What are the risks associated with using MakerDAO?
The risks associated with using MakerDAO are primarily related to the volatility of the underlying asset, which is the cryptocurrency Ether (ETH).
As with any cryptocurrency, there is a risk of price fluctuations that could result in losses for users. Additionally, MakerDAO is a decentralized platform and therefore users must trust that the code will execute as expected. This means that there is a risk of bugs or other issues that could lead to unexpected outcomes.
Finally, MakerDAO is built on top of Ethereum and therefore relies on the Ethereum network for its operations. If the Ethereum network were to experience any issues or outages, this could have an impact on MakerDAO’s operations.
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