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MakerDAO: Today's Price and What It's Used For?

 MakerDAO: Today's Price and What It's Used For

MakerDAO: Today's Price and What It's Used For

MakerDAO: Today's Price and What It's Used For?

The cryptocurrency MakerDAO has been on the rise in recent weeks, but what exactly does it do? What’s its purpose? And how does it help you? In this guide to MakerDAO, we’ll discuss the coin’s origins, its core features, and some of the many different uses it can have in the cryptocurrency space today.

What is MakerDAO?

Maker is a blockchain based organisation on the Ethereum network that creates and backs the Dai stablecoin. The Dai stablecoin is pegged to the US Dollar, meaning its value stays relatively stable compared to other cryptocurrencies. MakerDAO currently has a low supply and high demand, which has resulted in a high price per coin

Maker is trading on several cryptocurrency exchanges and has a current market cap of over $1 billion. The Maker token (MKR) is currently trading at $980 per token with a 24-hour volume of nearly $2 million. MKR tokens are used to create and maintain the Dai stablecoin.

  • The MKR tokens themselves can be traded on various cryptocurrency exchanges or can be staked for Dai tokens. There are no limits on how many tokens can be staked and anyone who holds more than one thousand MKR tokens becomes a member of the MakerDAO system. 
  • The first thing you will notice when looking at today's MakersDao charts is that there was an update posted earlier this morning, titled An update from makerdao

This update addresses some concerns about any potential shutdowns in 2019 or 2020 due to regulatory action against bitcoin or ICOs by major governments like China. If these concerns come true, then the Dai could still have stable prices while bitcoin falls into chaos. 

Maker would also be working to secure off-chain arrangements with exchanges such as Coinbase and Gemini so that Dai holders do not get burned. The concern is whether or not enough people believe in Maker, since it relies on people pledging their MKR tokens as collateral for Dai loans. One must trust that if needed, all pledged collateral will return back to pledgers. If enough people pledge their collateral, then it should be fine but if not enough do so, then problems may arise.

How Does MakerDAOI t Work?

1-MakerDAO is a decentralized autonomous organization on the Ethereum blockchain that creates and backs the Dai stablecoin. The Dai stablecoin is pegged to the US Dollar, meaning 1 Dai = $1 USD. MakerDAO does this by using a system of collateralized debt positions (CDPs).

  • In order to create Dai, users first need to lock up ETH in a CDP. Once ETH is locked up, users can draw out Dai against it. Users then pay interest on their loans every 24 hours, which causes the amount of Dai they have to decrease over time. When users want to get back their ETH, 

2-they close their CDPs and are reimbursed with an amount equivalent to the amount of ether plus any accrued interest in USD$. MakerDAO also uses something called price oracle which takes data from exchanges like CoinMarketCap and displays its value as USD$. If there is no market data available, the oracle will use another cryptocurrency’s market cap for reference instead. 

  • MakerDAO’s goal is to be able to one day take care of all global trade settlements, including commodities and securities trading, so even though it has been off-chain so far they believe that one day they will be able to do so on-chain without problems.

What makes this blog post interesting?

How To Buy MKR Tokens

The (MKR) tokens are offered on cryptocurrency exchanges. As of today, the total supply of MKR is 1,000,000 and the circulating supply is 744,344. That means that the maximum price per MKR today is $1,335. The all-time high (ATH) price for MKR was $2,634 on January 13th, 2018.

The Maker Foundation holds approximately 27% of all MKR in existence. Every week, the Maker Foundation burns a portion of these tokens, which reduces the total supply. You can find real-time data for today's MKR price on CoinMarketCap.

Live charts are also available to give you an idea of how much MKR costs at any given time. 

  1. Just like Bitcoin, Ethereum, and other cryptocurrencies, Maker’s value fluctuates over time. On December 11th, 2017, one token traded for as little as $376.00 USD (~$500 CAD). Six months later, on May 10th, 2018 one token cost as much as $1876 USD (~$2500 CAD). 
  2. The crypto crash did not spare Maker either. In mid-December 2017, when BTC was trading at its ATH, MKR hit its ATH of $2,634. Five days later it had fallen by more than 75%. By January 12th, MKR had reached $853.62 USD (~$1200 CAD), only 25% of its previous price. 

Even though the crypto market has been trending upwards lately, MakerDAO has struggled to maintain its current value. However, this volatility is what makes cryptocurrency so appealing. Many people use this volatility to make money by day trading or investing in coins with low prices but promising futures prospects. While many are excited about the potential applications for blockchain technology, most people will never be able to afford even a fraction of bitcoin or ether because their prices have skyrocketed so dramatically in recent years!

How To Use DAI (The Currency)

You can use DAI to make purchases, similar to how you would use any other currency. You can also hold DAI as an investment, like you would with any other cryptocurrency. When MakerDAO is used as a currency, it is decentralized, meaning that it is not subject to the control of any one government or financial institution. 

The value of DAI is based on the value of the underlying collateral, which is mostly ETH. As of today, 1 MKR is worth $491.61 USD. This means that for every dollar you invest in MakerDAO, you'll get 490.91 dollars worth of tokens in return. 

Currently, there are over 2 billion MKR tokens in circulation with a market cap of almost 584 million USD (572,853,869). In total there are 100 million tokens available for purchase by the public at this time. There are many predictions about what will happen in the future when all 100 million tokens have been sold off to investors - some say that there will be downward pressure on price due to increased supply while others believe that supply has no effect on price and demand will always determine the price in this situation. 

Whether you're considering investing in Dai or not, it's important to know that its purpose is primarily as a stablecoin and could potentially decrease if more competitors enter the space. If you're looking for returns on your investments, Dai may not be the best option for you. 

  • A/ If MakerDAO does end up being successful enough to overtake Tether as a leading stablecoin then the entire industry could change dramatically. 
  • B/ The token offers much more stability than anything we've seen before because its backed by Ethereum rather than fiat currencies like USD or EUR. 
  • C/ Ultimately, Dai might represent the future of cryptocurrencies - and if so, then holding onto your tokens might prove very profitable in years to come!

how does makerdao make money

MakerDAO is a decentralized autonomous organization on the Ethereum blockchain that creates and backs the Dai stablecoin. The Dai stablecoin is pegged to the US dollar and is designed to be used as a decentralized, digital alternative to fiat currencies. The coin’s value does not fluctuate based on speculation or economic theory but is instead backed by collateralized assets called Collateralized Debt Positions (CDPs). 

CDPs are made up of different types of cryptoassets like ETH, ERC-20 tokens, or Bitcoin. 

To receive Dai for your CDP you must first lock up your collateral in a CDP and pay an interest rate fee to cover the risk of using volatile assets as collateral. In return you will receive an amount of Dai equal to $1 USD plus any unpaid interest accrued during the time it took you to close your CDP.

Unlike other cryptocurrencies, Dai cannot be mined with computers or bought off an exchange. Instead users buy it from someone who already has it in exchange for goods and services through what is known as over-the-counter trading. People often use these OTC trades to swap goods such as coffee for bitcoin then trade those bitcoins for DAI at a later date when they need cash.

  • EOS has also created their own stablecoin which offers similar benefits to DAA but unlike DAA does not require collateral; its token holder can simply swap their token for one backed by assets with no questions asked.

Alternative Uses For DAI

DAI can be used for a variety of things, including changed token topology, daily close rate movement, digital asset auctioning, and more. Its marketcap is currently over $1 thousand. Plus, its unique structure means that it could potentially see even more use cases in the future. 

  1. Their website lists different places where you can spend your DAI, such as buying items on Amazon or Uber rides. 
  2. The Maker team doesn't charge any fees to use their cryptocurrency as they are backed by ETH tokens which are at all times worth $1 USD each. 

Investors should look into what projects have adopted the Maker platform to get an idea of how the project may grow in the future and how much potential investors might stand to gain from investing now. MKR tokens holders will receive 0.5% yearly interest from Ethereum loans made through CDPs. 

Anyone who owns MKR can loan out ETH to someone else through Maker's smart contracts in order to generate returns without having to give up ownership of their assets or suffer major losses if ETH tanks again like it did last year when prices plummeted after reports that hacked exchanges allowed users to sell off stolen coins multiple times.

With Maker, this kind of hack would not have been possible since these types of transactions would require validation before sending the transaction data across the blockchain. In return for creating stability in an otherwise volatile market, Ether owners receive interest payments generated by other people's borrowed money!

Where Can I Get Help / Support?

If you're looking for help or support with MakerDAO, there are a few places you can go. The Maker team has a few channels set up where you can ask questions and get help, including their token support site, their blog, and their subreddit. 

You can also find helpful resources on their wiki. If you're looking for more general information about MakerDAO, you can check out their website, which includes an overview of what Maker is and how it works. Finally, if you want to stay up-to-date on the latest news and price movements for Maker, you can follow them on Twitter. In addition to providing updates about development, progress, and announ

cements from the company, they tweet out information about crypto news that might affect Maker in one way or another. The success of any cryptocurrency depends heavily on its ability to provide value as a form of exchange and store of value. 

Though they don't have any current plans to release other tokens, they do plan to keep adding functionality through soft forks as needed and will explore building new interfaces for users who aren't interested in the complexities of dai stablecoin. 

Maker leverages smart contracts through Ethereum to maintain stability against the volatility seen by many cryptocurrencies; this allows people who are interested in using cryptocurrencies as mediums of exchange without being exposed to major losses if the value fluctuates too much.


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