When you use MakerDAO, a decentralized autonomous organization built on Ethereum that issues and manages the DAI stablecoin. Also known as the Maker Protocol, it’s the engine behind one of the most used stablecoins in crypto—without any central bank backing it. Unlike USDT or USDC, which rely on companies holding dollars in banks, DAI stays pegged to $1 through smart contracts and collateral locked by users. That’s the core idea: trustless, code-driven money.
MakerDAO doesn’t just create DAI—it runs the system that keeps it stable. Users deposit crypto like ETH or BTC as collateral, then borrow DAI against it. This is called a collateralized debt position, a locked smart contract where you put up crypto to borrow stablecoins. If the value of your collateral drops too much, the system automatically sells it to pay back the loan. No human steps in. No customer service calls. Just code. That’s why MakerDAO is called the plumbing of DeFi—it’s not flashy, but everything else runs on top of it. The MKR token, which governs the system, lets holders vote on changes like interest rates or supported collateral types. It’s not a coin you trade for quick gains—it’s a governance tool for the ecosystem.
Related to MakerDAO are the tools and platforms built around it. You’ll find DAI used in lending protocols, yield farms, and cross-chain bridges. It’s the go-to stablecoin for traders who want to dodge Bitcoin’s swings without trusting a company. And while some posts here cover shady airdrops or fake exchanges, MakerDAO stands out because it’s been running since 2017—surviving bear markets, hacks, and regulatory pressure. It’s not perfect, but it’s real. You’ll find posts below that dig into how DAI stays stable, how users manage risk with collateral, and why some people treat MakerDAO like a central bank they actually control. Whether you’re holding DAI, using it to trade, or just trying to understand how DeFi stays upright, this collection gives you the straight facts—not the hype.
Multi-collateral systems let you use multiple crypto assets as collateral for loans, while single-collateral systems restrict you to one. Learn how MakerDAO’s shift changed DeFi, the pros and cons of each, and which one suits your strategy.
Nov 24 2025