Author: changehero
May 26, 2021

2020 has been the year DeFi rose to prominence but many projects blazed the trail for its rise long before. MakerDAO is one of these projects, spearheading an algorithmic stablecoin DAI and governance token MKR since 2015. In this article, the ChangeHero team will give a Maker price prediction 2021 and the future, based on […]

Maker Price Prediction 2021, 2025 and 2030

2020 has been the year DeFi rose to prominence but many projects blazed the trail for its rise long before. MakerDAO is one of these projects, spearheading an algorithmic stablecoin DAI and governance token MKR since 2015. In this article, the ChangeHero team will give a Maker price prediction 2021 and the future, based on its history, news and fundamentals.

Maker Price Prediction 2021–2030

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  • MKR forecasts are split on whether it can reclaim the ATH in 2021;
  • In the future, MKR can rise over $10,000 as soon as in 2022;
  • Some forecasts go as far as to predict MKR over $100 thousand in 2030.

What are Maker and MKR?

Maker logo
Source: Publish0x

Maker can refer to Maker Protocol or MakerDAO, software application or the governing decentralized autonomous organization (DAO) on Ethereum blockchain. Both protocol and the DAO overlook the algorithmic stablecoin DAI, backed by the crypto collateral rather than fiat reserves.
Maker (MKR) is the name of the governance token of this platform. MKR holders can participate in voting on protocol changes or even initiate emergency measures to keep the collateral balanced. MKR can be sold to replenish the collateral, so the holders are incentivized to make changes responsibly.
If you need more information on how it works, take some time to read our Beginner’s guide to Maker!

MKR Price History

Maker Price in 2017–2019

Maker Price in 2017–2019
Source: CoinMarketCap

MKR token launched in December 2017. Due to having a working protocol in place, investors highly evaluated it to be worth $1,690.19 on January 20, 2018. However, after that, the crypto market entered a deep correction.
Throughout 2018 MKR was trading sideways between $500 at lows and $1,100 at local highs. In 2019, the opening price was $448 and it closed at $430, continuing the consolidation.

Maker Price in 2020–2021

Maker Price in 2020–2021
Source: CoinMarketCap

2020 started with an uptrend, having opened at $437 and climbing to $635 in Q1. The global COVID-19 pandemic caused all markets, including cryptocurrencies, to collapse, and MKR bottomed at $275. From there on, it entered first recovery and then a long-term uptrend.
Early in 2021, which started with MKR at $586.96, it skyrocketed to the first local high at $1,858. Next, in early February, it was already worth $2,859. After correcting to ~$2,100, it consolidated and shot up to the current ATH on May 3, 2021: $6,339.
At the time of publishing, MKR price is $3,742.64 and the currency ranks 31st on CoinMarketCap. Maker Protocol has $8.58B in total value locked according to DeFi Pulse, and it ranks first.

What influences the price of MKR?

Protocol Development

The Maker Foundation, which used to be responsible for the development of MakerDAO, is now in the process of dissolving. From now on, the reins of governing the protocol belong solely to the community and MKR holders. Which is why MKR was able to boost up to $6,000 three weeks ago. Not only the token appreciated but also the total value locked in Maker reached $12B, another record figure.

Adoption Prospects

Maker, as one of the oldest DeFi projects, stood the test of time enough to garner attention from financial institutions. In the most recent Citibank report titled “Future of Money: Crypto, CBDCs and 21st Century Cash”, the bank explores and explains DeFi and Maker in particular.
Banks have not given much regard to the DeFi sector until 2020, when it truly came to light. In late 2020, reports of research by federal reserve banks made it clear that traditional finance is interested in the instruments DeFi has to offer.

Ethereum’s Development

While it does not influence the price of Maker token directly, usability and throughput of the Ethereum network definitely affect it. At the moment, Ethereum 2.0 is accumulating validators to make the network secure, and the current implementation has a few upgrades in store. For example, the much discussed EIP-1559, which will introduce the fee burn and make fees more predictable, set to arrive in July.

MKR News from Twitter


Maker coin news from the past few days report on the unusual price surges amidst the market-wide dip. While the prices of most cryptocurrencies bounced from local support, MKR simply rebounded and surged 101% in a day.


Trader @emanesmaeli points at the bullish divergence flag formed by the MKRUSD chart. Their target? No less than $9 thousand!


Maker community includes members from all over the world. In this post, Africa Blockchain Institute founder shared his note and mutual appreciation for collaborating with this global project.

MKR Price prediction 2021

Coinpedia Maker Price prediction 2021: $6,500–7,354

Coinpedia authors believe the Maker price will continue the upward trend it started in 2021. It probably won’t repeat the meteoric rise from $598 to $6,339 but MKR can revisit the ATH again. Moreover, it is still possible to beat it and score a record at $7,354.

Gov.capital Maker Price prediction 2021: $3,067–4,193

Maker price prediction 2021
Source: Gov.capital

Gov.capital forecast implies that for the rest of 2021 MKR will stay in consolidation. In December 2021, the maximum expected price can reach $4,193, and the minimum expected price — $3,067. Even though they expect 2022 to open at a low price of $654, the trend will continue.

WalletInvestor Maker Price prediction 2021: $4,590.22

WalletInvestor evaluates MKR as a great investment long-term but is neutral on whether it is worth buying it for the short term. They still expect it to yield some return, as by the end of 2021 it is forecasted to end up somewhere between $4,105.61 and $5,082.23.

Maker Price prediction 2022–2024

CryptoNewsZ MKR price prediction: $9,400–11,500 in 2022

Analysts at CryptoNewsZ have no doubts that in the future Maker protocol will keep finding new applications. And so, the price of its governance token will grow from $9,500 in 2022 to $11,500 closing price.

Gov.capital 2023 Maker coin price prediction: $3,660–9,212

The prediction by Gov.capital doesn’t operate on the premise that MKR price will only go up. In 2023, volatility aside, MKR price will add another couple thousand dollars and end up at $6,836. 

DigitalCoinPrice Maker price prediction: $7,827–9,914 in 2024

Maker price prediction 2024
Source: DigitalCoinPrice

Another algorithmic forecast, from DigitalCoinPrice, paints a similar picture: even with volatility, the price will move up. In 2024 in particular, highs at $9,914 and lows at $7,827 are expected.

Maker Price prediction 2025

DigitalCoinPrice MKR Price prediction: $10,081.81

Following the previous four years, MKR price will climb close and above $10 thousand. In fact, the average year price will come up to $10,081, according to this forecast. Lowest average monthly price is expected in May 2025, $8,872 and the highest — in August, $11,799.

CryptoNewsZ Maker Price Forecast: $16,500

In the best case scenario, if Maker stays at the forefront of DeFi and becomes a top cryptocurrency, it could reach $16,500. A lot can change in five years, so we will have to wait and see.

Coinpedia MKR Forecast: $5,500–20,000

As for the more distant future, the Coinpedia experts do not rule out the bearish scenario. In that case, it might be worth even less than now, $5,500. However, if all goes well, MKR will rally to $20,000 and even more.

Maker Price prediction 2030

It is near impossible to say where the cryptocurrency market will end up in a decade. What will the regulation be, which projects stay and which go? But if business goes as usual, CryptocurrencyPricePrediction projects that MKR can keep growing to $108,180.22 and even $143,649.15.

ChangeHero MKR Price prediction

Maker protocol is potentially one of the DeFi instruments that could be of most interest to the traditional financial institutions. At the same time, it is now as decentralized and community-governed as it has ever been. The Maker token is instrumental in the development of the protocol now, so the demand for it will only grow.
With that in mind, it is safe to assume that MKR is still undervalued and can reach $10,000 in five years easily. As for 2021, we will have to see if the rebounds stick and propel the price to a new ATH.

How to get MKR on ChangeHero?

Now that you know more about all things Maker, you can still easily get in while it’s early with ChangeHero!

  1. Choose the currencies on the home page, amounts and the type of exchange. Provide your wallet address in the next step and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
  4. All done? Now we are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives. 

The Best Rate transactions will use the rate current to the time when your funds arrive.
The Fixed Rate will use the rate at the time of step 1;

  1. As soon as the exchange has been processed, your MKR is on the way to your wallet. 

The customer support is available any time, any day in the chat on the website or through the email: [email protected]

Conclusion

Maker Protocol is a prime example of how DeFi can be accessible and faithful to the ideals of crypto. Now that their governance is fully decentralized, MKR is the most important asset in that ecosystem.
We hope you enjoyed this article, make sure to check out more similar articles from our blog! If you want fresh updates on a daily basis, why not sign up to our Twitter, subreddit, Facebook and Telegram?

Frequently Asked Questions

How to buy MKR?

You can buy MKR with other cryptocurrencies on ChangeHero without signing up. Choose a pair and rate, provide your addresses and send a single transaction to a designated address.

What will MKR be worth in 2025?

According to some forecasts, MKR token can be worth anywhere between $5,500 to 20,000.

Is Maker a good investment 2021?

Most experts agree that Maker is a great investment that will return profit in both short and long-term.

Why is MKR coin going up?

The Maker Foundation, which overlooked development of the Maker Protocol, transferred all power to the community and MKR holders on May 3. The decentralization of the protocol is now complete, meanwhile financial institutions are researching it and Maker is the leading DeFi protocol by TVL. All these factors contribute to MKR growing independently in the dipping market.

Is Maker a good crypto?

Maker has a good reputation as a cryptocurrency and in DeFi alike for being a long-standing legitimate project.


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Disclaimer

This article is not a piece of financial advice. No price prediction is guaranteed to provide exact information on the future price. 
When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.

Author: changehero
September 8, 2020

Many DeFi staples originated in MakerDAO protocol: governance tokens or algorithmic stablecoins. In our MKR guide, we’re going to explain Maker protocol and answer what makes Maker stand out.

MKR guide by ChangeHero

Many DeFi staples originated in MakerDAO protocol: take governance tokens and algorithmic stablecoins. In our MKR guide, we’re going to explain the Maker protocol and answer what makes Maker stand out.

What is MakerDAO?

MakerDAO logo.
Source: bitcoinwiki

At the very core of new economic systems envisioned by cryptocurrencies are the values of decentralization and accessibility. Bitcoin sprang from frustration caused by the outdated centralized financial system, as the message embedded into its genesis (the very first) block references the Fed bailout for the banks in the financial crisis of 2008.

BTC managed to establish a market around it, but did not become an effective means of value transfer due to its volatility. That’s when stablecoins entered the scene. However, most stablecoins that found a significant degree of adoption, like Tether, lacked decentralization.

MakerDAO exists to solve these problems: it is an open-source project on the Ethereum blockchain and a Decentralized Autonomous Organization with the same name. It was created in 2014 with the goal to bring an economic ecosystem powered by a currency that would be truly decentralized and stable.

MakerDAO Timeline and Team

MakerDAO’s history starts in 2014, and in 2015 its global team of developers began building the ecosystem. In December 2017, they published the first whitepaper, introducing the Sai (then Dai) Stablecoin System.

In this iteration of the project, the full name of Dai was Single-Collateral Dai (SCD), because the system accepted only ETH as a collateral. Using ETH in this way, any participant could generate SCD through a complex system of smart contracts.

The initial iteration of the system included the foundation for the multi-collateral system that exists now. In November 2019, the whole system was updated to the current Maker protocol that is powered by DAI.

The Maker Foundation built and launched MakerDAO. Now they are but a part of the global community and do not have exclusive governance rights over the protocol anymore.

The board of Maker Foundation includes Rune Christensen, CEO and founder, Steven Becker, COO and President, and Andy Milenius, CTO. The Dai Foundation, based in Copenhagen, Denmark manages trademarks and code copyrights.

How does MakerDAO work?

In short, MakerDAO offers lending in the stablecoin called Dai. By depositing a supported Ethereum token into a Maker Vault, a user generates a loan represented in DAI, which starts accruing interest. Upon reclaiming the deposited assets, they repay the Vault in the borrowed sum with the accrued fees.

Actors in the Maker protocol.
Source: docs.makerdao.com

Users represent Dai holders that generate DAI via Maker Vaults. Governors are the participants that have an extensive knowledge of the Maker protocol and help in making key decisions. Maintainers are the businesses and other participants that use the Maker protocol in their platforms or products, as well as keepers who help maintain the Dai peg, and decentralized oracle structure governed by MKR holders.

What is MKR?

Maker (MKR) is a governance token in the MakerDAO system. It represents the voting power of a network participant and entitles them to participate in making decisions that will affect the network. Anyone can submit an improvement proposal, but it’s the MKR token holders who get to vote. 

In addition, recapitalization of the protocol also uses MKR and if debt exceeds the surplus, MKR is auctioned off. This is how it helps maintain the stable peg of Dai. Therefore, it is in the interest of MKR and DAI holders to govern the protocol in a way that will not hurt their MKR holdings.

Anyone can purchase the voting rights in the form of the Maker tokens on an open market. Keep reading to learn how.

What is Dai?

DAI is a stablecoin with a soft peg to US Dollar. In simpler terms, its price is always roughly equal to $1, but its value is not backed by the US Dollar itself.

In DAI’s case, the cryptocurrencies locked into the Maker protocol as the collateral back Dai’s value up. The smart contracts can mint more MKR tokens or burn them to keep the value of Dai stable. 

The currencies in the Vault over-collateralize the “debt” represented by the DAI total supply. Think of it like a mortgage: the bank provides a loan in return for ownership rights, and to reclaim the ownership, a taker has to repay the debt and fee.

Comparison with Similar Projects: Aave and Compound

The Maker Protocol earned significant adoption as one of the first decentralized finance (DeFi) applications. For the longest time, Maker has had the most assets locked in it according to the DeFi Pulse analytical service.

If we compare the Maker system to other largest lending protocols, Aave and Compound, we can see that:

  • In Maker, users can only generate Dai to borrow. In Compound users borrow tokens from its 9 markets, in Aave — 20;
  • Collateral portfolio is different across all platforms. Aave supports 20 tokens, Compound — 9, Maker — 12;
  • Dai Savings Rate smart contract lets users generate DAI interest on tokens locked into the contract through stability fees. In Compound and Aave the liquidity supply generates the interest;
  • Neither Aave nor Compound have their own stablecoins.

How to use MKR?

The whitepaper describes possible uses for the Maker protocol as following:

  • Issuance and maintenance of the Dai stablecoin. Borrowed Dai can be used as digital dollar;
  • Asset expansion: it is quite possible that the community will be able to use the Maker system to issue alternative assets similar to Dai;
  • Decentralized oracle network akin to Chainlink.

The primary use case for MKR token itself is to influence these broad development directions. To pay the outstanding stability fee on a Dai debt closing, along with Dai itself users can opt for MKR.

Is MakerDAO Controversial?

The overly complex architecture and economic model of MakerDAO and DAI received criticism in the past. The Maker token specifically, its value is entirely dependent on the Maker system, but the stability of a decentralized lending system and stablecoin were doubted by some industry experts more than once.

In fact, in 2020, the MKR news reported that Maker and DAI holders were considering an emergency shutdown in the face of a $4 million debt. It arose as a result of a technical error which coincided with a period of Ethereum network congestion and a sudden crash of the market prices. The community had to hold an emergency vote on a variety of changes to the protocol to help the project stay afloat.

Future plans of Maker

Governance will decide on a ton of stuff ranging from day-to-day management of the system to key decisions on larger upgrades or system changes if they are needed. The governance of the Maker system is now set up in such a way that MakerDAO basically runs itself. In the long run, this should drive the demand for MKR tokens as well.

The active Maker Improvement Proposals are discussed on the MakerDAO forum. Among the most discussed are onboarding of Keep3r Network as a collateral, improved proposal process and distributing tasks among teams. Most of these are aimed at both ensuring sustainability of the protocol in the long run and realizing its potential.

MakerDAO on Twitter

Let’s have a look at what the Twitter users discuss at the time of writing this Maker coin guide.

Just a snippet of a day in the MakerDAO: the community voted to add a new type of collateral, rETH.

User will wrote a whole thread outlining a bullish case for the MKR token.

Even in 2022, Maker remains at the top of the Ethereum ecosystem. Its total value locked is almost twice the TVL of a runner-up, Lido.

How to store MKR?

Maker (MKR) and Dai are ERC-20 tokens, so a range of the wallets in which it can be stored is rather wide. We have a couple of recommendations for you:

  • Hardware wallet — Trezor;
  • Software — Exodus, available on desktop and mobile.

With these wallets you will never have to worry about how to exchange MKR again: their interfaces have built-in crypto-to-crypto exchange functionality. Just exchange some of your crypto on the go in these wallets using ChangeHero!

How to exchange MKR?

Puzzled how to exchange MKR on ChangeHero? Here is the Maker coin guide that can help you:

  1. Choose the currencies on the home page, amounts and the type of exchange (Best or Fixed rate). Provide your MKR wallet address in the next step and adjust the transaction details if needed;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction your crypto assets for the exchange. For Fixed Rate transactions you have 15 minutes before it expires;
  4. Sit back and relax. From now on we will be handling everything: checking the incoming transaction and doing the exchange as soon as it arrives;
  5. As soon as the exchange has been processed, your MKR is on the way to your wallet.

If you ever run into any issues during your swap, our support specialists are always available to help you out in the chat or through the email: [email protected].

Conclusion

MakerDAO is simultaneously a pioneer in DeFi and a trailblazer for all new projects centered around decentralized finance. Through ups and downs, it still provides enough value to amass millions of dollars locked in the protocol.

Hope you enjoyed this MKR guide by our team! Let us know in social media or the comments of our blog and subscribe: we’re on Twitter, Facebook and Telegram.


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Author: changehero
February 11, 2020

In the past, we have witnessed Bitcoin gaining hundreds of dollars in a matter of minutes and also nose-diving at a similar pace. Not only Bitcoin, but there are many other cryptocurrencies whose prices peak and fall. Volatility is one of the biggest hurdles for the masses to integrate crypto into their daily life and […]

Stable Coins: The Best of Both Worlds?

In the past, we have witnessed Bitcoin gaining hundreds of dollars in a matter of minutes and also nose-diving at a similar pace. Not only Bitcoin, but there are many other cryptocurrencies whose prices peak and fall. Volatility is one of the biggest hurdles for the masses to integrate crypto into their daily life and it is hampering the dream of mass adoption. A few are aiming to address this with the introduction of stablecoins and they have had success to a certain extent.

In this post, ChangeHero will introduce you to the concept of stablecoins, their peculiarities and impact on the mass adoption.

Stablecoins

On any given day, the traditional cryptocurrencies, would experience a 10–20% increase or decrease and there are multiple factors contributing to this change. It is very inconvenient for the public to use cryptocurrencies with high volatility for everyday transactions as the price fluctuates every second. Stablecoins are considerably new and resemble the fiat currency that people use for spending every day. This form of digital currency aims to minimize volatility and offer a consistent value irrespective of the factors affecting the cryptocurrency markets. As a means to stabilize the value, stablecoins are backed by a reserve asset. Also, stablecoins function as a safe place for users to store their assets and not worry about the price swings. Usually, these are pegged to U.S. dollar or a commodity or even other cryptocurrencies.

Fiat-collateralized

Tether logo

Tether was the first stablecoin available to the users for trading in 2015. It was built on the Omnichain protocol and pegged to the USD at a 1:1 ratio which means that 1 USDT token will always be equal to $1, theoretically. In terms of the use case, it bridges the gap between the cryptocurrencies and fiat along with providing stability, transparency and security. Most often, we see traders selling off their assets to USDT on exchanges before withdrawing to protect their profits. With a market cap of over $4 Billion, it is one of the most valuable cryptocurrencies in the market, at the moment. It is completely dominant in the stablecoins’ market and operates on various chains such as Ethereum, Tron, EOSIO and Liquid. Tether is well established in the market and integrated into all the top exchanges. Despite the wide usage, its centralized nature is criticized often and has a history of hacks.

TrueUSD is another popular fiat-collateralized stablecoin. It is the first ERC-20 token fully backed by USD and raised an impressive $20 million in 2018. The token stands out from the rest in terms of transparency and discloses the details of escrow accounts daily. There are also a ton of other similar projects such as Gemini USD, Paxos Standard and USDCoin in the market.

Crypto-collateralized

DAI logo

MakerDAO is another name often heard in the stablecoins’ market. The project is well-known for its off-beat approach to stabilizing the currency. Unlike Tether, DAI is crypto collateralized and backed by ETH. It is one of the first stablecoins to be completely decentralized. Each DAI token will be equal to $1 and the platform uses CDP (Collateralized Debt Position) smart contracts to lend DAI to the users. In late 2019, MakerDAO introduced multi-collateral DAI adding support to BAT initially and other tokens may also join the club in future. The single collateral coin was renamed as SAI while the new multi-collateral asset took the name DAI. Though the project is applauded for its autonomous and decentralized nature, its stability fees structure has always been a controversy.

Algorithmic

These kinds of stablecoins attempt to maintain stability in the value of the cryptocurrency through algorithms. Basecoin is one such stablecoin which was announced back in 2017 pegged to the USD. The stability of the price was planned to be maintained through a consensus mechanism in which the supply of the tokens is adjusted according to the exchange rate between the coin and its peg. The approach is similar to the Central Banks and was criticized by many in the crypto community. Though the project gained a good amount of initial funding, later it went into exile and is nowhere to be heard of in 2020.

Best of both worlds? Not yet!

Stability, Scalability, Privacy and Decentralization are the vital characteristics of a cryptocurrency which the whole community dreams about. Stablecoins do cater the consumers with stability, but fall short in the rest, especially in the decentralization due to the involvement of third parties. On a closer look, all these stablecoins are being used as a stop-loss tool. Traders simply exchange their crypto to stablecoins in order to avoid the loss of profits due to volatility. In a nutshell, stablecoins are far from delivering the best of both worlds, at least for now.

Mass adoption would be possible only when an average person is able to use a cryptocurrency on a daily basis, but stablecoin usage is not seen often in such scenarios. This is mostly due to the lack of awareness of the existence and the benefits of stablecoins in public. We have been hearing news about JP Morgan and IBM releasing their own stable cryptocurrency. Moreover, the topic of stablecoins cannot be concluded without mentioning Facebook Libra’s hard times. Though these projects contradict the true nature of decentralization, they would fuel the awareness of stablecoins and ultimately lead to mass adoption.

On ChangeHero you can exchange USDT, USDC and TUSD with all the popular cryptocurrencies at the best rates. You can instantly swap your crypto assets to stablecoins without any registration or logins. Do give it a shot!

Bookmark ChangeHero Blog, we publish interesting content on crypto and blockchain. Follow us on TwitterFacebookReddit, Telegram and be the first to get notified.


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Author: changehero
June 4, 2019

From the beginning of June, ChangeHero platform will support Crypto-to-DAI and Fiat-to-DAI transactions. It is great news for the ChangeHero community and we believe — for the Dai community as well. Now DAI — the first stablecoin based on Ethereum blockchain can be bought with a credit card and exchanged with 130+ cryptocurrencies on the ChangeHero platform within 15 […]

From the beginning of June, ChangeHero platform will support Crypto-to-DAI and Fiat-to-DAI transactions. It is great news for the ChangeHero community and we believe — for the Dai community as well. Now DAI — the first stablecoin based on Ethereum blockchain can be bought with a credit card and exchanged with 130+ cryptocurrencies on the ChangeHero platform within 15 minutes.

The ChangeHero team is really excited about the DAI integration, so we set a 0% fee on the DAI exchange until the 5th of July! We’ve made a big bet on DAI as one of the most popular stablecoins and expect a large inflow of users from DAI community and crypto enthusiasts on our platform in the near future.

What role does DAI play in the crypto arena? How does it work and how DAI holders could benefit from it? Let’s take an in-depth look below!

DAI logo
Dai — is the first stablecoin based on Ethereum blockchain

The cryptocurrency market has significantly developed during the last years. However, there are a lot of factors that obstruct cryptocurrency pervasion to everyday life, such as sharp price rises and drops during the month, day and even by the hour. For example, the value of BTC often experiences large fluctuations, rising or falling by as much as 25% in a single day and occasionally rising over 300% in a month, what makes Bitcoin and other popular coins and tokens inconvenient payment solutions.

Bitcoin price chart showing fluctuations
Bitcoin rate fluctuation

However, crypto enthusiasts have found out how to make a crypto price stable.

A stablecoin is a cryptocurrency which is pegged to an asset with a stable value, such fiat money, specifically USD, and other assets used as collateral, (cryptocurrencies, metals, oil, etc.) The general idea of a stablecoin is to produce a crypto asset whose value isn’t prone to extreme volatility. With Stablecoins everyone could have a stable store of value during volatile market periods, use a stable cryptocurrency for fast and immutable payments, send large amounts of money with lesser fees. One of the most popular stablecoins is Dai, developed by MakerDAO.

What is MakerDAO?

MakerDAO is a decentralized organization dedicated to bringing stability and transparency to the crypto economy. Maker is unlocking the power of the blockchain for everyone by creating an inclusive platform for economic empowerment — allowing equal access to the global financial marketplace.

Maker issues Dai, the world’s first decentralized stablecoin on the Ethereum blockchain. Dai eliminates volatility through an autonomous system of smart contracts, specifically designed to respond to market dynamics.

Launched in 2017, Dai has successfully maintained a soft peg to the US Dollar. With a presence on numerous cryptocurrency exchanges, multiple partnerships with global supply chain companies, and agreements with organizations serving non-government agencies, Maker is unlocking the power of the blockchain to deliver on the promise of economic empowerment today.

So, what is about Dai?

The Dai stablecoin is a collateral-backed cryptocurrency whose value is stable relative to the US Dollar through a series of complementary financial incentives. Dai aims to realize the full potential of blockchain technology, and unlike other Stablecoins, Dai is completely decentralized.

The currency lives entirely on the blockchain; its stability does not depend on any locality, and its solvency does not depend on any trusted counterparties. All Dai is supported by a surplus of collateral, which has been escrowed into audited and publicly viewable Ethereum smart contracts.

Once generated, Dai can be used in the same manner as any other cryptocurrency: it can be freely sent to others, used as payments for goods and services, or held as long term savings without any fear of losing money because of the price dropdown.

DAI price chart
DAI Price Stability Mechanism keeps the DAI price always equal to 1 USD

How does Dai work?

Every Dai is backed by some kind of valuable asset.

This is achieved via an open smart contract platform that allows anyone in the world to lock up their assets as collateral and issue Dai against them.

To retrieve their collateral, holders simply return the Dai they were issued plus a fee based on how long it was outstanding. No one can alter these core mechanics of Dai, making it a safe and predictable form of money.

How could DAI holders benefit from it?

As DAI stablecoin aggregates the advantages of fiat currency and cryptocurrency, there are a lot of situations, where DAI is the best solution. For example, you can use DAI to:

– save your funds in crypto, without the risk of losses, as DAI price is totally stable and equal to 1 UDS;

– keep your funds in crypto, getting all its advantages and at the same time be sure, that the amount is always the same as the initial, related to UDS;

– fix the profit from your crypto investment in USD, without withdrawing your funds from crypto;

– use DAI as a payment tool;

– trade DAI like other ERC-20 tokens;

– send DAI and receive DAI from anyone by having just by having an Ethereum wallet, etc…

There are a lot more, depending on the individual trader’s needs. Find your own way to use DAI and write it in a comment to this article!

How to get Dai?

Users can obtain Dai on traditional exchanges and instant exchanges, like ChangeHero, where you can buy DAI with the credit card and exchange it with 130+ other crypto at the best rate on the market, anonymous and within 15 minutes.

Get DAI on ChangeHero
ChangeHero set a 0% fee on the DAI exchange until the 5th of July

DAI — is the best way to keep your crypto funds stable. As DAI is a first fully decentralized stablecoin based on Ethereum blockchain, it is easy to trade and store DAI at any ETH wallet, like the other ERC-20 token. DAI Price Stability Mechanism excludes considerable DAI rate fluctuations and keeps the DAI price always equal to 1 USD.

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