MakerDAO is an Ethereum-based protocol that issues the Dai stablecoin and facilitates collateral-backed loans without an intermediary. Its widespread use and DeFi integration make MakerDAO one of the most operational protocols in the crypto ecosystem.

How does MakerDAO work?

To enable the process of borrowing and lending to flow seamlessly, Maker DAO uses the Maker protocol to borrow against collateral. However, unlike traditional loans, which tend to accept fiat currencies as collateral, Maker allows its users to borrow against multiple crypto pairs, which the protocol supports.

How does MakerDAO make money?

The Maker protocol has Dai as its native token, and token holders have several opportunities to make money on the network. ... Besides the staking and lending options offered by various DeFi projects, Maker provides a unique way to make money; the Dai Savings Rate (DSR) contracts.