MKR Coin is a decentralized ERC-20 based cryptocurrency representing an investment in the Maker Project. It is also the utility Token that works with Dai Stablecoin providing functionality to the Maker platform. It is a decentralized stablecoin based on the ETH Blockchain. Its main duties include voting rights and ensuring payment of fees and interest on the platform. In this article, as Kriptokoin.com, “What is a Maker?” We will answer the question. In addition to these, we will touch on all the questions about the project.
What is Maker? What does MKR do?
Being one of the first tradable Tokens on the ETH network, the network has long been a market leader. One of the largest DApps on the ETH Blockchain, Maker Protocol specifically allows users to leverage assets to create Dai (community). This is gaining popularity day by day. The native cryptocurrency of the Maker platform is MKR.
The main aim of the project is to be able to operate DAI, a community-managed decentralized cryptocurrency with stable values pegged to the US dollar. It also generates new Dai through smart contracts, also known as Maker Protocol, Maker Vaults. Smart contracts can also be created with applications that act as various web user interfaces and network access portals. When a user wants to buy their secured crypto from the smart contract, they must first pay back the Dai they created, along with a stabilization fee.
What are the usage areas?
- It can be used to manage the Maker Protocol.
- Proposals to be voted on on the platform take the form of smart contracts. It can also be distributed by any ETH address.
- The MKR Coin community can then vote on which offers they want to switch to.
- The ETH address with the most approval votes in the form of MKR is given administrative access to make the proposed change in Maker.
- Users can stake MKR Coins specifically to ensure the efficiency, transparency and stability of Dai.
What are the advantages?
- It usually provides advantages to its users as collateralized assets in the printing of Dai.
- Dai offers the opportunity to make changes especially in savings rates.
- Offers the ability to select Oracle from tools that provide real-time data on market fees in the Maker ecosystem.
- It offers the opportunity to vote on the future of the protocol. Each user’s voting power is tied to MKR share sizes.
- Maker is trying to fix many of the problems encountered in the traditional financial industry.
- MKR Coin uses a deflation protocol to help maintain its value over time. As part of this system, a small interest fee is paid in MKR each time a CDP smart contract is closed.
- It offers passive income to investors thanks to its stablability feature.
What are the disadvantages?
- Since it is connected to the ETH network, if this project loses value, the price of MKR Coin may decrease.
- MKR Coin can be a risky investment option due to its high volatility.
- As competition among other DAO projects is high, demand for MKR Coins may decrease from time to time.
- Since there is no MKR Coin mining, its demand may decrease.
What is Maker? How to buy MKR?
Exchanges traded with MKR; Binance, Coinbase, FTX, Uniswap(V2), Huobi Global, Gemini, Bybit, KuCoin, Kraken, Bittrex. These steps are followed to buy coins. First of all, access the web/mobile application of the exchange that lists the MKR you have chosen as the first step. Then complete the account opening steps. Complete the next step, the authentication and approval process. Follow the steps of the exchange, which is the next step, to deposit funds. As the last step, select the MKR with the balance you want and create a purchase order. Store it in your trusted accounts.
