MakerDAO Loans Review
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
MakerDAO Overview
| APR Rates | 8% |
|---|---|
| Borrow Assets | DAI |
| Rate Variability | High Variable |
| Loan Amounts | $1 - $1,000,000 |
| Receive Funds | Stablecoin : Instant |
| Repayment Type | Interest Only |
| Available Loans | Stablecoins |
| Accepted Collaterals | ETH |
| Collateral LTV | 66% - 66% |
| Margin Call LTV | 66% |
| Collateral Insurance |  |
| KYC Check | No |
| Platform Fees | Margin Call Fee: 5% |
| Network Token | Maker |
| Token Benefits | Holding MKR comes with voting rights within MakerDAO to set APR rates and accepted collaterals. |
| Platform Type | Decentralized Lender |
| Credit Check | No |
| Supported Regions | All Countries |
| Excluded Regions | No Exclusions |
APR Rates
| Borrow Asset | APR Rate |
|---|---|
| DAIDAI | 8% |
Collaterals Accepted
| Collateral Asset | Collateral LTV |
|---|---|
| EthereumETH | 66% |
MakerDAO Crypto Loans Alternatives
Pros and Cons
Pros
- Transparency - All locked collateral, stability
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 - 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 -
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About The Author
Delton has been writing about blockchain finance & technology, decentralized applications, and crypto assets since 2017. His work has been published and featured by several independent news publications and blockchain projects.
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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.