What does Maker do?
Maker (CRYPTO:MKR) is a decentralized autonomous organization (DAO) that operates the Maker Protocol, a suite of smart contracts that enable the issuance and management of Dai, a stablecoin pegged to the US dollar. MakerDAO is governed by MKR, a utility token that allows holders to vote on proposals and earn rewards.
The Maker Protocol is powered by a network of participants called Maker Vaults. Maker Vaults are smart contracts that allow users to deposit collateral, such as ETH, and borrow Dai against it. The collateralization ratio, which is the value of the collateral divided by the amount of Dai borrowed, must be maintained above a certain level to avoid liquidation.
MakerDAO is committed to maintaining the stability of the Dai peg. The Dai Stability Module (PSM) is a mechanism that helps to keep the Dai peg stable by buying and selling Dai in response to changes in the market price.
