MakerDAO – Ethereum's Best DeFi Platform?

This happens every weekend. In every country, in every corner of the world, we gather with friends and try to figure out the bill at the end of the night.

What if you could sort it out in an instant?

“I’m transferring 30 Dai over to you now. Does that work?” You ask your friend.

“Yeah, for sure. Easy.” She replies.

What just happened?

You paid your portion of the tab in Dai, a decentralized stablecoin that is equal to one US dollar.

You gave your friend thirty bucks.

DeFi is vast. It’s an ever-evolving landscape. Sometimes, the companies that have been around for a while work well. They’re efficient and make sense. MakerDAOis one of those companies.

Maker what?

I know, there’s so much to learn about decentralized finance. It can be overwhelming. The industry is changing at the speed of light, and people may want to write it off because they don’t want to put the effort in to learn it.

This is a mistake.

A small amount of time invested now will serve you well. In three years, you’ll be thanking yourself for the reading you’re doing today.

First things first, DAO stands for decentralized autonomous organization. It’s a company on the Ethereum blockchain, and the power resides with all the users. There is no central authority, and the community makes the decisions.

This is cool.

Now you have total control over your money, my friend. You can make things happen in an instant.

People are taking charge of their money, not governments. Inflation isn’t going to knock you on your face and take your earnings.

“Stability brings prosperity.” – Mariano Conti, former head of smart contracts at MakerDAO.

Conti understands the importance of owning what you earn. His background includes working freelance jobs in Argentina, where the government would resort to hyperinflation and freezing assets. He was one of the first people to take his salary in Bitcoin because he recognized the value.

Conti has first-hand knowledge of the damage a government can do to your hard-earned money. That could be a distant memory now that MakerDAO’s stable coin, Dai, can be used by everyone. The currency is decentralized and unbiased. It enables financial activities and applications that were not possible previously due to the volatility of other cryptocurrencies.

“You pair stability with decentralization and transparency, and you get an unstoppable economy.” – Conti.

The way the MarkerDAO regulates Dai is complex. They have smart contracts that manage borrowing and lending. Two currencies, Dai and MKR, regulate the value of the loans. In other words, these people are on top of it. They’ve developed a complex system to soft-peg Dai to the US dollar.

Their market cap is, as of today, over $9 billion. They’re in it to win it.

The Ethereum blockchain has unlimited potential. MarkerDAO was one of the first companies to get this. They went to work and now, four years later, have a stable coin that is entirely decentralized and is equal to one dollar.

Is MarkerDAO Ethereum’s best DeFi platform?

They have a lot to be excited about, which means that you do too.

The next round, we’ll toast to Dai!

Leave a Reply

Your email address will not be published.

Related Articles
Read More

Beaver Finance Offers Hedges With Yield Farming

Beaver Finance is a pioneer in its offerings. It is the first DeFi platform to offer liquidity mining. This is under its hedging solution for Impermanent Loss. The platform features a single asset Automate Yield Farming. The platform also contains an Engine for Asset Allocation....
Read More

DeFi Risks Explained – It Runs Deeper Than Bad Coding

The adjusted total value locked in DeFi smart contracts has grown to $80 billion from $8 billion in one year. In traditional finance, there's always an intermediary. If an entity acts fraudulently, it is possible to prosecute them. There are also the regulators enforcing risk...
Read More

NFTs Enthusiasts Migrate From Ethereum To Tezos

Many artists and content creators are moving to Tezos to launch, buy, and trade NFTs (Non-Fungible Tokens) as Ethereum’s fees are becoming a problem. 90% of NFT minting happens in Ethereum, and as NFTs become more popular, the Ethereum network has seen a considerable amount...
Total
0
Share