  This paper discusses a decentralized finance (DeFi) application called
MakerDAO. The Maker Protocol, built on the Ethereum blockchain, enables users
to create and hold currency. Current elements of the Maker Protocol are the Dai
stable coin, Maker Vaults, and Voting. MakerDAO governs the Maker Protocol by
deciding on key parameters (e.g., stability fees, collateral types and rates,
etc.) through the voting power of Maker (MKR) holders. The Maker Protocol is
one of the largest decentralized applications (DApps) on the Ethereum
blockchain and is the first decentralized finance (DeFi) application to earn
significant adoption. The objective of this paper is to analyze and discuss the
significance, uses, and functions of this DeFi application.
