Maker is a top decentralized lending protocol that lets anyone mint or redeem the DAI stablecoin by depositing crypto and tokenized assets as collateral.
Maker is a decentralized borrowing protocol that allows borrowers to draw loans against crypto assets like ETH as collateral. Loans are paid out in DAI, a USD pegged stablecoin with a collateralization ratio of at least 120%. The DAI peg is further supported by the Peg Stability Module (PSM). The PSM is a decentralized exchange that allows users to swap USD stablecoins for DAI at a 1:1 rate.
Maker collects a stability fee on all DAI generated through its smart contracts. The stability fee is a variable-rate fee that continuously accrues to the generated DAI by a user (must be paid in DAI). Part of the stability fee is set aside to sustain the protocol's operations including the Dai Savings Rate (DSR), risk teams, and other protocol costs. All surplus DAI collected from platform revenue including liquidation fees are deposited into the Maker Buffer. When the amount of DAI reaches a certain level, those funds are placed in a surplus auction whereby Maker uses the DAI to buy MKR governance tokens and burn them to reduce the circulating supply.
You can deposit crypto assets into the Maker vaults to mint DAI to be used across DeFi for lending and market making. The Oasis front-end app also offers a feature that allows you to earn Uniswap V3 higher trading fees with DAI through recursive leverage.