DAI, the first Ethereum-based stablecoin

Almost every second cryptocurrency that was created after bitcoin tried to stand out with something new and surpass the digital leader of the cryptocurrency. In this article, we will review Maker (MKR) and DAI and talk about their features.

What is it?

MKR is an internal token of the Maker protocol. The main goal of the project was to create a decentralized asset that will be linked to real assets.

The first stablecoin based on Ethereum

Even during the birth of Ethereum, the market needed a stable currency, the price of which would be tied to real assets, such as fiat, gold, and precious metals. Therefore, the first Ethereum-based stablecoin was DAI. Work with DAI is provided by smart contracts based on the Maker protocol. It is runned by a decentralized community of MKR token holders.

MKR and its features

Maker has its own MKR token, which serves as an excellent tool for attracting investment in the project. Token holders are also shareholders who influence the decisions and development of the ecosystem through voting.

MKR cannot be obtained by mining, but you can purchase it on the Cryptology exchange.

Initially, the tokens were created in order to attract people to the project. The user bought a “share” of the project and could directly influence its development. It sounds very profitable, but you need to understand that by voting, you take responsibility for the development of the ecosystem. Incorrect decisions lead to the loss of funds of all users and vice versa.

After analyzing the MKR statistics from 2017, we can say that users made the right decisions since the rate has increased from $20 to $2511 at the moment.

Forecast

Stablecoins have always had good support from investors and users. But MKR will receive even greater support after the launch of the exchange, where users will get an opportunity of margin trading of tokens on the ERC-20 protocol.