What is MKR?

Maker (MKR) is the main utility and governance token for the decentralised lending platform, Maker. Maker is an Ethereum based DAO (decentralised autonomous organisation) that allows anyone to lend and borrow cryptocurrency. The advantage of this includes not having to go through lengthy credit checks that one would encounter at financial institutions. The protocol’s smart contract and system parameters such as Stability Fees and the Dai Savings Rate (DSR). Maker is one of the most popular ETH-based platforms available. Unlike most cryptocurrencies, MKR is only created or destroyed in response to DAI price fluctuations. The system employs external market mechanisms and economic incentives to help DAI’s value remain closely pegged to $1.