The Maker Protocol, also known as multi-secured Dai (MCD) system, allows users to generate Dai using Maker Governance approved assets as collateral. Maker Governance is a process organized and operated by the community to govern all aspects of the Maker protocol. Dai is an asset-backed, soft-anchored DOLLAR cryptocurrency that is issued in a decentralized, non-discriminatory manner. With low volatility, Dai is able to withstand hyperinflation and provide economic freedom and opportunity to any individual on a global scale.

While bitcoin is in many ways a successful cryptographic currency, it is not an ideal medium of exchange because its supply is fixed and its speculative nature causes price fluctuations that prevent it from further developing into a mainstream currency. Bitcoin's weakness is the Dai staboin advantage, precisely because it is designed to minimize price volatility. *Dai is a decentralized and neutral asset-backed cryptocurrency whose price is soft-anchored to the US dollar. Stability is the meaning of Dai.

Dai's creation, value endorsement and price stability are achieved through collateral assets deposited in Maker's vaults. Collateral assets refer to digital assets voted into the agreement by MKR holders. Any Ethereum-based asset can be used as collateral for Dai generation under the Maker protocol as long as it is approved by the MKR holder. In licensing an asset as collateral, MKR holders must also select specific risk parameters accordingly.

Dai is generated by users using the Maker protocol to create smart contracts called "Maker Vault" and deposit assets. This process is both Dai's entry into circulation and users' access to liquidity. In addition, users can purchase Dai from an intermediary or exchange. Meanwhile, Dai can be sent to others to buy goods and services with, or even transferred into a Savings account through a Maker protocol feature called Dai Savings Rate (DSR). Every Dai in circulation is collateral backed by excess assets that is always worth more than Dai debt, and all Dai transactions are publicly visible on the Ethereum blockchain. Dai's creation, value endorsement and price stability are all achieved through collateral assets deposited in Maker's vaults. Collateral assets refer to digital assets voted into the agreement by MKR holders. Any Ethereum-based asset can be used as collateral for Dai generation under the Maker protocol as long as it is approved by the MKR holder. In licensing an asset as collateral, MKR holders must also select specific risk parameters accordingly. Users can interact directly with the Vault and the Maker protocol. The user enjoys complete and independent control of the security as long as the price of the security does not fall below the minimum necessary level, known as the Liquidation Ratio. The liquidation process will be triggered if the collateral reaches the liquidation rate. There is a clearing contract in the Maker system. The Maker system always requires Dai to overmortgage. When the system finds that some assets are at risk, it liquidates the assets that are too risky. It first liquidates CDP loans with a collateral ratio of less than 150%. And to prevent liquidation holders must deposit more collateral into CDP's loan certificates or repay Dai to raise collateral rates. When liquidation occurs, a portion of the penalty (a 13 percent penalty) and fees are deducted. After liquidation, CDP loan certificates will be closed and users will not be able to retrieve their previous collateral by repaying Dai. The Dai obtained from the liquidation auction of the original collateral will be destroyed. If there are any assets left after the auction to repay Dai, users can get them back.

Participate in the Maker DAO governance vote.

Excess mortgage, automatic settlement.

The Maker protocol allows users to generate Dai, a stable price store of value that exists entirely on the blockchain. Dai is a decentralized staboin that is not issued or managed by any centralized participant or intermediary or counterparty with trust risks. It is non-discriminatory, does not respect national boundaries and can be obtained by anyone anywhere in the world.

MKR holders can vote on which assets can be included in the mortgage assets, and MKR will be used to pay part of the stabilization fee when the user reclaims DAI. MKR will then be destroyed or repurchased to maintain the price. MKR tokens also serve as a recapitalization resource for the system. In the event of extreme market volatility and a severe shortage of collateral, the system triggers a debt auction to increase the supply of MKR tokens to repurchase DAI, recapitalize the system and protect the price stability and solvency of DAI.

The current MakerDAO mortgage lending platform is more about providing leverage for crypto investment. At the same time, it provides better liquidity for mainstream currencies such as Ethereum and magnifies the value of Ethereum. The disadvantage is that there are only a few cryptocurrencies that can be mortgaged, so it is impossible to complete the mortgage lending to the mainstream currencies, which reduces the influence of the platform liquidity.

For the first time, cryptocurrency was adopted as the stablesoin protocol for anchoring underlying assets, and a dual-token lending system was constructed.

The collateral assets used to generate Dai were attacked, the price of the collateral assets collapsed, oracle attacks, malicious Maker governance proposals, smart contract bugs, market regulation, and core team changes.

With hundreds of partners in cryptographic currency and one of the strongest developer communities, MakerDAO has become the engine of the decentralized finance (DeFi) movement. Maker is unleashing the power of blockchain to fulfill contemporary expectations of economic empowerment.

MKR is the ecological and governance token of the MakerDAO system. The main demand comes from the subscription process of DAI stable token, and the value is determined by the ecology of DAI stable token. There is borrowing demand in the DeFi market and MKR value will rise if there is further growth on the demand side.