What are some of the use cases for Dai and MKR tokens?
Dai and MKR tokens are two of the main components of the Maker crypto project.
Dai is a stablecoin, meaning it is designed to maintain a stable value, and is used as a medium of exchange on the Ethereum blockchain. MKR is an Ethereum-based token that is used to govern the Maker platform. The primary use case for Dai is to provide a stable store of value on the Ethereum blockchain.
This allows users to transact with each other without having to worry about volatility in the price of their assets. Additionally, Dai can be used as collateral for loans on the Maker platform, allowing users to borrow against their assets without having to liquidate them. MKR tokens are used to govern the Maker platform and ensure its stability.
MKR holders have voting rights in Maker’s decentralized autonomous organization (DAO), which allows them to influence decisions regarding how the platform operates. Additionally, MKR tokens are used as a form of insurance against potential losses incurred by users who take out loans on the platform. If a user defaults on their loan, MKR tokens are burned from circulation in order to cover any losses incurred by lenders.
In addition to these primary use cases, Dai and MKR tokens can also be used for speculative purposes by traders looking to capitalize on price movements in either token.
