These actions are a part of a fully inspectable system on Ethereum’s blockchain. MakerDAO does this through a dynamic system of Collateralized Debt Positions (CDP), autonomous feedback mechanisms, and incentivized external agents. MKR tokens are also traded on all good exchanges, including Binance and Kucoin, Bittrex and Poloniex. MKR tokens are also used to pay transaction fees on the MakerDAO system and provide holders with voting rights within the network’s continuous approval voting system. The goal is to keep the price of Dai at around $1. MKR tokens are created or destroyed following price fluctuations of DAI. Holders of the MKR token govern the Maker protocol, which are the smart contracts that power the Ethereum-based token Dai. Maker was among the first decentralised governance protocols. MakerDAO serves as a smart contract platform on the Ethereum blockchain that backs and stabilizes the value of their stablecoin DAI. It was first formed in 2015, but they did not launch their stablecoin DAI until 2017. According to Coindesk, MakerDAO’s dominance over other DeFi projects comes in at 27.1% One of the most successful DeFi projects, MakerDAO has over $1 billion in committed assets. MakerDAO (MKR) screenshot provided by Token Metrics In a previous post on this blog, I talked about DeFi and listed these cryptocurrencies without going into details of their technicals, so this time, I decided to go a step further and give you a more in-depth breakdown of the most popular DeFi tokens and coins. The best performing tokens (and coins) in the crypto space are in fact those that work within the area of DeFi, so let’s take a look at what they are and what innovation they offer in this space. ![]() ![]() Since the beginning of 2020, DeFi became the hottest term and it’s featured everywhere: news articles, youtube videos, social media posts… there’s loads of talk about DeFi these days and for a good reason. Instead, you put your trust in computer code, or more precisely, in smart contracts running on (predominantly) the Ethereum blockchain. These can be: earning interest, getting loans, trading synthetic assets, crypto trading, banking and so on without relying on any third-party or intermediary. There’s a lot of buzz surrounding DeFi cryptocurrencies right now and I’m going to give you a quick break down on what they are and their purpose.ĭeFi is short for Decentralised Finance and it’s a pretty broad term, but the key thing is that most of the projects in this space try to recreate financial services in a decentralised manner.
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