Maker (MKR) is a Cryptocurrency represented as a Smart Contract platform in the Ethereum Blockchain, that works by selling Dai tokens and seeks to minimize their volatility. This system stabilizes the value of the Dai bond through the Collateralized Dept Positions (CDP) platform. The Dai bond is exchanged at a value of one dollar. Hence, Dai coin is on the verge of being the most stable cryptocurrency in the market. Stablecoins are necessary to mitigate market risk. However, there are other stablecoins in the market, such as Tether (USDT), that were involved in different controversies.

History of MKR & Team

Maker platform was founded almost three years ago in 2015, MakerDao is lead by Rune Christensen, its founder and CEO, a graduate in Biochemistry from the University of Copenhagen in Denmark. This platform was launched in April 2016, but before that, it became the first negotiable token on the Ethereum network in August 2015. Maker Dai was officially launched on December 18, 2017.

MakerDAO team, which has thirty-five members, being its newest member Søren Peter Nielsen, a Software Scientist, who has held the position of the Head of Product from January 2018.

This team developed totally verifiable and transparent stablecoin system that could operate as a trusted asset-backed currency.

MKR’s Goals

MKR aims to act as a hedge currency that provides traders with a stable choice to most of the currencies currently on the market. Therefore, these currencies are very useful in the financial markets of the economy such as transparent accounting systems, international trade, gambling and financial markets in general.

Thus, by mitigating the market risk of crypto-assets compared to all other cryptocurrencies, there is a significant reduction in value fluctuations. Hence, Maker is ready to be the first intelligent cryptocurrency, because its goal is stabilization and growth.

How does Maker work?

Maker works in a process that contains four parts:

– In order to access the Maker system, a CDP is created.

– Then, Dai is generated and the debt is expected to be paid off.

– Once the debt is paid off, the user obtains full control over Dai.

– Withdrawal the collateral also takes place when a customer converts his or her Ethereum coins to the Pooled ether (PETH).

Thus:

CDP is created Dai is generated Debt reconciliation Withdrawing the collateral

This platform operates on the principles of the Digital Autonomous Organization (DAO) which means that it uses artificial intelligence (AI) so that it can control the Maker’ s ability to regulate itself and stabilize Dai. Therefore, the currency is autonomously maintained using smart contracts through that adapt and respond to market dynamics, which guarantees that the currency remains pegged to the USD and provides stability to traders regardless of market conditions.

How to buy MKR and Dai Tokens

Dai can be generated by anyone who can deposit collateral in the system in exchange for Dai and the platform will provide access to it. Then, once the debt has been paid off the assets are accessible and available to the holder, this transaction includes a significant commission in the stabilization of Dai.

Can also access the MKR token through the Ethereum blockchain, where one is required to buy either Ethereum or Bitcoin from platforms like Coinbase and exchange them for MKR. MKR tokens can, therefore, be stored in the MEW. MEW can be used to hold any token from the Ethereum blockchain. Using an Ethereum browser you can access the Oasis Decentralized Exchange (OasisDex) in which the MKR tokens and DAI are currently available.

The available tokens in circulation are about 618,000 and the total supply of MKR in the market is 1 million. This means that 61% of MKR’s total offering is in circulation trading, where 15% is owned by the core members.

Can only use MKR to pay the accumulated fees on CDPs that generate Dai in the Maker system, and if demand for Dai and CDPs rises, demand for MKR should also increase. Besides, when stability fees are paid with MKR, the spent Maker is destroyed forever. This reduces the total supply of MKR, hence increasing its value.

To combine the best of both projects, Digix has recently partnered with Maker to deliver the best stablecoin to the blockchain ecosystem, in this way, the Dai Stablecoin backed by Digix Gold tokens (DGX) as collateral.

At the time of writing this article, Maker has a price of $576 per coin with a market capitalization of $576 million. Moreover, the digital currency is the 22nd largest in the world.

ENJOY TRADING WITH COINBASE

During the last years, CryptStorm has been writing different new, guides and information about virtual currencies and blockchain companies. One of the most popular is Coinbase.

Coinbase is one of the best trading platforms to start trading digital assets for cash around the world. No matter where you are, Coinbase would have an exclusive offer for you.