What is Maker cryptocurrency?
Maker is an Ethereum token that describes itself as “a utility token, governance token, and recapitalization resource of the Maker system.” The purpose of the Maker system is to generate another Ethereum token, called Dai, that seeks to trade on exchanges at a value of exactly US$1.00.
What is MKR?
Maker (MKR) is the main utility and governance token for the decentralized lending platform, Maker. Maker is an Ethereum based decentralized autonomous organization (DAO) that allows anyone to lend and borrow cryptocurrency without credit checks.
What can you do with maker crypto?
You give the Maker CDP smart contract your ether and it lets you take out a loan in Dai. If the value of your ether goes below a certain threshold, you either have to pay back the smart contract as you would a bank or it will auction off your ether to the highest bidder.
How does maker DeFi work?
For those unfamiliar with Maker, the platform allows any user to autonomously take out a loan (denominated in Dai) by staking digital assets such as ether (ETH) as collateral. Furthermore, all lending actions are performed by smart contracts, meaning that no human is involved in the facilitation of any specific loan.