MakerDAO is the protocol behind DAI, a decentralized stablecoin backed by crypto collateral.
How DAI Works
Users lock collateral in Maker Vaults to generate DAI. The system maintains DAI's peg through over-collateralization and liquidation mechanisms.
Key Features
- Decentralized stablecoin
- Multiple collateral types
- DAI Savings Rate (DSR)
- MKR governance token