Maker DAO Update Brings Users Fresh Tools
[TL;DR] MKR.Tools now has improved features and visualizations for those using its decentralized loan platform.
A blog post from MakerDAO (MKR) creator Mike McDonald introduced users to a host of new features.
The update to the mkr.tools online platform provides those using the platform with visualizations and clearer information, including the amount of interest a loan has currently generated.
MakerDAO is one of the longest running projects built on Ethereum, and uses a complex system of decentralized loans to produce a stable coin pegged to the US dollar. The stable coin, known as Dai, is a seperate ERC-20 token to the MKR token used by those wishing to govern the system. Despite Ethereum’s fall of over 90% this bear market, the Dai token has remained stable, all without a central bank or body.
Many users have taken advantage of the new system, locking away their Eth in MKR smart-contracts in order to generate Dai. In this way, MKR has proved a trustworthy option for those looking to go leverage long on crypto. Recently it was announced that 1% of the total volume of Ethereum was now stored in the MKR ecosystem, worth $1m.
It hasn’t always been plain sailing for those using the platform however. To use the system users need to lock away Eth at a collatorization rate of 150%, with 1.5 eth locked away for every 1 eth worth of Dai generated. Throughout the bear market, many users have had their CDPs (collateral debt positions) liquidated, alongside a 13% penalty. It’s this mechanism that ensures the stability of the Dai token, responding to changing market pressures.
One of the new additions to the platform visually shows the process in action, with debt positions that fall to less than 150% being liquidated as the market falls:
Alongside visualizations and interest statistics, the platform now also provides a forecast for the burn rate of the MKR token, which decreases in supply as the network grows. The new tools will likely be a great help to those participating in the system.
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