Why is Maker (MKR) crypto up 35%?

Image Source: © Aksitaykut | Megapixl.com

Highlights 

  • Maker (MKR) is an Ethereum based governance token of Maker DAO (Decentralized organization) and Maker protocol (a software platform). 
  • It is used to issue and manage DAI stablecoin.
  • DAI is a community managed, decentralized, collateral-backed, an unbiased cryptocurrency which is soft-pegged to the US Dollar. 

The Maker (MKR) crypto jumped 35.44% to US$1,667.72 at 7:26 am ET on Wednesday. The gains come as the crypto firm helped execute a transaction for a beef shipment to Hong Kong.

So, here’s how the deal was executed.

On Wednesday, ConsolFreight financed a beef shipment from Brisbane to Hong Kong for Australia-based supply firm FreshSupplyCo (FSCO).

ConsolFreight used the Centrifuge protocol to finance the delivery. 

After the protocol sent an alert to ConsolFreight, suggesting all conditions are met to execute the seller payment, the finance company minted an NFT and a DAI from the Maker Vault

with a copy of the commercial invoice data using the Centrifuge protocol to make the payment.

The seller submitted all the required documents to FSCO using Mastercard Provenance. The client could also track the shipment status through Provenance, a blockchain tracking solution.

The transaction has been settled on the Ethereum blockchain. The Maker crypto soared after ConsolFreight used its vault to finance the shipment.

In a Twitter message, Maker said that Mastercard and FreshSupplyCo had urged the company to arrange for a faster, alternative payment mode to meet the growing demand.

The transaction has been executed with the help of TradFi and DeFi solutions.

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What Is Maker (MKR)?

Maker (MKR) is an Ethereum-based governance token for Maker DAO (Decentralized Organization) and Maker protocol (a software platform). It is used to issue and manage DAI stablecoins.

The Maker project, launched in 2017, is tasked to operate DAI, a community-managed, decentralized, collateral-backed cryptocurrency soft-pegged to the US dollar. It is supported on Ethereum and other blockchains. It is one of the earliest DeFi projects.  

Also Read: Why is Boba Network (BOBA) crypto drawing attention?

Data Source: coinmarketcap.com

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Maker allows token holders to participate in DAI’s governing process directly. They can vote on aspects like adding a new collateral asset type to the protocol, enabling them to submit new cryptocurrency to mint DAI, change DAI savings rate, platform up-gradation, etc.

The Maker Vault is a component of Maker Protocol to generate DAI against locked up collateral. Users generate DAI against their collateral and destroy it after repaying their DAI balance. Hence, DAI’s total supply changes depending on the Vault usage.

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The MKR token is ranked 43rd by market value by Coinmarketcap. It can be traded on crypto exchanges like Binance, Bybit, FTX, etc. It has a market capitalization of US$1.6 billion. Its total circulation is 977,631, and the total supply is 977,631.

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Bottom line:

The MKR’s trading volume rose 169.62% to US$567 million in the last 24 hours to Wednesday morning after the update. The broader crypto market fell over 9% at the same time.

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