MakerDAO is a decentralized stablecoin platform on the Ethereum blockchain led by Rune Christensen. It uses collateralized debt positions to generate the stablecoin DAI, which aims to maintain a value of $1. MKR token holders govern the platform by voting on risk parameters. DAI is backed by collateral like ETH and remains stable through an automatic feedback mechanism that adjusts the system in response to market conditions. MakerDAO provides a stable digital currency and decentralized leverage through collateralized debt positions.

1. Professor : Dr Sadegh Dorri Nogoorani
Student : Nazanin Mohammadkhani
Course: Electronic Commerce Security
Spring 2019 1

2. Outline
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3. What’s Maker ?
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 MakerDao is led by Rune Christensen ,CEO and
founder DAI coin.
 the MakerDAO launched in December 2017.
 Decentralized on the Ethereum blockchain with
stable coin Dai.
 Maker leverage Ethereum assets to generate Dai on
the Maker Platform by everyone.
 Open source , tokens on the ERC20 Protocol.
 High Level security
 Automatic system feedback.
 Important element in the ecosystem of Ethereum.

4. What’s Dai?
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Popular digital assets as Bitcoin (BTC) and Ether (ETH).
The Dai Stablecoin designed to solve the crucial problem of stable exchange of
value in the Ethereum ecosystem and the wider blockchain economy.
Dai secured by CDP-collateral for debt ,sent to a smart contract and platform
for margin trading. framework allows developers to provide affordable prices.
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5. Maker’s Features
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 Collateralized Debt Position (CDP)​ ​ ​ ​ ​ ​
 Dai
 Debt Auction​ ​
 MKR Voters​ ​
 Oracles
 Risk Parameters​ ​

6. Collateralized Debt Position
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1.Collateralized Debt Position
Send Ether
2. Get Stablecoin(Dai)
3. Return Coin (Dai)
4. Collateral Returned

7. CDP
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Borrow Dai with a CDP
Repay Dai + fee of retrieve collateral
Borrow money with a mortgage from the Bank
Repay debt + interest to retrieve house

8. Leverage Risk
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Dai , Ether
Liquidate CDP
Interest CDP
wage
Maker coin&
Ether
liquidate in
CDP

9. Maker Voter
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The MKR token plays an important role in the
governance Maker Platform. Governance is done at the
system level through election of an Active Proposal by
MKR voters.
The Active Proposal is the smart contract that has been
empowered by MKR voting to gain administrative
access to modify the internal governance variables of
the Maker Platform.MKR.
Goverence has privacy key to approve vote.
The proposal smart contract has the highest number
votes. Inclusion, Dialogue, Transparency, Neutral
facilitation, Encouraging participation, Knowledge
transfer, Conflict resolution, Efficiency, Usability and
Security

10. Risk Parameter
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 Debt Ceiling:​ ​ maximum amount of debt that can be created by a single type of
CDP
 Liquidation Ratio:​ ​ the collateral-to-debt ratio at which a CDP becomes
vulnerable to liquidation.
 Liquidation Penalty: determine the maximum amount of Dai raised from a
Collateral Auction that is used to buy up and remove MKR from the supply.
benefitting the PETH to ETH ratio.
 Stability Fee: Once a CDP is made, a stability fee is accrued over time. It is an
annual percentage yield and needs to be paid by the CDP user. This can only be
paid by MKR and the MKR is immediately burnt after it has been paid off.
 Oracles: The Maker Platform requires real-time information about the market
price of the assets used as collateral in CDPs in order to know when to trigger
liquidations. MKR voters choose a set of trusted oracles to feed this information
to the Maker Platform through Ethereum transactions.

11. Maker Diagram
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CDP
First layer
Guarantee
Stability Fee
Parameter
Management
Second layer
Guarantee

12. Coin marketcap
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13. Maker Range
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14. Maker panel
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15. Dai Architecture
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Ether :itself is not directly used in Maker
DAO system.
Weth :is one-to-one reflection of ETH, but as
ERC-20 token.
Peth :is short for “Pooled Ether”. When you
deposit WETH to Maker DAO.
Dai: is MakerDAO stable coin, which is
expected to be close enough to 1 US dollar
Sai Tub: Smart contract stores CDP’s. CDP
is your debt in DAI leveraged by PETH
MKR: token used to pay commission fee on
closing the debt ( by wipe method ). Maker
Platform is upgraded to support multiple
collateral types.

16. Maker Architecture in Sai
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17. Maker Benefits
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More than 3000 people holding Maker
Highest risk, Highest reward
Manages risk
Financial bailouts
Earns income
Independent from politic Games
Maker

18. Maker Exchange & Wallet
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https://Bibox.com
https://cdp.makerdao.com
https://ether.delta.com
https://idex.com
https://blockfi.com
My ether Wallet
Meta mask
Etherum mist dapp
Trezor
Parity

19. Critics of Maker & Dai
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Maker and dai have become a popular subject among cryptocurrency supporters
largely because some people like the concept of a liquid stablecoin for certain use
cases as well as the idea dai is backed by crypto.
Some skeptics believe the project could fall victim to the same scenario that happened
to the Ethereum network’s first DAO which saw the loss of $50 million in June 2016
the Maker’s creators explain in the white paper that in the event of a “black swan”
crash the organization will dilute the “pooled ether.”
MKR holders set the Sensitivity Parameter when the market is normal, however,
during times of crisis, the Target Price and Target Rate are determined by market
dynamics.

20. Compression
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Dai (Maker’s stablecoin) is backed by collateral .
No mining ,No blocking
No transaction fee expect gas fee ether.
Dai is secure from Hack, Human errors.
MKR value by Dai is globally accessible.
Transparency when Ether value goes down by panel Maker.
Communication between people in world.
Global settlement provides a final layer of safety.
Maker also provides decentralized leverage, which is awesome.

21. Conclusion
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The Dai Stablecoin System was designed to solve the crucial problem value
by Ethereum ecosystem and the wider blockchain economy.
Nature of risk and market place ,reward of services, financial reform.
People coordinate to each other commitment and communication .
Help to Nature.
Powerful in future because of technology raise faster than we think.

22. References
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 https://makerdao.com
 https://medium.com
 https://www.youtube.com
 https://news.bitcoin.com
 https://github.com/makerdao

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