An Overview of MakerDAO
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This piece provides an overview MakerDAO including how it functions and what long-term potential it may have.SourceWhat is MakerDAO?MakerDAO, also known as Maker, is a #crypto-collateralized stablecoin that uses a two-token system comprised of Dai, which targets a value of $1 per unit, and Maker (MKR), which is used to pay fees on Dai loans and grants governance input via voting on Maker’s policies, like the collateral ratio required on loans and the amount of fees charged on loans. Maker has a fixed maximum supply and when it is used to repay Dai loan fees it is burned, thereby reducing the circulating supply. To keep the price of a unit of Dai at $1, Maker employs incentive mechanisms that will be detailed later in this piece. For greater context on stablecoins as a category and the (...)