MakerDAO: What It Is, How It Works, and Why It Still Matters in 2025

When you hear MakerDAO, a decentralized autonomous organization that issues and manages the DAI stablecoin on Ethereum. Also known as the Maker Protocol, it’s one of the oldest and most trusted systems in DeFi—built to keep DAI pegged to the US dollar without banks or middlemen. Unlike centralized stablecoins like USDT or USDC, DAI doesn’t rely on a company holding cash in a bank. Instead, it’s created by locking up crypto like ETH or BTC as collateral in smart contracts. If the value of your collateral drops too much, the system automatically sells part of it to keep DAI stable. No CEO decides the rules. No central server can shut it down. It just runs.

MakerDAO doesn’t just make DAI. It’s also the engine behind collateralized debt positions, a way for users to borrow DAI by locking up crypto as security. Think of it like a crypto-backed loan you can take out without giving up your assets. You lock ETH, get DAI, and keep your ETH in case its price goes up. This system powers everything from margin trading to DeFi yield farming. And because it’s built on Ethereum, the blockchain where most DeFi apps run, it connects to hundreds of other protocols—lending platforms, exchanges, and even NFT marketplaces. That’s why even when new DeFi projects come and go, MakerDAO stays in the background, quietly keeping the system running.

But it’s not perfect. The system has had to adjust dozens of times—changing collateral types, adjusting fees, even pausing in emergencies. In 2020, when ETH crashed 50% in a day, thousands of positions got liquidated. MakerDAO survived because its governance voted to act fast. That’s the real power: people, not code, make the calls. And in 2025, with more stablecoins competing and regulators watching closely, MakerDAO’s ability to adapt is what keeps it alive. You won’t find flashy marketing or celebrity endorsements. But if you’re using DAI to trade, lend, or move value across borders, you’re already relying on it.

Below, you’ll find real reviews, breakdowns, and warnings about platforms and tokens connected to MakerDAO—from DAI integrations to DeFi tools that use its system. Some are still active. Others are dead. All of them show how MakerDAO’s influence stretches far beyond its own smart contracts.