Best For

      Retail Borrowers
      Arbitrage Traders
      Blockchain Focused Companies & Businesses
      Hedge Funds & Market Makers

Maker is a decentralized lending platform powered by smart contracts on the Ethereum blockchain. Users lock their Ethereum in a CDP (Collateralized Debt Position) smart contract and are issued DAI as a loan. Security history, full transparency, global availability, and privacy have made Maker the most successful decentralized lending platform to date.

MakerDAO Crypto Loans - 2020 Comprehensive Review

Overall Score:

7.5
Trusted
Global Access:
10 of 10
Loan Options:
5 of 10
Easy of use:
6 of 10
Trust:
9 of 10
Fees & Rates:
8.5 of 10
Support:
7.5 of 10

MakerDAO Overview

APR Rates8%
Borrow AssetsDAI
Rate VariabilityHigh Variable
Loan Amounts$1 - $1,000,000
Receive FundsStablecoin : Instant
Repayment TypeInterest Only
Available LoansStablecoins
Accepted CollateralsETH
Collateral LTV66% - 66%
Margin Call LTV66%
Collateral InsuranceNo
KYC CheckNo
Platform FeesMargin Call Fee: 5%
Network TokenMaker
Token BenefitsHolding MKR comes with voting rights within MakerDAO to set APR rates and accepted collaterals.
Platform TypeDecentralized Lender
Credit CheckNo
Supported RegionsAll Countries
Excluded RegionsNo Exclusions

APR Rates

Borrow AssetAPR Rate
DAIDAI8%

Collaterals Accepted

Collateral AssetCollateral LTV
EthereumETH66%

MakerDAO Crypto Loans Alternatives

Rating7.5/108.5/108.5/10
Best Stablecoin APRDAI 8%USDC 3.85%USD 6.5%
Collateral LTV66%50% - 75%20% - 50%
Margin Call LTV66%80%70%
Fiat LoansNoNoYes
Collateral InsuranceNoNoNo
KYC CheckNoNoYes
Credit CheckNoNoNo
Learn MoreReviewReviewReview

Pros and Cons

Pros

  • Transparency - All locked collateral, stability
  • DAI - DAI is the only censorship resistant stablecoin available and can only be minted through the Maker CDP (Collateralized Debt Position) portal smart contract.
  • Global Availability - The MakerDAO CDP (Collateralized Debt Position) portal is a decentralized protocol built on top of Ethereum and is open to anyone with an internet connection.
  • Governance - Maker Dao is a decentralized organization that is governed by it’s token holders. MKR token holders can lock their tokens into a smart contract and vote on protocol upgrades and changes to the CDP platform.
  • Privacy - Maker is a decentralized protocol governed by smart contracts. Users are not required to register, KYC, or submit any personal identification documentation in order to access loan services.
  • Wallet Support - The MakerDAO CDP (Collateralized Debt Position) portal supports the following wallets, enabling a far more secure user experience: MetaMask, Ledger Nano S, Trezor, and Coinbase Wallet.

Cons

  • Balances Are Not Insured - Decentralized lending platform protocols do not operate under traditional finance licenses and regulations. It is the responsibility of the user to keep their wallet secure and understand that their crypto backed loans are not insured.
  • Smart Contract Risks - To date there have been absolutely no security issues with the Maker CDP (Collateralized Debt Position) smart contract. Of course, this is not an indication of future results and users should be aware that the higher returns are partly due to the risk involved in new and innovative financial products.
  • Native Ethereum Assets Only - The Maker CDP (Collateralized Debt Position) smart contract runs natively on Ethereum. As a result, only ERC-20 compatible assets are available on the platform.

Frequently Asked Questions

Is securing a loan on Maker safe?

What is a Collateralized Debt Position (CDP)?

Does Maker support crypto-to-fiat loans?

Does Maker require users to KYC in order to obtain a loan?

Are Maker loans insured?

Maker Loans Summary

MakerDAO is the first open finance protocol to launch on Ethereum and continues to play an essential role in the decentralized finance movement. Community governance, full transparency, an open source code base, and secure smart contracts have all contributed to the platform’s success.

While available globally with full transparency, crypto asset loans on the platform are currently only issued in DAI. This creates a moderately difficult user experience for entry level users when compared to other crypto lending platforms.

Blockfer recommends the MakerDAO platform for privacy focused users and individuals in countries with aggressive regulations.

Learn More Best Features

MakerDAO Official Website

  • No KYC Required. MakerDao is Currently The most decentralized crypto lender.
  • Borrow DAI with up to 66% LTV on Ethereum ETH.
  • Variable interest rates during the life of the loan; Loan APR rate may lower from what orgininally borrowed.

Legal & Regulation - Facts & Figures

Legal Name MakerDAO Foundation
Incorporated Country Switzerland
Headquarters Santa Cruz, CA United States
Year Founded 2014
CEO Rune Christensen
Total Employees 50-100
Regulators Not Regulated
Links Website, Crunchbase, Whitepaper, Source code, Twitter, Blog, LinkedIn

Methodology: How We Review And Compare

Our mission is to provide the most informative, unbiased, and useful reviews and comparisons possible for products and services in the blockchain finance industry. Assessments are powered by experts with years of relevant experience.

The crypto lending platforms found in this category have been tested extensively by our team as part of the review process. Factors we analyze in our crypto loan reviews and comparisons include: APY rates, available assets, loan amounts, loan options, LTV ratios, platform fees, reputation, ease of use, loan terms and fees, and customer support.

The Blockfer Promise: We do everything in our power to keep content up to date and in the best interests of our audience. Blockfer does not shy away from poor ratings. Products or services that do not meet our reputability standards will be rated as 'Not Trusted'. Compensation from partners does not, and will never, effect our review process.

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