What is MakerDAO?

Decentralized finance (DeFi) has become a credible alternative to traditional banking. Among the most famous projects, MakerDAO holds a special place: it is one of the pioneers of DeFi and the creator of the DAI stablecoin, used worldwide.

But for an individual, MakerDAO remains complex: managing collateral, technical parameters, and understanding stability mechanisms can be intimidating. This is where platforms like Coinstancy change the game, making MakerDAO’s opportunities accessible without diving into the technical details.

MakerDAO and the DAI stablecoin

MakerDAO is a decentralized autonomous organization (DAO) founded in 2015. Its main purpose is to enable the creation and management of the DAI stablecoin, pegged to the US dollar.

Unlike USDT (Tether) or USDC (Circle), which are issued by centralized companies, DAI is generated in a decentralized way:

• Users deposit digital assets (ETH, WBTC, USDC, etc.) into vaults called Maker Vaults.
• In return, they can mint DAI, a stablecoin used throughout DeFi.
• To ensure stability, deposits must be over-collateralized (for example: deposit $150 in ETH to generate 100 DAI).

This mechanism keeps DAI close to $1 in value.

👉 The challenge: opening a Maker Vault, choosing collateral, and managing liquidation ratios is not simple for beginners.

That’s why Coinstancy integrates DAI and other stablecoins into its products, letting individuals benefit from them without having to use MakerDAO directly.

The strengths of MakerDAO

MakerDAO has played a foundational role in DeFi. Its main strengths are:

• A decentralized stablecoin 💵: DAI is one of the few stablecoins not controlled by a single company.
• A proven protocol ⏳: active since 2015, it has withstood several market crashes.
• Community governance 🗳️: holders of the MKR token participate in decisions (collateral types, interest rates, etc.).
• Massive adoption 🌍: DAI is accepted on almost every DeFi platform.

It is, therefore, an essential infrastructure in the crypto ecosystem.

But for an individual, all this remains theoretical and difficult to apply. That’s where Coinstancy brings real value.

The limitations for beginners

Despite its strengths, MakerDAO has limitations for regular users:

• Technical complexity 🤯: opening a vault, monitoring collateral ratios, and understanding liquidation risks.
• Variable costs 💸: Ethereum network fees and interest rates set by the DAO.
• Market risks ⚠️: if collateral prices drop too fast, positions may be liquidated.
• No direct support: MakerDAO is infrastructure, not a user-friendly platform.

👉 Result: most beginners never use MakerDAO directly, even if they often hear about DAI.

How Coinstancy simplifies MakerDAO

This is where Coinstancy positions itself as a bridge between theory and practice.

• No need to open a Maker Vault: Coinstancy does it through integrations.
• No need to monitor collateral: Coinstancy selects the most stable and secure strategies.
• No need to master technical parameters: Coinstancy turns MakerDAO (and other DeFi protocols) into simple products.

For example:

• By depositing stablecoins into a Coinstancy savings pool, you indirectly benefit from DeFi yields (including MakerDAO’s) but with a simple interface.
• By choosing a thematic pool, Coinstancy diversifies across several protocols (including MakerDAO), reducing risks and simplifying the experience.

In short: Coinstancy brings MakerDAO’s power within everyone’s reach.

Why Coinstancy is a better entry point

The question isn’t whether MakerDAO is useful (it is), but whether it’s accessible to all.

Coinstancy makes it possible because:

• Simplicity 🟢: no technical knowledge required.
• Stable yield 📈: up to 7% per year on stablecoins.
• Security 🔒: Fireblocks custody and carefully selected protocols like MakerDAO.
• No hidden fees ✅: all yield goes to users.

Instead of venturing into MakerDAO vaults alone, anyone can enjoy the same benefits with just a few clicks on Coinstancy.

Conclusion

MakerDAO is a pillar of decentralized finance, creator of the DAI stablecoin and a major innovator in DeFi. But for individuals, using it directly remains complicated.

That’s why Coinstancy is the ideal gateway: it gives you access to MakerDAO (and other DeFi protocols) without technical headaches.

💡 With Coinstancy, you enjoy real yields on your stablecoins, through a secure and user-friendly app.

Frequently asked 🤔

What is DAI?

DAI is the stablecoin issued by MakerDAO, pegged to the US dollar and backed by digital assets deposited as collateral. It is widely used across DeFi.

What are the risks of MakerDAO?

The main risk is liquidation if collateral prices drop too quickly. There are also technical risks from smart contracts, although the protocol has proven itself for years.

Can you use MakerDAO directly?

Yes, but it requires technical knowledge and active collateral management. For most individuals, this remains too complex.

How does Coinstancy integrate MakerDAO?

Coinstancy selects and integrates MakerDAO among its DeFi partners. Users simply deposit stablecoins in the app and gain exposure to DAI and DeFi yields without technical steps.

Why choose Coinstancy instead of MakerDAO directly?

Because Coinstancy simplifies the experience: no vault setup, no collateral management, no hidden fees. Users get MakerDAO’s benefits through a secure, intuitive app.