MakerDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain and is responsible for governing the Dai stablecoin. The main goal of MakerDAO is to create a stable cryptocurrency that maintains a constant value of 1 Dai to 1 USD by using a collateralized debt position (CDP) system. Users can lock up their Ethereum or other ERC-20 tokens as collateral, borrow Dai, and then repay the loan with interest to retrieve their cryptocurrency. MakerDAO also has a governance token called MKR, which allows holders to participate in decisions related to the platform’s operation and contribute to its development.
