MakerDAO is a decentralized autonomous organization (DAO) on the Ethereum blockchain that manages the Dai stablecoin, a crypto-backed currency designed to maintain a 1:1 peg with the U.S. dollar. Through smart contracts and a community governance model, MakerDAO enables users to generate Dai by locking up collateral, offering a decentralized alternative to traditional financial systems.
Founded in 2014 by Rune Christensen, MakerDAO is a pioneering decentralized finance (DeFi) protocol that operates on the Ethereum blockchain. It facilitates the creation of Dai, a stablecoin soft-pegged to the U.S. dollar, by allowing users to deposit various cryptocurrencies as collateral into smart contracts known as Maker Vaults. This overcollateralization ensures the stability of Dai, even amid market volatility. Governance of the protocol is handled by holders of the MKR token, who vote on key parameters such as collateral types and stability fees. MakerDAO's ecosystem has grown to integrate with over 400 applications and services, solidifying its role as a cornerstone in the DeFi landscape.