---
# System prepended metadata

title: MakerDAO

---

---
title: 'MakerDAO'
disqus: The world’s first unbiased currency
---

MakerDAO
===
[website](https://makerdao.com/en/) | [twitter](https://twitter.com/MakerDAO) | [github](https://github.com/makerdao) | [crunchbase](https://www.crunchbase.com/organization/makerdao)

## Table of Contents

[TOC]

## What’s the problem?
Decentralized Stable Coin
### How the problem has been addressed? 
Overcollateral lending


## Team

1. [Rune Christensen](https://www.linkedin.com/in/runebentsenchristensen/): Founder

## Project's Complexity
Project was a breakthrough in DeFi back in 2017 but nowawdays it's not considered that complex. However from a adoption and community standpoint DAI in superior to all ther decentralized stable coin with close to 10 Bil supply.  


## Solution (Technical Details)
DAI is soft-pegged stable coin mostly backed by ETH. There are oracles feeding the price to the Maker system and with help of price feeds maker can calculate loan to value ratio of each collateralized dept posistion and start liquadating the position if it falls below a certion threshold.

On the governace side, MKR holder vote for protocol changes such as on-boarding/off-boarding collaterals, DAO expenses, collateral factors and debt ceilings.

![](https://pbs.twimg.com/media/ENrKGd_XsAIdlp6?format=jpg&name=4096x4096)
### Is there a possibility of technical failure?
Oracle failure and governance attack.
### The offered solution is unique, or it has been developed earlier by others?
Not unique but has the first mover advantage.
### How much is it easy for another group to imitate the solution?
As of writing this report Maker has TVL of $17Bil and DAI circulating supply is close to $10Bil. MakerDAO's biggest competitor is Circle, company behind USDC stable coin. 
## Project's Roadmap
1. Real World Assets
2. Tokenomics Update
## What are the revenue engines?
1. Stability Fees
2. Liquidations

## Tokenomics
### Fund Raises
2017: $12Mil private sale to a16z, polychain capital

### Allocations
<iframe width="600" height="371" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vTS6UGuGC11f0Ws_cEOzu9i4zxUrJkg57YJtwk2BtijzaMtQ3CMiwbbOJbBIRErw9B5DbPDTrgUCAak/pubchart?oid=605349790&amp;format=image"></iframe>

## How can we invest in the project?
Purchasing from public market.
## Costs that we should expect for transferring money in and out of the project
MKR token is only liquid on Ethereum mainnet, so we have to pay transation fees for ERC20 transfers.
## What is the investment horizon?
![](https://messari.s3.amazonaws.com/images/agora-images/A8D41FF3-11.%20DCF%20Bull.PNG)
![](https://messari.s3.amazonaws.com/images/agora-images/76D69C25-10.%20DCF%20Base.PNG)
![](https://messari.s3.amazonaws.com/images/agora-images/7C5D4754-9.%20DCF%20Bear.PNG)
![](https://messari.s3.amazonaws.com/images/agora-images/AD0D6FD8-13.%20Comparable%20Target.PNG)

