What is Maker Dai?

Maker Dai (Maker)



Maker is a platform is a decentralized autonomous organization. It is seeking to minimize the price of the DAI (its stablecoin) against the US dollar. The Ethereum blockchain based platform is a next-generation platform. As a result it makes sure financial application become possible with a DAI stable coin system.

What is the Maker DAI Stablecoin system?

Firstly, the Dai Stablecoin System is a system developed by Maker. The Maker team consists of economist, developers, and designers from worldwide. The team and a decentralized autonomous organization which is governed by token holders. The system uses the DAI token as its fuel. Anyone from anywhere can choose any currency to police their confidence. A money that maintains its purchasing power.

The Dai token

The token is the cryptocurrency that is stabilized against the US dollar value. The token is created for use in the decentralized  stablecoin System that runs on the Ethereum Blockchain.

The Maker Dai token

In contracts to Dai, MKR token has a volatile price. The role of MKR in the Maker platform is different from that of a Dai token. The MKR token volatile price is because of its unique supply mechanics. It is the utility token, recapitalizes resources of the Maker system and governance token. As a utility token, MKR can be used to pay for fees accrued on CDPs used to generate the token in the Maker system. Only MKR and not Dai can pay the fees, meaning if the adoption and demand for CDPs and Dai increases, there is an additional demand for MKR.

As a governance token, MKR holder uses it vote for business logic and risk management of the maker system.

Risk management of the Maker Platform

Uses the MKR token, the Maker platform allows a holder to vote for the performance of the following actions:

  • Modify Target Rate: the modifying Target Rate can only be done in one specific circumstance which is when token holders want to peg the price of Dai to a target price.
  • Add new CDP type: you can create a unique set of risk parameters or a new Risk Parameters set for existing collateral types.
  • Modifying existing CDP types: Change the Risk Parameters for existing and already added CDP types.
  • Modify Sensitive parameter: token holder can change the sensitivity of the Target rate feedback mechanism.


In short, the Dai stablecoin System vision is to solve crucial problems facing the stable exchange of the value in the wider blockchain economy and the Ethereum ecosystem. The Risk management role goes the MKR token holders and the team focuses on the adoption of the Dai token is a responsible way.

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