Flipside Daily Mover: MKR
A coin per day, making big moves
MKR Receives Boost from DAI Launch on Coinbase Earn
July 31, 2019
MKR FCAS is up 3.57% since July 26th, led by a 72-point (9.09%) spike in User Activity. Developer Behavior has remained steady at 918, while Market Maturity declined 5-points (-0.82%). Price is down -2.03% over the same time period.
#EarnOrDAI
OK, full disclosure, this section title is not the property of the author. Credit is due to MakerDAO’s #VoteOrDAI, which graces announcements around votes on the project’s Stability Fee. For those not familiar, MakerDAO has created the first crypto-collateralized stablecoin on top of Ethereum, called DAI. In order to generate DAI, users deposit ETH into a Collateralized Debt Position (CDP), and receive DAI in return. The system charges a Stability Fee to open up a CDP, which essentially works as an interest rate to control DAI supply and keep it at its $1 peg. MakerDAO, the project, functions as a dual token system, where the MKR token behaves as a governance token to vote on proposals within the ecosystem, most commonly in regard to the DAI Stability Fee, and the DAI stablecoin is a product of the system’s mechanisms. MKR tokens are also minted or burned in accordance with price fluctuations.
Maker fundamentals have been on the rise since July 26th, following the launch of DAI lessons on Coinbase Earn’s, particularly the advanced lesson which walks participants through generating DAI via a CDP within the Coinbase Wallet. Those selected to participate receive $14 in DAI upon completion. The process is an evolution of the Coinbase Earn platform, moving from educational videos to actionable tasks that tear down the barriers associated with adoption of new DeFi technology.
🌶️ Hot Take
MakerDAO sits at the heart of the DeFi movement. By creating a crypto-collateralized stablecoin controlled by a unique DAO governance structure, the team is enabling a broad tokenized economy to exist solely on the blockchain. Along with other heavy hitters such as 0x and Bancor, the future for a fully decentralized financial ecosystem, where liquidity and autonomy are inherent, is quickly becoming a reality.
This new vision is not necessarily focused on up-ending traditional financial institutions, but rather a parallel track that can improve on existing mechanisms and be complementary to others. By driving further adoption through Coinbase Earn and working towards the impending release of Multi-collateralized DAI, Maker is propelling DeFi to new heights.
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