How do I use MakerDAO to borrow and lend money?
Using MakerDAO to borrow and lend money is a relatively straightforward process.
First, you will need to create a MakerDAO account and deposit some Ether (ETH) into it. This ETH will be used as collateral for any loans you take out. Once your account is set up, you can then use the MakerDAO platform to borrow or lend money.
To borrow money, you will need to select the amount of Dai (the stablecoin associated with MakerDAO) that you would like to borrow and then set the collateralization ratio (the amount of ETH that must be held in your account as collateral for the loan). Once this is done, your loan will be approved and the Dai will be transferred to your account. To lend money, you can use the CDP portal on the MakerDAO website.
Here, you can select how much Dai you would like to lend and at what interest rate. Once this is done, other users of the platform can borrow this Dai from you at the specified interest rate. Overall, using MakerDAO to borrow and lend money is a relatively simple process that allows users to access loans quickly and easily without having to go through traditional banking channels.
