Who Uses the Maker Protocol and Dai, and Why?

August 11, 2020

Dai and the Maker Protocol stand at the forefront of the decentralized finance (DeFi) movement—a direct result of the many advantages that crypto and blockchain technologies bring to the financial services sector.

The Protocol provides a robust set of financial tools, while Dai, the most popular decentralized stablecoin, unlocks the value inherent in those tools. Together, the Protocol and Dai fuel a large and growing ecosystem of DeFi projects that benefits users in numerous ways.

The Attraction of the Maker Protocol and Dai

The Maker Protocol is the open-source platform through which anyone, anywhere can generate the Dai stablecoin against crypto collateral assets. Moreover, anyone can also build on top of the Protocol, thanks to its composability.  

Unlike other popular stablecoins, Dai is user-generated, meaning only Maker Vault users can create it (no third party issues or administers Dai). It’s also decentralized, meaning users always have complete independent control over their Dai. Finally, because it’s open-source, developers can integrate Dai into their projects. As such, Dai offers advantages that fiat currencies can’t:

  • Fast, low-cost transactions
  • Borderless transfers
  • Transparency
  • Immutability and auditability
Anyone can open a Maker Vault to generate the Dai stablecoin.

Who Uses Dai?

People inside and outside the crypto sphere generate and/or buy Dai, and then use it or hold it for reasons ranging from curiosity to practicality.

Dai generators use Oasis.app to deposit crypto collateral into a Maker Vault to create Dai. Every Dai in existence was generated in this way. People generate Dai to pay for goods and services in a stable currency without having to sell their underlying collateral asset (ETH, wBTC, etc.).

Not all Dai users generate the stablecoin themselves. Some purchase Dai from an exchange or receive it from friends or relatives. With Dai in their wallets, people use it in different ways, including:  

Anyone who uses the Maker Protocol can generate the Dai stablecoin.
A few dapps made by the community in the Maker ecosystem.

Dai also appeals to crypto enthusiasts, who like to keep track of the latest developments in the DeFi space and engage with the technologies they believe might become the solutions for what ails the global economy.

Similarly, crypto-curious individuals experiment with Dai on the recommendation of friends or family, or start their Dai journeys by following the news of major corporations and central banks interested in launching their own stablecoins.https://www.weforum.org/press/2020/01/central-banks-waking-up-to-digital-currency-create-new-framework-for-cbdc-deployment-with-world-economic-forum-177ca5d9ee/

Enterprises are also increasingly exploring Dai in various ways. At one end of the spectrum, exchanges play important roles in the DeFi ecosystem by listing the token and providing liquidity via their communities of traders. At the other end are small- and medium-sized businesses that use Dai for everyday payments. In the middle, fintech companies act as bridges between consumers and the blockchain by providing debit card integrations. Dai-enabled debit cards, for example, allow users to spend Dai frictionlessly anywhere Mastercard or Visa are accepted.

Game developers use the Maker Protocol and Dai to provide game players with new opportunities.
More and more game developers are recognizing the benefits of integrating Dai. 

Finally, developers are very special business users. Dai’s network effect and popularity make it the ideal choice for integration with the most essential DeFi projects. Users of particular note are:

One Protocol, One Dai Stablecoin, Many Reasons to Engage

The Maker Protocol and the Dai stablecoin bring the fundamental benefits of transparency, security, and efficiency to users. Every day, people all over the world derive value from generating Dai and, in doing so, provide value to the Maker ecosystem. The number of people that use Dai will only grow in the coming years, as more and more individuals, businesses, developers, and other parties grasp the advantages of decentralized crypto assets. 

Visit the Maker Ecosystem page to discover the many dapps made by the Maker community.

August 11, 2020