Decentralized finance is making the media more often as concern grows over another global banking crisis. Ethereum is at the forefront of DeFi platforms at the moment and Maker is the market leader with over 50% share. The launch of a new multi-collateral Dai could send both higher.
Ethereum Based DeFi Evolves
Maker has a fair few accolades going for it. It is by far the most successful Ethereum based money protocol. According to defipulse.com Maker accounts for over half of the $650 million locked in DeFi. As much as 2% of the total supply of Ethereum is also locked in on the platform and over 2.4 million ETH is locked in DeFi in total.
Just this week Dai hit a $100 million supply for the first time as DeFi gathers steam in a world where banks cannot be trusted. The multi-collateral Dai (MCD) is nearing launch date and this is definitely causing Maker (MKR) to pump at the moment.
MakerDAO is the organization behind the Dai stablecoin and its accompanying decentralized credit system. Dai is dollar pegged but not dollar backed. It is more valuable because it derives its worth from pledged collateral. The supply is dynamic because it is created and destroyed based on loans made…
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Author: Martin Young