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Ethereum chip maker (MKR) outperformed all markets with a 37% gain since February.
Ranking 16th on the market capitalization of CoinMarketCap, the 1 MKR was valued at 4.6 ETH on February 14th – the highest level since October 8th – and was valued at 4.37 ETH for the last time. This decline is probably badociated with profit taking after jumping to the top of 129 days.
MakerDAO is an intelligent contract platform on the ethereum chain chain, backed by the value of DAI (DAI) – its native stablecoin, which is backed up to the ether and whose value is fixed at 1 USD – via a system secured positions (CDP). This loan payment system uses an Ethereum's Ether Token (ETH) as collateral, which is necessary for the governance of DAI throughout the Maker ecosystem.
Currently down 5.39% from its recent high, MKR still outperformed during the month, continuing its climb from the highs of the previous month, a sign that the bear market structure is starting to weaken.
Creator tokens are created or destroyed based on certain price fluctuations in the DAI coin to keep it as close as possible to $ 1. The platform has had incredible success in the market of bearish cryptometers: about 2% of all Ethereum are now blocked in MakerDAO. loans.
The chart above shows the significant fluctuations in MKR's price since before the start of the year, with a recent high-high trend drawing and 2019 candles printing larger bodies while liquidity is more abundant on the market .
Pooled Ether (PETH)
As part of the system, users group their ether automatically and receive DAI.
Currently, 1,970,339.45 ETHs are locked into the Main Contract Maker, which represents about 1.87 percent of all 104 862 328 ETH in circulation – well above 1% in November.
DAI tends to be over-collateralised by more than 200%. Thus, for every DAI created, there is at least $ 2 to $ 3 of ETH stored in the CDP. As a result, when the ETH price falls, more of this cryptocurrency must be locked in order to maintain the DAI guarantee. MKR tokens are also used to pay transaction fees on the Maker system and to provide voting rights holders with Maker's "continuous approval voting system".
Evolution of market
MakerDAO recently made the decision to increase its stability fee from 0.5% to 1% in order to reduce and smooth dollar price movements by DAI, a welcome decision, considered by many as a positive step towards greater economic badurance and greater stability on the part of the team. .
It should also be noted that Unwap, an Ethereum automated trading protocol, has overtaken the Ethfinex market this week, as the first trading venue for MKR / ETH transactions, with a value of more than USD 329,000 traded on a period of 24 hours.
The stock market offers a discounted price, while other stock exchanges have MKR listed on the premium, paving the way for arbitrage trading between Ethfinex and Uniswap.
In the long run, this gap should begin to narrow, as buying on Uniswap and selling on Ethfinex will result in long-term price convergence, but for the moment, Maker still has a chance to exceed expectations.
Disclosure: The author does not hold any cryptocurrency at the time of writing.
Win the image of the race via Shutterstock
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