BakerDAO Introduction
BakerDAO is an upgraded version of MakerDAO protocol on Binance Smart Chain(BSC) run by different community. It is a multi-collateral decentralized stablecoin borrow system on BSC, which allow users to borrow decentralized stablecoin BAI by leveraging collateral assets like BNB, BUSD, ETH, BTC and so on. Excess collateral, self-balance system, liquidators and other ecosystem participants ensure that 1 BAI is soft-pegged to 1 USD. In addition, BakerDAO is non-custodial and completely decentralized, in which all processes are completed based on smart contracts on BSC. No one is entitled to use collateral assets or issue BAI and BKR arbitrarily.
BAI is a decentralized, unbiased, collateral-backed and stable currency issued by the BakerDAO system according to the borrow protocol, which is soft-pegged to the US dollar. With very low volatility, BAI can resist hyperinflation, ensure economic freedom and provide opportunities for anyone anywhere.
BKR is the decentralized governance token of BakerDAO, and its holders can use it to initiate proposals and vote to govern the major events or decide development directions for BakerDAO. For instance, the holders can modify such parameters as the stable fee rate and liquidation rate of collaterals, and they also have options for what type of new collaterals to support.
Besides, BakerDAO is a decentralized stablecoin as well as a safe and reliable decentralized lending protocol. Currently, the amount of stablecoin DAI of MakerDAO on Ethereum has reached nearly 5 billion US dollars, which are all issued through collateral cryptocurrency, and the marketcap of the governance currency MKR market cap has also reached nearly 5 billion US dollars. MakerDAO is the most complicated and largest decentralized application in the DeFi world so far. BakerDAO will certainly make another splendid achievement with its enormous market potential by relying on the high efficiency and low gas fee of the BSC chain and the innovative economic model .
Last updated