{"id":6031,"date":"2020-10-02T12:43:06","date_gmt":"2020-10-02T07:13:06","guid":{"rendered":"https:\/\/zebpay.com\/?p=6031"},"modified":"2020-10-02T12:43:06","modified_gmt":"2020-10-02T07:13:06","slug":"makerdao-governing-stability-in-the-crypto-economy","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/makerdao-governing-stability-in-the-crypto-economy","title":{"rendered":"MakerDAO: Governing Stability in the Crypto Economy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/makerdao-governing-stability-in-the-crypto-economy\/#What_is_dai\" title=\"What is dai?\">What is dai?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/makerdao-governing-stability-in-the-crypto-economy\/#So_if_dai_is_money_what_does_that_make_MKR\" title=\"So, if dai is money, what does that make MKR?\">So, if dai is money, what does that make MKR?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The <a href=\"https:\/\/zebpay.com\/in\/buy-cryptos\/\" target=\"_blank\" rel=\"noreferrer noopener\">cryptocurrency<\/a> economy is characterized by its volatility, with coin prices surging up and down in the blink of an eye. MakerDAO intends to change that, by introducing a new degree of stability to the marketplace.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"538\" src=\"https:\/\/zebpay.com\/wp-content\/uploads\/2020\/09\/blog-banner-1024x538.png\" alt=\"\" class=\"wp-image-6035\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2020\/09\/blog-banner-1024x538.png 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2020\/09\/blog-banner-300x158.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2020\/09\/blog-banner-768x403.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2020\/09\/blog-banner.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><a href=\"https:\/\/zebpay.com\/in\/buy-dai\/\" target=\"_blank\" rel=\"noreferrer noopener\">MakerDAO<\/a> believes that a decentralized stablecoin is required to have anyone fully realize the advantages of digital money. Their solution, the Maker Protocol employs a two-token system to achieve this vision:<\/p>\n\n\n\n<ol class=\"data-collection\"><li>Dai (DAI) &#8211; A collateral-backed stablecoin that offers stability in itself.<\/li><li>MKR (MKR)&nbsp; &#8211; A governance token, used to maintain the protocol and manage Dai<\/li><\/ol>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"data-collection wp-block-heading\" id=\"h-what-is-dai\"><span class=\"ez-toc-section\" id=\"What_is_dai\"><\/span>What is dai?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><a href=\"https:\/\/zebpay.com\/in\/buy-dai\/\" target=\"_blank\" rel=\"noreferrer noopener\">DAI<\/a> is an ERC20 token on the Ethereum blockchain, pegged to the US dollar, so that 1 DAI = 1 USD. Dai is the currency used for money lending on MakerDAO. When you take out a loan, Dai is created. When you pay it back, it\u2019s destroyed. Dai can be backed by multiple collateral assets, including Ethereum and Basic Attention Token (BAT).<\/p>\n\n\n\n<p>There are two fundamental differences between dai and other stablecoins such as Tether (USDT).<\/p>\n\n\n\n<p class=\"data-collection\">First, dai is not backed by fiat reserves held in a bank like its other stablecoin counterparts. Second, dai\u2019s transparency can be seen on the blockchain at all times, as opposed to needing an audit to verify its position.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-so-if-dai-is-money-what-does-that-make-mkr\"><span class=\"ez-toc-section\" id=\"So_if_dai_is_money_what_does_that_make_MKR\"><\/span>So, if dai is money, what does that make MKR?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>The Maker Protocol is governed democratically, and MKR allows those who hold it to vote on changes to the protocol itself.&nbsp;<\/p>\n\n\n\n<p>In practice, this means that if you <a href=\"\/blog\/trade-analysis-mkr-and-dai\/\" target=\"_blank\" rel=\"noreferrer noopener\">hold MKR<\/a>, you have the power to decide key parameters of the protocol. These parameters include stability fee rates, the types of collateral which back dai, and their rates.<\/p>\n\n\n\n<p>As an MKR holder, your vote can decide to:<\/p>\n\n\n\n<ul><li>Add a\u200b \u200bnew\u200b \u200bcollateral asset \u200btype<\/li><li>Change the risk parameters of one or more existing collateral asset types, or add new parameters to one or more existing collateral asset types.<\/li><li>Modify\u200b \u200bthe Dai Savings Rate.<\/li><li>Choose the set of Oracle Feeds.<\/li><li>Choose the set of Emergency Oracles.<\/li><li>Trigger Emergency Shutdown.<\/li><li>Upgrade the system.<\/li><\/ul>\n\n\n\n<p>Learn more about the project and its governance <a rel=\"noreferrer noopener\" href=\"https:\/\/makerdao.com\/en\/whitepaper#abstract\" target=\"_blank\">here<\/a>.<\/p>\n\n\n\n<p>Sounds interesting? Head to <a href=\"https:\/\/zebpay.com\/in\">ZebPay<\/a> and start trading!<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-dots\"\/>\n","protected":false},"excerpt":{"rendered":"<p>The cryptocurrency economy is characterized by its volatility, with coin prices surging up and down in the blink of an eye. MakerDAO intends to change that, by introducing a new degree of stability to the marketplace. MakerDAO believes that a decentralized stablecoin is required to have anyone fully realize the advantages of digital money. Their [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[79,76,90,91,92,84],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/6031"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=6031"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/6031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/6035"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=6031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=6031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=6031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}