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Maker (MKR)

Maker - MKR Maker
1341.2664 USD
▲ 0.07 %
1h Change
▲ 0.07 %
MKR / USD - 1h change
24h Change
▲ 3.11 %
MKR / USD - 1d change
1w Change
▲ 7.59 %
MKR / USD - 1w change
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Maker
Maker (MKR)
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Maker (MKR) is a governance token for the MakerDAO and Maker Protocol, which powers the decentralized stablecoin DAI. MakerDAO allows users to create DAI by locking up collateral in smart contracts, enabling decentralized lending without intermediaries. MKR holders participate in governance decisions, ensuring the system remains stable and secure.

Table of content

Who Founded Maker?

Who Founded Maker?

Maker was founded by Rune Christensen in 2015. The Maker Protocol became one of the earliest and most influential DeFi projects, bringing decentralized stablecoins to the Ethereum blockchain.

What Makes Maker Unique?

Maker stands out due to its decentralized governance and stability mechanism. Key advantages include:

  • Decentralized Stablecoin (DAI) – Users can generate DAI by depositing collateral such as ETH, USDC, or other assets.
  • Collateralized Debt Positions (CDPs) – Users lock collateral in smart contracts to mint DAI, creating a decentralized lending system.
  • Governance by MKR Holders – MKR holders vote on system parameters, including interest rates and risk management.
  • Supply Control Mechanism – MKR is burned when fees are paid, reducing total supply and adding a deflationary aspect.

What is MKR Used For?

MKR has multiple uses within the Maker ecosystem:

  • Governance – MKR holders vote on protocol upgrades, stability fees, and collateral types.
  • Risk Management – MKR is used to recapitalize the system if a debt shortfall occurs.
  • Fee Payments – Stability fees (interest) from borrowing DAI are paid in MKR and burned to reduce supply.
  • Decentralized Finance (DeFi) – Maker is integrated into DeFi platforms for lending, staking, and financial applications.

Maker Network Security

Maker operates on Ethereum and relies on decentralized governance, smart contracts, and over-collateralization to maintain system security. The Peg Stability Module (PSM) helps keep DAI’s value close to $1 USD, ensuring stability.

How to Buy MKR?

Buying MKR follows these steps:

  1. Choose an Exchange – MKR is available on Binance, Coinbase, Kraken, and Uniswap.
  2. Create an Account – Sign up, verify identity, and enable security settings.
  3. Deposit Funds – Use fiat currency or cryptocurrency to fund your account.
  4. Make the Purchase – Search for MKR, select a trading pair, and place an order.
  5. Store Securely – Transfer MKR to a crypto wallet for security.

How to Earn MKR?

MKR cannot be mined. Instead, users can earn MKR by:

  • Participating in Governance – Engaging in MakerDAO voting.
  • Providing Liquidity – Supplying MKR or DAI to DeFi pools.
  • Holding DAI – Some platforms offer MKR as rewards for holding or using DAI.

MKR Historical Price

MKR’s price has fluctuated based on governance decisions, DeFi growth, and demand for DAI. Tracking historical price data can provide insights into its long-term performance.

MKR to Local Currency

The price of MKR can be converted into fiat currencies such as USD, EUR, and GBP. Live exchange rates are available on cryptocurrency tracking platforms.

FAQs About MKR

Can I mine Maker (MKR)?

No, MKR cannot be mined. Instead, it is earned or purchased through exchanges and DeFi platforms.

Is Maker a good investment?

Maker is a key part of the DeFi ecosystem, offering decentralized lending and governance.

Where can I store MKR safely?

MKR can be stored in hardware wallets like Ledger and Trezor or software wallets such as MetaMask and Trust Wallet.

How does Maker maintain DAI’s stability?

Maker uses an over-collateralized model where users deposit crypto assets to back DAI.

What happens if Maker Protocol faces a shortfall?

If the system experiences a shortfall, new MKR tokens are minted and sold to cover the deficit, maintaining protocol stability.

How does Maker governance work?

MKR holders vote on decisions like interest rates, new collateral types, and risk management, ensuring decentralized control of the Maker Protocol.

  • Updated 2025-04-01 07:58:31