It is a halal token to trade.
What is Maker?
Maker (MKR) is the governance token of the MakerDAO platform, a decentralized lending protocol built on Ethereum. It facilitates borrowing and lending of cryptocurrencies through a system of collateralized debt positions (CDPs).
Key Features of MakerDAO
- DAI Stablecoin: MakerDAO allows users to generate DAI, a decentralized stablecoin pegged to the value of the US dollar.
- Collateralized Debt Positions (CDPs): Users can lock up crypto assets as collateral in CDPs to borrow DAI.
- Decentralized Governance: MKR token holders play a crucial role in shaping the MakerDAO protocol through voting on proposals related to fees, stability parameters, and platform upgrades.
Uses of MKR Token
- Governance: MKR holders have voting rights on the MakerDAO platform, influencing the protocol’s direction.
- Stability Mechanism: MKR tokens are used to absorb system losses and maintain the peg of the DAI stablecoin.
- Potential Fee Reductions: Some exchanges might offer MKR holders reduced fees for trading or using their platform