• Maker (MKR) is the native token of MakerDAO’s Dai, a decentralized stablecoin using a unique ‘Maker Collateral Vault’ system.

• Maker vaults were created to help finance off-chain activities. They were used for a shipment to Hong Kong of Australian beef.

• Maker Protocol, ConsolFreight and Centrifuge partnered together to complete the transaction. ConsolFreight also mint an NFT for the manifest.

• MKR rallied 30% within 24 hours of TerraUSD’s crash. DAI is now the fourth largest stablecoin.

Maker (MKR), the Governance Token of MakerDAO/Maker Protocol allows you to manage and issue the DAI stablecoin.

Maker Protocol utilizes Maker Vaults to allow users to deposit their cryptocurrency as collateral and create Dai for it. With Vaults, users can repay their Dai loans to redeem collateral.

Maker (MKR) continued to trade in the green after (LUNA’s) collapsed. What was it that kept Maker from the red ocean?

Recent developments

One of Maker’s biggest goals is to finance off-chain business activities, something in which it has been steadily making strides. Maker, which announced on May 9, that one of its vaults would be used for financing a shipment from Australia of beef to Hong Kong.

According to the announcement, the transaction was executed in partnership with Centrifuge – a protocol that allows users to finance real-world business activities with DAI.

ConsolFreight, a trade finance provider operating on Centrifuge, was also involved in the transaction, financing it by minting DAI via Centrifuge’s Maker vault.

While this marks growth in its real-world utility, the true driving force behind Maker’s upward price trajectory is the fact that its main rival, Terra (LUNA), is on the edge of collapse. Maker is not like TerraUST that moves with LUNA. Instead, Maker has a network of vaults.

It is only available to users who place 10ETH into a vault. They can only mint 5ETH worth of DAI stablecoin (with 20% collateralization). Maker explains that if the collateralization drops from 200 to 145%, (in the case that the price falls for ETH), the vaults of these users are liquidated.

How does a liquidation occur? Collateral is sold at the appropriate amount of Dai for covering outstanding debt plus a penalty fee as per Maker Vault parameters. The remaining collateral can then be withdrawn.6/

— Maker (@MakerDAO) May 12, 2022

Maker Protocol repays Dai loans and closes Vaults in order to safeguard its collateral during bear markets. This infrastructure is more stable than TerraUSD’s methods and has helped to keep the DAI stablecoin really stable.

Future Events

Recently, Instadapp released Dai Vault integration to its ‘Lite’ version, allowing users to start earning up to 5.7% APY on their Dai investments.

Maker’s first Twitter Space (NYSE:] Space will be held Friday 13 May at 16 UTC. This space is intended to educate its audience. Instadapp’s team will also participate and discuss their product as well as the integrations to the Maker Protocol, Dai.

Prices Updates

Maker (MKR), in spite of the long-term downtrend, has remained positive despite it being a crypto. MKR gained nearly 30% over the past 24 hours and has risen by as much as 48% within the last 48 hours.

This is the Maker price chart (MKR) for one day. Source: CoinMarketCap

Maker, the sole crypto among the 100 top-100 has posted gains within the last week. Maker (MKR) is up by 10% for the last seven days, while market leaders like (BTC), (ETH), and (BNB) are down by ∼20% or more.

This is the 7-day price chart of Maker (MKR) Source: CoinMarketCap

Maker has traded at $1460 today, following an interday peak of $1,747.71. Maker, which has a market capital of $1.43 million, is currently ranked 43rd in cryptocurrency.

The Flipside

• Two months ago, Terra founder Do Kwon posted that Dai would die because of the swift growth of Terra’s stablecoin, UST.

• DAI, a 5-year-old stablecoin has apparently outlived UST (which was launched in September 2020).

The Community

Maker is a distributed stablecoin. The Maker community is pushing it to the top. The coin’s owners directly take part in its governance. Voting power depends on individual commitment, which is based on staked amounts.

The Maker Protocol community is reaffirming their belief in the superiority of their stablecoin after the crash in UST. Tweeter @UncleRewards said:

For the outstanding way Maker handled EXTREME market conditions, $MKR should be given respect. Protocol is still going strong, as are the large brains who designed it.

— Uncle (@UncleRewards) May 12, 2022

In a thread discussing the fundamental reason for the UST crash, and comparing it to Maker’s protocol, Sonystinha Isentão shared:

The pegging system they used was inefficient and, as was well known, only one volatile asset was required to keep it. The Maker team had issues with the system and needed to mint MKR in order to get back their collateral. But, DAI pegs were never lost. The issue they faced was relying only on ETH. This currency is also used by many other services.

— Sonystinha Isentão (@SonystaIsento) May 13, 2022

Atcryptolife_shop expressed optimism about MKR’s future.

Maker has been doing quite well after the $LUNA tragedy. In the coming days, USD 2000+ will be possible for $MKR.

— CryptoLife.Shop (@cryptolife_shop) May 13, 2022

What You Need to Care About

The over-collateralization structure adopted by the Maker Protocol ensures that there is always enough liquidity to cover the minted DAI token, Thereby preventing the de-pegging and collapse of its stablecoin, as has happened to TerraUSD.

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