What is MakerDAO and how does it relate to the PSM?

3 answers

• Dec 29, 2021 · 3 years ago
  MakerDAO is a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. It is a platform that allows users to generate and manage the stablecoin called Dai. The PSM, or Peg Stabilization Module, is a tool within MakerDAO that helps maintain the stability of Dai's value by controlling its supply and demand. It allows users to exchange Dai for USDC (a stablecoin pegged to the US dollar) and vice versa. The PSM helps to keep the value of Dai close to its intended target of $1. By using the PSM, MakerDAO can effectively manage the supply of Dai and ensure its stability in the cryptocurrency market.
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• Dec 29, 2021 · 3 years ago
  MakerDAO is like a digital central bank, and Dai is its native currency. The PSM is one of the tools that MakerDAO uses to control the supply and demand of Dai. It helps to stabilize the value of Dai by allowing users to exchange it for USDC. This ensures that there is always a way to convert Dai into a stable US dollar equivalent, which helps to maintain its value. The PSM is an important component of MakerDAO's overall strategy to keep Dai stable and reliable in the cryptocurrency market.
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• Dec 29, 2021 · 3 years ago
  MakerDAO, a decentralized autonomous organization, is the creator of the stablecoin Dai. The PSM, or Peg Stabilization Module, is a mechanism within MakerDAO that helps maintain the stability of Dai's value. It does this by allowing users to exchange Dai for USDC at a fixed rate. This helps to control the supply and demand of Dai, ensuring that its value remains close to $1. The PSM is an important tool for MakerDAO in its mission to provide a stable and reliable cryptocurrency option.
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