What is MakerDAO and how does it relate to USDC?

3 answers

• Dec 24, 2021 · 3 years ago
  MakerDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. It is responsible for the creation and management of the stablecoin called Dai. USDC, on the other hand, is a stablecoin issued by Circle and Coinbase. While both MakerDAO and USDC are stablecoins, they operate on different principles. MakerDAO uses a collateralized debt position (CDP) system to maintain the stability of Dai, while USDC is backed by a reserve of US dollars held in bank accounts. Although they serve similar purposes, MakerDAO and USDC are separate entities with different mechanisms for maintaining stability.
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• Dec 24, 2021 · 3 years ago
  MakerDAO is like the brain behind the stablecoin Dai, while USDC is a stablecoin issued by Circle and Coinbase. MakerDAO uses a unique system called Collateralized Debt Positions (CDPs) to generate Dai, which is pegged to the US dollar. On the other hand, USDC is backed by actual US dollars held in bank accounts. Both MakerDAO and USDC provide stability in the volatile cryptocurrency market, but they have different approaches to achieving it.
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• Dec 24, 2021 · 3 years ago
  MakerDAO is a decentralized organization that governs the creation and management of the stablecoin Dai. USDC, on the other hand, is a stablecoin issued by Circle and Coinbase. MakerDAO's Dai is generated through the use of collateralized debt positions (CDPs), where users lock up their cryptocurrency assets as collateral to generate Dai. USDC, on the other hand, is backed by a reserve of US dollars. While both MakerDAO and USDC aim to provide stability in the cryptocurrency market, they have different mechanisms and issuers.
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