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  1. Home
  2. /Glossary
  3. /MakerDAO
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defi

MakerDAO

The protocol behind DAI, one of the oldest decentralized stablecoins.

Definition

The protocol behind DAI, one of the oldest decentralized stablecoins. Users lock up collateral like ETH to mint DAI, which targets a $1 peg. MakerDAO rebranded to Sky in 2024 but the original name stuck in most conversations. MKR holders govern the system and set risk parameters.

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Related Terms

Stablecoin

A cryptocurrency designed to maintain a stable value, usually pegged to the US dollar.

DAO (Decentralized Autonomous Organization)

An organization run by code and governed by token holders instead of a traditional management structure.

Overcollateralization

Requiring borrowers to deposit more collateral than the amount they're borrowing.

1inch

A DEX aggregator that splits trades across multiple decentralized exchanges to find the best overall price.

Aave

One of the biggest lending and borrowing protocols in DeFi.

Across Protocol

A cross-chain bridge that uses an optimistic verification system and a network of relayers to move tokens between chains quickly.

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