Maker (MKR) is one of the largest decentralized applications (DApps) built on the Ethereum blockchain. Governed by MakerDAO, the Maker Protocol was developed by a team of innovators aiming to revolutionize decentralized finance (DeFi).
Key Features of Maker (MKR)
- Governance Token: MKR holders vote on critical protocol decisions, including collateral types and risk parameters.
- DAI Stablecoin: The protocol mints DAI, a decentralized stablecoin soft-pegged to the USD.
- Decentralized Finance (DeFi) Pioneer: One of the earliest successful DeFi projects managed by a DAO.
👉 Discover how MKR empowers decentralized governance
How Does Maker (MKR) Work?
The Maker Protocol enables users to generate DAI by locking Ethereum-based (ERC-20) collateral in Maker Vaults. Governance rights are proportional to the amount of MKR staked.
Key Components:
Collateralization:
- Approved tokens (e.g., ETH, WBTC) back DAI.
- Over-collateralization ensures stability.
Risk Parameters:
- Debt Ceiling: Max DAI mintable per collateral type.
- Stability Fee: Interest paid in DAI for loaning collateral.
- Liquidation Ratio: Minimum collateral-to-debt ratio to avoid liquidation.
Governance:
- MKR holders vote on proposals (e.g., adding new collateral types).
Where to Buy Maker (MKR) Tokens
MKR is available on top-tier centralized (CEX) and decentralized exchanges (DEX):
Recommended Exchanges:
- Binance – Low fees, high liquidity.
- Coinbase – User-friendly, fiat support.
- KuCoin – Wide altcoin selection.
👉 Explore top platforms to buy MKR
Steps to Buy MKR:
- Deposit Fiat on an exchange.
- Trade for MKR.
- Store in a secure wallet (e.g., MetaMask, Ledger).
FAQs About Maker (MKR)
1. How long has Maker (MKR) existed?
Founded in 2015, Maker raised $12M in 2017 via MKR token sales. Today, it manages **$14B+ in TVL**.
2. What’s controversial about Maker?
- Ethereum Dependency: High gas fees during congestion.
- Limited Collateral Options: Fewer ERC-20 tokens accepted.
3. What’s MKR’s token supply?
- Circulating Supply: 977,631 MKR.
- Max Supply: 1,005,577 MKR.
4. Can MKR be mined?
No. MKR is a governance token and unmineable.
5. What’s MKR’s market cap?
~$1.03B (64th largest crypto).
Maker (MKR) Competitors
| Competitor | Key Difference |
|------------|----------------|
| Compound (COMP) | Lending/borrowing focus, no stablecoin minting. |
Future of Maker (MKR)
- Expand Ecosystem: More DApps and integrations.
- Enhance DAI Utility: Grow adoption as a stablecoin.
Pros & Cons
Pros:
✅ 5th-largest stablecoin (DAI).
✅ Earn interest via Dai Savings Rate.
✅ Permissionless access.
Cons:
❌ Ethereum network fees.
❌ Limited collateral options.
Final Thoughts:
Maker (MKR) remains a cornerstone of DeFi, blending governance, stability, and innovation. For long-term potential, watch its DAI adoption and Ethereum scalability solutions.