Deep Dive into MAKER (MKR)

Emirex Group | Oct 5, 2020 2:44:32 PM

Maker (MKR) is a technology for borrowing, savings, and a stable cryptocurrency. On 16th September, Maker (MKR) was listed for trading on the Emirex exchange. 

Current available trading pair on the Emirex exchange: MKR/USDT, MKR/BTC

  • MakerDao is a decentralized lending facility built on the Ethereum blockchain.
  • MakerDAO is made up of a smart contract service that manages borrowing and lending, as well as two currencies: DAI and MKR to regulate the value of loans.
  • MKR token makes it possible to vote on the evolution of the system, in proportion to the number of tokens each owner has.
  • When a user decides to deposit DAI stablecoins into the Vault and withdraw the collateral, he is also required to pay an interest, or stability fee, to the network.
  • MakerDAO is a part of the "DeFi" movement - a catch-all term for financial tools and services that don't rely on centralized parties to coordinate and control access.

CryptoCurrency Profile

  • Token Standard - ERC-20
  • Maker Price - $545.53 USD
  • Maker ROI - 2,368.60%
  • Market Rank - #34
  • Market Cap - $548,571,338 USD
  • 24 Hour Volume - $51,577,871 USD
  • Circulating Supply - 1,005,577 MKR
  • Total Supply - 1,005,577 MKR
  • All Time High - $1,773.92 USD (Jan 18, 2018)
  • All Time Low - $21.06 USD (Jan 30, 2017)

About Project

MakerDAO is a smart contract platform based on the Ethereum blockchain. The task of the project, built on the principle of the Decentralized Autonomous Organization (DAO), is to create stability in the world of decentralized things. This stability is implemented through DAI, an ERC-20 standard token, which allows it to be used in all the most popular Ethereum wallets (Metamask, Mist, MEW, etc.). Using external market mechanisms and economic incentives, the Maker platform stabilizes the DAI value at 1 USD. It allows anyone to use its Ethereum funds to create Dai on the Maker platform. Once generated, Dai can be used just like any other cryptocurrency: it can be freely transferred to other people, used as payment for goods and services, or stored as long-term savings. It is important to note that Dai generation is also building the components required for a robust decentralized margin trading platform.

By blocking a certain amount of ETH in MakerDAO smart contracts, users can create a certain amount of DAI - the more ETH is blocked, the more DAI can be created. When users are ready to unlock their ETH, which serves as collateral for their DAI loan, they simply repay the loan.

MRK token

MKR is an ERC20 token that is created or burned depending on how close the DAI stablecoin is to the US dollar. It was created by MakerDAO and its primary purpose is to support the stability of MakerDAO’s DAI token and enable governance for the Dai Credit System. If DAI remains stable, more MKR is burned decreasing the total supply. If DAI fluctuates too far from the one-dollar peg, more MKR is created, increasing the total supply. 

  • Transaction fees and collateral redemption are paid in MKR tokens;
  • Users with MKR make global decisions on the future of the platform. Moreover, the more coins on the account, the more significant the vote of such a shareholder;
  • Using the MKR token and complex algorithms, the development team managed to achieve fluctuations in the DAI rate within 5%, which is the norm even for traditional financial instruments;
  • MKR is being used as a recapitalization vehicle. That is, if an error is made in the system and excess funds are debited from the account, the program will automatically replenish them.

MakerDao produces DAI coins using smart contracts such as CDP (Collateralized Debt Position). Ethereum cryptocurrency is embedded in them, and ETH tokens provide all assets. ETH is contained in all CDP contracts, and in case of unfavorable situations, the MKR coin will cover all costs.

Recent News

  • 02 Sep 2020: Executive Vote: Raise the ETH-A Debt Ceiling;
  • 04 Sep 2020: Executive Vote: Onboard USDT and PAX, Multiple Other Changes;
  • 11 Sep 2020: Executive Vote: Increase the USDC-A Debt Ceiling, Whitelist tBTC on the ETHBTC Oracle;
  • 14 Sep 2020: Executive Vote: Changes to USDC-A and PAX Parameters, Reduce Box Parameter;
  • 14 Sep 2020: Executive Vote: Changes to USDC-A and PAX Parameters, Reduce Box Parameter;
  • 18 Sep 2020: Executive Vote: Enable TUSD, Reduce Stablecoin Liquidation Ratios, Other Changes;
  • 21 Sep 2020: Governance Polls: Oracle Whitelists, Prioritizing Real World Asset Collateral, and more;
  • 25 Sep 2020: Executive Vote: Debt Ceiling Increases, Base Rate Increase, and more;
  • 28 Sep 2020: Governance Poll: Base Rate and PAXUSD Debt Ceiling Adjustments.


After years of partnering and planning, coding and community building, scientific governing, and ecosystem onboarding, the Maker Foundation is prepared to initiate the late-stage tasks required to launch Multi-Collateral Dai (MCD) on Mainnet. The ultimate decision to activate Multi-Collateral Dai will be made by MKR voters. 

To that end, what follows is an overview of critical milestones that are aimed to be achieved before MCD goes live.

Decentralized governance & community engagement

  • The Maker Foundation will work with the governance community to plan the work to come and to thoroughly understand how the process should be managed and debated. The Foundation will solicit feedback and work to refine and optimize its processes.
  • Publication of the Collateral Onboarding Guide and Application Form. This set of documents will be depending on MKR voter approval, provide the community and collateral partners with the information they need to introduce new asset types into the governance process for review and analysis.
  • Conduct a Governance Poll to determine which tokens from the shortlist the MKR Token Holders want to have the Interim Risk Team evaluate first. Depending on the level of debate and analysis generated by the community, MCD may launch with all of the assets from the shortlist or with a prioritized subset.
  • The Maker Foundation Interim Risk Team will release a Risk Framework document. This paper will contain information, guidelines, and models for external Risk Teams to utilize when evaluating risk in the ecosystem.
  • A Governance Poll will occur to formally accept or reject the Risk Framework followed by another to formally accept or reject the current Interim Risk Team’s mandate and to signal the voters’ support for its continued operation. The details of this poll will be discussed closer to launch.
  • Evaluation of the collateral types, as prioritized by the community, will begin with discussions around the qualitative and quantitative models provided by the Interim Risk Team. The Maker voting community may choose to ratify each collateral type individually, all at once, or choose to divide them into ‘risk category’ buckets for staged integration.
  • The process will culminate with an Executive Vote by MKR holders to formally ratify the work of the Governance and Risk process before launch. This will officially set the list of voter-approved assets and their initial Debt Ceilings for MCD.

User Experience

  • Clarifying system-related terms and rebranding to make the system easier to understand.
  • Design of the new multi-collateral CDP portal.
  • Governance platform performance and UX improvements.
  • Complete redesign of the Maker website, our social channels, and product portals.
  • Design of the migration app facilitating Dai and CDP upgrades to MCD.


MakerDAO has become one of the noticed projects of the DeFi movement thanks to a series of high-profile partnerships that's helped drive adoption. However, like many other projects in this field, is exposed to the effects of huge global events. This means that system can become unstable. But like much of the industry, it's still early days, and the challenges MakerDAO, if it can overcome them, will only make it stronger.

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