MakerDAO

MakerDAO is the protocol behind DAI, the first decentralised stablecoin backed by crypto collateral rather than dollars in a bank. Users mint DAI by locking ETH, WBTC, or other approved assets in CDPs (Maker calls them Vaults) at an over-collateralised ratio. The $1 peg is maintained through two mechanisms: liquidations when collateral falls, and the PSM (Peg Stability Module) which lets anyone swap USDC for DAI 1:1 as an arbitrage floor. Governance happens through DAO votes weighted by the MKR token — changing collateral types, risk parameters, fees. The one wrinkle that complicates the "decentralised" story: most DAI today is backed indirectly by USDC through the PSM, which means DAI's peg ultimately depends on Circle. Maker has been pivoting (the "Endgame" plan, real-world assets) to reduce that dependence.