Maker is an open-source protocol based on the Ethereum blockchain. It was created by the Maker Foundation that was introduced in 2014. The protocol aims to create a system where users can take out loans with cryptocurrency as collateral. Initially, the software was controlled by the foundation but is now governed by MakerDAO.
Maker is designed to work on decentralized applications: their development, storage, and distribution to users. At the same time, the team launched two types of coins - Maker and DAI. The first cryptocurrency is more of a standard one and is used to develop the project’s exchange. The second coin is more interesting, as it is the first collateral-backed cryptocurrency. DAI was launched in 2017 and is a stablecoin that solves the problem of the high volatility of crypto assets. Maker developers tied it to the US dollar (USD) with a ratio of 1:1. It is impossible to mine DAI coins as the total supply is already set, but they can be obtained on the platform itself.
On June 20th, 2022, MarkerDAO made a decision to halt DAI deposits as more users began to sell their stETH and Ethereum’s value began to fall. The DAI deposits were stopped for now to prevent users from taking out loans against stETH.