Full List of Maker's Collateral Tokens & Assets

Full List of Maker's Collateral Tokens & Assets

By D3F1 | DeFi Box | 3 Nov 2020


MakerDAO is the governance body behind the DAI stablecoin. Users utilize the Maker protocol to take out loans in DAI by depositing collateral into the protocol. The mechanism behind the protocol is what ensures that the loans don’t default and leads to a stablecoin asset that remains stable around $1.00 without the need for a centralized party to maintain the peg;

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While fluctuations on the chart above might look serious, take note of the y-axis where DAI's price is heavily concentrated around $1. 

This is DAI over the past 3-months. How can a totally decentralized stablecoin asset remain so stable without any centralized services involved? 

The answer is simple.

It is backed by other cryptocurrency assets.

MakerDAO is very picky tho. They don’t just let any token onto their protocol to mint (and back) DAI. Being picky ensures that ‘unstable’ crypto-assets cannot support the DAI ecosystem.

For a new token to be added to the protocol, it needs to be voted by the decentralized governance body of MakerDAO. 

Let’s explore the timeline of all of the assets that have been added to the MakerDAO.

 

1. Ethereum - $ETH

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Debt ceiling: $560 million
Added when: First Collateral Upon Launch

Ethereum ($ETH) was the first collateral to be added upon the launch of MakerDAO. Ethereum is fitting, considering that MakerDAO is run on top of the Ethereum blockchain itself. The coin has a 2-6% stability fee with a minimum 150% collateral ratio.

2. Basic Attention Token - $BAT

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Debt ceiling: $10 million
Added when: August 2019

Basic Attention Token ($BAT) was the second collateral to be added to MakerDAO in August 2019. BAT is the token behind the Brave browser, which preserves privacy and blocks all advertisements for its users. Additionally, users are paid in BAT to view adverts on the Brave browser. BAT also comes with a 150% minimum collateralization ratio with a 4% stability fee.

3. USDC - $USDC

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Debt ceiling: $515 million
Added when: March 2020.

USDC ($USDC) was added as the third collateral type of the Maker Protocol in March 2020. USDC coin is a stable coin created by Circle and is a fully reserved digital dollar stablecoin. Launched in September 2018, USDC was birthed from a collaboration between Circle and Coinbase, and its reserves are fully collateralized by fiat currency. USDC has two options; USDC-A and USDC-B. USDC-A has a 4% stability fee with a 100% collateral ratio, and USDC-B has a 50% stability fee with a 120% collateral ratio. 

Adding USDC as collateral sparked a controversy within the community, as it's a centralized stablecoin backed by real USD. It was pointed out as a necessity after the black swan event in March 2020. 

4. Wrapped Bitcoin - $WBTC

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Debt ceiling: $120 million
Added when: May 2020

Wrapped Bitcoin ($WBTC) is an ERC-20 version of Bitcoin. Users deposit their BTC into a smart contract and receive WBTC, which is compatible with the Ethereum ecosystem. It was created to provide a method of integrating Bitcoin into Ethereum to use in DeFi platforms such as MakerDAO and lending platforms like Compound. WBTC requires a 150% collateral ratio with a 4% stability fee.

5. TrueUSD - $TUSD

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Debt ceiling: $135 million
Added when: June 2020

TrueUSD ($TUSD) is the second regulated stablecoin fully backed by the US Dollar and is transparent on the blockchain. It was created in Jan 2018 by a team from Stanford, UC Berkeley, Palantir, and Google. TUSD comes with a 4% stability fee and requires a 101% collateral ratio.

6. Kyber Network - $KNC

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Debt ceiling: $5 million
Added when: June 2020

Kyber Network ($KNC) is a DEX protocol that allows for the automated and decentralized swap of ERC-20 assets. It will enable users to swap ERC-20 tokens with low-fees on a simple interface easily. On top of this, Kyber is easily integrated into other platforms through one line of code. KNC comes with a 4% stability fee and requires a 175% collateral ratio.

7. 0x - $ZRX

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Debt ceiling: $5 million
Added when: June 2020

0x ($ZRX) is a decentralized exchange protocol for buying and selling ERC-20 tokens. Developers can use this protocol to create their decentralized exchanges to allow users to trade. 0x comes with a 4% stability fee and also requires a 175% collateral ratio.

8. MANA - $MANA

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Debt ceiling: $1 million
Added when: July 2019

MANA ($MANA) is the token behind Decentraland - a blockchain-based virtual reality platform. It is a virtual world where users can buy, develop, and sell lots of LAND (ERC-271 tokens) to represent ownership in digital land. $MANA has the smallest debt ceiling of just $1 million. It comes with the highest 12% stability fee and has a 175% collateral ratio.

9. Tether - USDT

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Debt ceiling: $10 million
Added when: September 2020

Tether ($USDT) is the largest stablecoin with a high level of liquidity. It is supposed to be 100% backed by USD, but the legitimacy of their funds remains a hot topic of discussion. For this reason, there is a small $10 million debt ceiling for USDT. It comes with an 8% stability fee with a 150% collateral ratio.

10. Paxos Standard - $PAX

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Debt ceiling: $100 million
Added when: September 2020

Paxos Standard ($PAX) is another stablecoin issued by Paxos Trust Company in September 2018. It is regulated by the New York State Department of Financial Services, and it was built to allow money to move fast. $PAX comes with a 4% stability fee and a 101% collateral ratio.

11. Compound - $COMP

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Debt ceiling: $7 million
Added when: September 2020

Compound ($COMP) is the token behind the Compound Finance protocol that allows users to borrow/lend cryptocurrency assets. Users who borrow funds from Compound Finance must pay an interest fee, which lenders receive on the protocol. $COMP comes with a 3% stability fee and requires a 175% collateral ratio.

12. Loopring - $LRC

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Debt ceiling: $3 million
Added when: September 2020

Loopring ($LRC) is another decentralized exchange protocol that allows users to swap ERC-20 tokens easily. Loopring is blockchain agnostic, so any platform that can deploy smart contracts can integrate into Loopring. $COMP comes with a 3% stability fee and requires a 175% collateral ratio.

13. Chainlink - $LINK

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Debt ceiling: $5 million
Added when: September 2020

Chainlink ($LINK) is a decentralized oracle service for cryptocurrency projects. It provides price feeds, and off-chain data feeds integrated into blockchains to help trigger and execute smart contracts. $LINK comes with a 3% stability fee and requires a 175% collateral ratio.


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