupled with the surging interest in DeFi platforms, can further amplify MKR's value. Representing one of the most established DeFi initiatives globally, MKR's market metrics stand to benefit from the decentralized finance sector's increasing appeal, attracting both mainstream and institutional attention, leaving it with plenty of room to grow.

How to make money with Maker (MKR) Coin

Trading MKR: Engage in buying or selling the Maker token against diverse cryptocurrencies by monitoring market dynamics. Trading MKR effectively necessitates proficiency in fundamental, technical, and sentiment analysis. This ensures enhanced probability of successful trades and minimized potential losses, albeit, considering the volatile crypto environment, risks are inherent. HODL MKR: Over the years, MKR has seen an uptick in its value, parallel with the escalating popularity of the Maker Protocol and its DAI stablecoin among the crypto community. Opting to hold onto MKR for the long haul can be rewarding. However, it's essential to brace for patience as appreciations can be gradual and, at times, interspersed with potential bearish spells or market downturns. Engage in MakerDAO Governance: As an active Maker community constituent, your involvement in its governance can shape its trajectory. Your voting prowess can be pivotal in determining the platform's direction, profitability, and evolution, potentially accentuating MKR's intrinsic value. Staking MKR: Numerous centralized and decentralized exchanges present opportunities to stake MKR, promising attractive Annual Percentage Yields (APYs). Explore the "Stake and Earn" features on compliant exchanges, committing your Maker tokens to accrue compelling interest rates.

What factors influence Maker (MKR) price?

The stability fees collected by all the Dai loans are used to buy MKR from the open market and then burn it. This stability fee/burning mechanism is the primary source of value accrual for MKR.

Is MKR token considered DeFi?

As a utility DeFi token, MKR is required for paying the fees accrued on CDPs that have been used to generate Dai in the Maker system. Only MKR can pay these fees, and when paid the MKR is burned, removing it from the supply.

Is Maker decentralized?

MakerDAO operates as a decentralized entity, and the Maker Protocol serves as its software foundation, enabling users to generate and oversee the DAI stablecoin.

Is MKR a stablecoin?

MKR is not a stablecoin and therefore has a volatile price. However the Maker protocol is the issuer of the leading stablecoin. The coin plays a crucial role in the platform's ecosystem and supply mechanics. It has three main roles on the platform: it acts as a utility token, governance token and a recapitalization resource.

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PHOENXCORP
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insight113/750
201.49%
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price_sidebar.total_pnl $938,815.34
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insight397/500
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price_sidebar.total_pnl $3,860,531.29

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