Altcoin Explorer: Maker, the Central Bank for the Decentralized Finance Ecosystem
Maker’s native token MKR is a governance token utilized for paying fees in the Maker ecosystem as well as for governance decisions in Maker’s Decentralized Autonomous Organization (DAO). Basically, the system works like this:
– A user deposits ETH or BAT in a Maker Vault, thus generating a certain amount of DAI (at the moment the collateralization rate is at least 150%, this means that if you deposit $ 150 in ETH, you can generate a maximum of 100 DAI (about $ 100)).
Thanks to the tools mentioned above, MakerDAO tries to guarantee DAI price stability by adjusting interest rates and collateralization rate of the loans. If a user manages to accumulate a big stack of MKR token (at the moment the amount needed to make an attack is around 80,000 MKR), it could gain control over the Maker contract and steal all the ethers deposited as collateral.
