Maker MKR Price

What is Maker (MKR)?

Maker (MKR) is a governance token of the MakerDAO ecosystem, which operates on the Ethereum blockchain. It is integral to the Maker Protocol, which allows users to generate Dai, a decentralized stablecoin pegged to the US dollar. MKR holders participate in the governance of the protocol by voting on key decisions, such as risk parameters and collateral types, which directly affect the stability and functionality of the Maker ecosystem. As of early 2024, the total supply of MKR is approximately 1 million tokens, with a circulating supply of around 900,000 tokens.

Who are the Founders of Maker?

Maker was co-founded by Rune Christensen in 2015. Rune is a prominent figure in the decentralized finance (DeFi) space and has played a significant role in the development and scaling of the Maker Protocol. Other key contributors to the project include a diverse team of developers and advisors from various backgrounds in finance, technology, and blockchain, although specific names of co-founders are not widely publicized.

How does Maker Work?

The Maker Protocol allows users to create Dai by locking up collateral, typically in the form of Ethereum or other approved assets, into a smart contract. This process is known as collateralized debt position (CDP). Users can borrow Dai up to a certain percentage of the collateral's value, known as the collateralization ratio, which is typically set at 150% or higher to ensure stability. If the value of the collateral falls below the required ratio, the position may be liquidated to maintain the system's integrity. MKR tokens are used for governance and can be minted or burned to stabilize the Dai supply based on market conditions.

Top Use Cases of Maker

1. Decentralized Stablecoin: Dai provides a stable value for users in the volatile crypto market, allowing them to transact without the risk of price fluctuations.

2. Leverage Trading: Users can borrow Dai against their crypto assets to gain exposure to more significant positions without selling their collateral.

3. Decentralized Finance (DeFi) Applications: Dai is widely used across various DeFi platforms for lending, borrowing, and trading, making it a foundational stablecoin in the ecosystem.

4. Hedging against Ethereum Volatility: Investors can lock their ETH in Maker to access stable liquidity without selling their holdings.

5. Governance Participation: MKR holders can vote on protocol upgrades, risk parameters, and other governance matters, influencing the future direction of the Maker ecosystem.

How to Keep your Maker Safe?

1. Use Hardware Wallets: Store your MKR tokens in hardware wallets like Ledger or Trezor for enhanced security against hacks and malware.

2. Enable Two-Factor Authentication (2FA): Use exchanges and platforms that offer 2FA to add an extra layer of security to your accounts.

3. Keep Software Updated: Regularly update your wallet software and devices to protect against vulnerabilities.

4. Be Wary of Phishing Scams: Always verify the authenticity of websites and communications before sharing personal information or private keys.

5. Diversify Storage: Consider dividing your MKR holdings across multiple wallets to reduce risk in case of a security breach.