Maker (MKR) is one of the ERC-20 tokens native to MakerDAO, the other being DAI. MakerDAO is a decentralized lending platform on the Ethereum blockchain. It allows people to take secured loans by using their crypto assets as collateral. By locking up ETH or some other collateral in Maker’s Vault, you can take out some money in the form of a stablecoin called DAI.
The MKR token serves two functions among many other things— governance and price stability.
The MakerDAO platform, from the name, is a decentralized autonomous organization; thus, decisions are made by the people—holders of the MKR token. The MKR token confers governance rights on all holders and allows them to vote on decisions to move the protocol forward. The decisions, among others, include new collateral options and their risk parameters, stability fees, and debt ceilings.
MKR functions as a counterweight to price volatility by acting as a collateral of the last resort. In cases where the price of the collateral falls too quickly for the DAI credit system to handle, some MKR is created and sold to raise additional collateral. The whole process of minting or burning some MKR token dilutes the system to ensure DAI remains pegged to a dollar.
Following coin prices is always a good idea and YouHodler makes it easy to track the MKR price chart anytime and anywhere.
MKR is an ERC-20 token and can be bought with fiat or other cryptocurrencies on YouHodler.
Earn up to 2.5% APR on your MKR stash. on your MKR. Create an account with YouHodler, deposit MKR, and start earning interest.
You can use your MKR to take a loan in stablecoins Borrow MKR with up to 90% LTV ratio
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