MakerDAO
Manage Maker Vaults and generate the stablecoin DAI
What is MakerDAO?
MakerDAO is a decentralized protocol maintained by MKR holders for the purpose of creating a collateralized stable coin DAI. A variety of participants in the ecosystem work to keep the price of DAI equal to 1 USD. Users can also generate DAI by locking up collateral in a Vault and generating DAI.
If ETH = $1000 and has a LTV of 66%; then one could generate up to $660 DAI
What is a MakerDAO Vault?
A Vault is a smart contract that holds the collateral deposited into the Maker Protocol. Vaults each have an asset type. For example, an ETH Vault allows one to borrow DAI against ETH collateral. Each Vault has a loan-to-value or LTV, the LTV is the maximum amount of DAI that can be borrowed against the collateral.
What is the Stability Fee?
DAI generated from a Vault is charged a stability fee until it is paid back. This fee varies among the different vault types. The stability fee is charged as DAI and is applied automatically to the vault as debt. This is similar to the interest rate you pay on debt.
How to open a vault?
How do Vault liquidations work?
If the collateral of a Vault falls beneath the collateral ratio, then the vault is liquidated. When a vault is liquidated, a portion of the collateral is used to pay the remaining debt and vaults are charged a 13% penalty fee.
Do More with your Vault on Instadapp
Instadapp includes several functionalities that expand what you can do with your vault. Easily leverage a vault, swap the underling collateral or move debt between vaults. You can find these functions under Vault Swap. See this page for more information:
āļø Available Functions
Basic Functions
šā Supply - Deposits asset from DSA to MakerDAO ā¬ļø Withdraw - Withdraws asset from MakerDAO back to DSA ā©ļø Borrow - Borrows asset, asset is withdrawn to DSA ā¤µļø Payback - Spend asset on DSA to payback debt on MakerDAO
MakerDAO Functions
āļø Leverage - Borrows asset, converts to collateral and immediately deposits it back into MakerDAO.
šŖ Save - Swap asset to payback debt.
šāā©ļø Deposit and Borrow - Deposits asset from DSA to MakerDAO, and borrows asset. ā¤µļøā¬ļø Payback and Withdraw - Payback debt from DSA, and withdraws asset back to DSA
Vault Swap Strategies
š± Collateral Swap - Swap the underlying collateral asset for another collateral asset š± Debt Swap - Swaps owed debt from one asset into another debt to be owed