Learn to create your own stablecoin in Makerdao

There is a clear trend in today’s computer world, and that is that more and more items are adding to the trend of decentralization. In this opportunity it has been the turn of the financial sector by MakerDao.

Before explaining to depth how to create your own Stablecoin, let’s take a moment to understand what MakerDao is and how it works. It is a decentralized platform that has created a token capable of maintaining a 1: 1 parity with the dollar.

However, this does not work as the typical custodian model of the anchored cryptoactive or stablecoins, as is the case of Tether, where a company must back every token issued in real money.

What is an anchored cryptoactive stablecoin?

Anchored cryptoactives are digital assets designed to maintain a constant price. By virtue of this they are linked to a stable fiduciary currency or are collateralized with products or other cryptocurrencies. They emerged as a way to counteract the volatility of cryptoactives.

Now, there are two ways to keep the price of a cryptoactive relatively stable: one is to link it with a fiat currency -with the example of Tether- and another is to collateralize it with a cryptocurrency, which in the case of DAI will be ether (ETH) .

The difference between both forms of stabilization lies in the degree of decentralization that one can have over the other. Bearing in mind that with Tether, only one entity can issue new tokens, decentralization does not exist. On the other hand, the DAI token is generated by anyone and only the backup is needed in ETH. From there, through an intelligent contract, new tokens can be generated.

What Makerdao is and how it works

MakerDAO is a decentralized platform, which aims to develop the potential of cryptoactive technology through a stablecoin. This is mentioned by the company’s own slogan.

Since it is a decentralized platform, it is governed by a community of users; but how do they do it? Well, thanks to the use of its own cryptocurrency, called Maker (MKR). Each major change made within said platform is approved by the MKR holders, voting.

To access the Maker system, a CDP is created. Once the debt is paid, the user obtains full control over Dai. This also occurs when a customer converts his Ethereum coins to Pooled Ether (PETH). This process consists of four parts:

• Creation of the CDC

• Generation of Dai

• Debt reconciliation

• Withdrawal of the guarantee

This platform operates with the principles of the Digitally Autonomous Organization (DAO), which simply means that the platform uses artificial intelligence to control Maker’s ability to regulate and stabilize the Dai. However, the incorporation of human intelligence also plays an important role in this; symbolic holders hold meetings to formulate actions and implementations for the network.

How to buy MKR and Dai Tokens

Dai can be generated by anyone, since the platform has access to anyone who can deposit a collateral asset in the system in exchange for Dai.

Then, the assets are accessible and are available to the holder once the debt has been paid; this includes a proportional commission required for the stabilization of Dai. The Maker token can be accessed through the chain of blocks Ethereum, where it is required to buy Bitcoin or Ethereum on platforms such as Coinbase and exchange them by Maker. Therefore, the Maker tiles can be stored in the MEW.

MEW can be used to hold any token of the Ethereum blockchain. The Dai and MKR tokens are currently available through the Oasis Decentralized Exchange (OasisDex) which can be accessed through an Ethereum browser.

The total supply of MKR in the market is 1 million, where the available chips in circulation are around 618,000. This implies that 61% of the total MKR offer is in circulation, where 15% is in the hands of the main members. The price of Maker currently stands at 969.08 US dollars, which means an average daily yield of 1.2%, with a market capitalization of 599,111,549 US dollars.


Please enter your comment!
Please enter your name here