MakerDAO MCD FAQs¶
Dai¶
- What is Dai?
- Why would I want to use Dai?
- How is the price of Dai kept stable?
- How can I generate Dai?
- Where can I buy Dai?
- Where can I see the amount of collateral that is backing Dai?
- What organizations are using Dai?
Dai Savings Rate¶
- What is the Dai Savings Rate?
- How does the DSR work?
- Are there any range limits to the DSR? Can it be negative or zero?
- Does Dai automatically earn the DSR?
- Is the DSR its own smart contract?
- When users lock Dai into the DSR, is that Dai pooled?
- Do DSR accruals compound or are they only earned on the principal?
- What is the formula for the expected accruals earned through the DSR?
- Will there be any constraints, like minimum lockup time or withdrawal limits?
- Does Dai earned by the DSR get calculated and paid out at the time of withdrawal, or is it continuously added to the user’s balance?
- How is the DSR being used by MKR token holders as a monetary policy tool?
- Where can someone find information to better understand the economic impact of the DSR?
- Does the DSR reduce the MKR burn rate?
- Are Stability Fees structurally higher due to the existence of the DSR?
- Where can I find more technical information about the DSR?
Emergency Shutdown¶
- What is an Emergency Shutdown?
- What happens during an Emergency Shutdown?
- Who can initiate Emergency Shutdown?
- When should Emergency Shutdown be used?
- Does hitting a Debt Ceiling warrant an Emergency Shutdown?
- Will the redemption of collateral for Vaults and Dai be immediate and automatic, or a manual process?
- Why is there a delay period before Dai holders can redeem collateral?
- Do both Dai holders and Vault owners need to redeem collateral?
- If collateral prices keep falling after the reference prices are frozen, doesn’t that mean people redeeming Dai and closing-out Vaults may experience a haircut?
- How quickly can an Emergency Shutdown be performed?
- What happens to MakerDAO after an Emergency Shutdown?
- Who can redeploy the system?
- Who decides how the system should be redeployed?
- What if multiple redeployments happen, who decides which one is legitimate?
- During Emergency Shutdown, will Vault owner’s collateral be given away to other people?
- Is there anything preventing MKR holders from triggering an Emergency Shutdown in order to avoid MKR dilution due to poor management?
- Can I create a Vault during an Emergency Shutdown?
- What happens to inaccessible Vaults and Dai?
- Are Stability Fees waived in the event of an Emergency Shutdown?
- How does Emergency Shutdown affect other Dapps?
- Has an Emergency Shutdown ever been performed in the past?
- How was testing for Emergency Shutdown done?
- How will Vault users and Dai holders be notified of Emergency Shutdown?
- Where can I find more technical information about Emergency Shutdown?
Governance¶
- What is Governance?
- How is the Maker Protocol governed?
- Is there more than one type of vote?
- What does a forum signal thread look like?
- Can anyone start a forum signal thread?
- What’s the difference between a forum signal thread and a regular forum poll?
- How does a forum signal thread proceed to an on-chain Governance Poll?
- When do Governance Polls happen?
- How long is the voting period of a Governance Poll?
- Where can I find on-chain Governance Polls?
- Can anyone create an on-chain Governance Poll?
- When do Executive Votes Happen?
- What is Continuous Approval Voting?
- Why is the Continuous Approval Voting System necessary?
- How Long is the Voting Period of an Executive Vote?
- Can anyone start an Executive Vote?
- Does anyone audit the code for the Executive Votes?
- What are hats, slates, and spells?
- How do MKR holders stay informed of governance issues?
- What do MKR holders vote on?
- How can I vote off-chain?
- How can I vote on-chain?
- How does the Maker Foundation’s Voting Portal work?
- What is a Voting Contract?
- How do I know my vote was placed?
- If a vote has already started can I still participate?
- Can I change my vote once I have placed it?
- How is the voting calculated?
- What are the different ways to set up the Voting Contract?
- What does voting with a linked wallet do for me?
- When setting up a linked wallet, what permissions am I granting?
- Does it cost gas every time I vote?
- When setting up a linked wallet, how much gas will I need and which wallet does it come from?
- What are IOU Tokens?
- When setting up a linked wallet, how many transactions do I have to sign?
- When setting up a single wallet, how many transactions do I have to sign?
- What happens to my MKR when I am voting?
- How do I know my MKR is in the Voting Contract?
- How do I withdraw my MKR from the voting contract?
- How does a withdrawal affect my previous votes?
- Do I need to withdraw MKR from the voting contract immediately after voting?
- Can I send MKR from my cold wallet to another address while it is locked in the voting contract?
- What happens if I send more MKR to my cold wallet after I link it?
- Can I break the link between my hot and cold wallet?
- Can I combine more than one address holding MKR to vote?
- How are proposals created?
- Where can I find more technical information about the Maker Protocol Governance mechanism?
Liquidation¶
- What is Liquidation?
- Why does Liquidation exist?
- Who triggers Liquidation?
- What is the Liquidation Ratio?
- What is the Liquidation Price?
- What is the Liquidation Penalty?
- Why is the Liquidation Penalty necessary?
- What happens during a Liquidation?
- How much collateral is left after a Liquidation?
- How do I calculate my Liquidation Price?
- How do I calculate my Collateralization Ratio?
- How do I lower my Liquidation Price?
- What are typical practices to avoid getting Liquidated?
- How would a flash crash affect the Liquidation of Vaults?
- Where can I view live information about Liquidations?
- Where can I find more technical information about Liquidations?
MKR Token¶
- What is MKR?
- What is the MKR token used for?
- How are MKR tokens created or destroyed?
- What responsibilities do MKR holders have?
- What voting rights do MKR holders have?
- What addresses hold the most MKR?
- Can MKR be used as a collateral type?
- Will MKR token dilution be able to cover all Dai if the value of their backing collateral goes to zero?
- How do I redeem old MKR?
- What happens to MKR in the event of an Emergency Shutdown?
- How much MKR is there?
Oracles¶
- What is an Oracle?
- How does the Oracle system work?
- How is the Oracle system made secure?
- What is an Oracle Security Module?
- Can MakerDAO governance change the time of the Oracle Security Module’s delay?
- What is a Medianizer?
- How often does the Medianizer publish an updated reference price?
- What is a Secure Scuttlebut Network?
- Why are Oracles an attack target for malicious actors?
- Who are the Feeds?
- Why are organizational Feeds public, while individual Feeds are pseudonymous?
- What is the process for becoming a Feed?
- Is the Oracle system resistant to Sybil attacks?
- What happens if there is a flash crash on an exchange?
- Where can I find more technical information about Oracles?
Stability Fee¶
- What is the Stability Fee?
- What is the purpose of the Stability Fee?
- When do I have to pay the Stability Fee?
- Do I have to pay the new fees on old debt in the case of a Stability Fee change?
- Why does the Stability Fee Change?
- How is the Stability Fee calculated?
- What does the system do with the collected fees?
- Where can I see my currently accrued Stability Fee?
- How can I calculate my potential Stability Fee?
- Where can I learn more about Risk Teams and how Stability Fees are determined?
- Is there a limit to how much a Stability Fee can change?
- How often do Stability Fees change?
- Where can I find more technical information about Stability Fees?
Vaults¶
- What are Maker Vaults?
- How does a Vault work?
- What is a Debt Ceiling?
- Are there different types of Vaults?
- What kind of collateral can I use?
- Who can open a Vault?
- Are there fees for using a Vault?
- What is the Collateralization Ratio?
- What risks are associated with owning a Vault?
- What are Common Practices to limit risk?
- How would a flash crash affect the Liquidation of Vaults?
- Where can I view live information about Liquidations?
- Where can I find more technical information about Vaults?