MakerDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain and manages the stablecoin DAI. It is a decentralized platform that allows users to create their own cryptocurrency, known as collateralized debt positions (CDPs), that are locked up in a smart contract in exchange for DAI tokens, which are stablecoins pegged to the value of the U.S. dollar. MakerDAO ensures the stability of DAI using a system of over-collateralization, in which the value of the collateral backing the DAI is always greater than the value of the stablecoin itself. MakerDAO allows users to participate in a decentralized financial system without the need for intermediaries such as banks.
