Today's Maker (MKR) Price Overview
- Current Price: $1,872.39 USD
- 24-Hour Trading Volume: $43.71 million
- 24-Hour Price Change: +0.00%
- Max Supply: 1 million MKR
What Is Maker (MKR)?
Maker (MKR) is a decentralized peer-to-contract lending platform enabling overcollateralized loans via smart contracts. Users lock Ether (ETH) as collateral to mint Dai, a USD-pegged stablecoin. Dai’s stability is maintained through:
- Dynamic collateralized debt positions (CDPs).
- Autonomous feedback mechanisms.
- Incentivized external participation.
Dai can be used for payments, transfers, or savings—freely circulating without intermediaries.
Brief History of Maker
- 2014: Protocol development began for permissionless credit systems.
- 2015: Founded by Rune Christensen (current CEO).
- 2017: Launched Dai stablecoin via Ethereum smart contracts.
- Transition to DAO: Control shifted from Maker Foundation to MakerDAO, a decentralized organization governed by MKR token holders.
Key Milestone: Over 2.1 million ETH locked in Maker’s CDP contracts, making it one of Ethereum’s earliest and most adopted DeFi projects.
How Maker Works
MKR Utility:
- Pays transaction fees within the Maker ecosystem.
- Governs protocol upgrades (e.g., risk parameters, CDP types).
- Burned/generated to stabilize Dai’s peg (~$0.98–$1.02).
Stabilization Mechanisms:
- Collateralization: ETH-backed CDPs ensure Dai’s value.
- Automatic Liquidation: Protects against undercollateralization.
- Governance Voting: MKR holders decide on critical changes.
DAI Generation:
- Users deposit ETH → mint Dai → repay loans to unlock collateral.
Use Cases of Maker
Decentralized Finance (DeFi):
- Lending/borrowing without banks.
- Earning interest via CDPs.
Transparency:
- Smart contracts eliminate trust in centralized reserves (unlike Tether).
Global Accessibility:
- Anyone with ETH can access loans or stablecoins.
👉 Explore Maker’s latest governance proposals
FAQ
Q: How is Dai different from other stablecoins?
A: Dai is decentralized—backed by crypto (ETH) instead of fiat reserves.
Q: Can MKR tokens be mined?
A: No. MKR is only minted/burned to adjust Dai’s supply.
Q: What happens if ETH price crashes?
A: CDPs are liquidated to cover debts, protecting Dai’s peg.
Q: How do I vote with MKR?
A: Stake MKR in MakerDAO’s governance portal to propose or vote on changes.
👉 Learn more about MKR staking
Key Takeaways
- Maker combines lending, stablecoins, and DAO governance.
- MKR’s value ties to Dai’s stability—not speculative trading.
- A pillar of Ethereum’s DeFi ecosystem.