Maker is an Ethereum-based smart contracts platform that backs the DAI stablecoin and stabilises its value through collateralised debt positions (CDPs). Similar to many other stablecoins, DAI is pegged to the US dollar. However, unlike any other, it is decentralised according to their whitepaper.
The collateralised debt positions system allows users to generate DAI stablecoins by locking up collateral in ETH. The latter will be released once the loan has been repaid with a 16.50% yearly stability fee that must be paid with the platform’s governance token, MKR. The amount of DAI generated can only be 40% of the value of the locked up collateral and can be freely spent like any other cryptocurrency.
MyEtherWallet, “Ethereum’s original wallet”, is a cryptocurrency wallet that allows you to manage your ETH and ERC-20 token. In an attempt to enter the decentralised finance (DeFi) scene, MyEtherWallet (MEW) has announced that they will allow their users to generate DAI directly from the platform, made possible by the fact that DAI is an ERC-20 token. This will be done by an integration of the Maker portal.
According to Kosala Hemachandra, CEO and co-founder of MEW, “Improving usability is essential if we want to see the mass adoption of DeFi and with MEW, interacting with these dApps is just as secure, but a lot easier. We are proud to be the first crypto wallet interface to design its own CDP process and look forward to welcoming other DeFi products to our platform.”
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