Southeast Asia DeFi Week -2 Day 7Event
Southeast Asia DeFi Week #2 hosted last week by Asia Blockchain Centre (ABC) recognised as the biggest virtual event in Asia for people to understand Decentralised Finance (DeFi) through an easy, fun, and rewarding way.
Finally, we have come to the last day of DeFi Week. We had DeFi panel Kevin Mago (DASH Next), Luke Jones (Blocksiders) & David Hoffman (Bankless) to help us unpack what you've learned the entire week.
MakerDAO is a decentralized organization built on Ethereum to allow lending and borrowing of cryptocurrencies without the need for a middle man. MakerDAO is made up of a smart contract service that manages borrowing and lending, as well as two currencies: DAI and MKR to regulate the value of loans. MakerDAO is a part of the "DeFi" movement - a catch-all term for financial tools and services that don't rely on centralized parties to coordinate and control access. MakerDAO wants to allow anyone to borrow money and reliably predict how much they had to pay back. MakerDAO is an organization developing technology for borrowing, savings, and a stable cryptocurrency on the Ethereum blockchain. It has created a protocol allowing anyone with ETH and a MetaMask wallet to lend themselves money in the form of a stable coin called DAI. By locking up some ETH in MakerDAO’s smart contracts users can create a certain amount of DAI the more ETH locked up, the more DAI can be created. When users are ready to unlock their ETH, which serves as collateral for their DAI loan, they simply pay back the loan along with any fees. Without credit checks and people keeping each other honest, how does borrowing even work on the blockchain? The answer is liquidation, meaning the moment an asset is converted into capital in order to pay off creditors. In other words, the ETH being used as collateral is sold off to repay the borrowed DAI plus penalties and fees. Liquidation and the threat of liquidation keeps the system stable by preventing people from borrowing too much. The creation of the new MKR is dependent on the stability of DAI. If DAI remains stable, more MKR is burned, decreasing the total supply. If DAI fluctuates too far from the one dollar peg, more MKR is created, increasing the total supply. MKR is available on major exchanges like OKEx and decentralized exchanges such as the Kyber network. Since holders of MKR benefit financially from a stable MakerDAO system, they are incentivized to act in the best interest of the MakerDAO protocol. As a result, MKR holders can vote on governance decisions such as how high to set fees and which collateral types can be accepted as collateral by the protocol. MakerDAO has become one of the flagship projects of the DeFi movement thanks to a series of high profile partnerships that's helped drive adoption. But like so much of this ecosystem, it's still early days, and the challenges MakerDAO, if it can overcome them, will only make it stronger.
Thanks to all the event partners, speakers, and participants for making this event successful. Southeast Asia DeFi Week will be back soon, stay connected with us via our social media!
Do check out the full video here: https://www.facebook.com/Asiablockchaincentre/videos/1407396236136454/