MakerDAO: Multi Collateral Dai

MakerDAO is a credit facility and synthetic issuance platform serving as the de facto central bank for the Ethereum-based Open Finance ecosystem. At the heart of MakerDAO is the Dai token, a synthetic asset with a soft peg to the US dollar, affording risk-averse agents all the advantages of cryptocurrencies — censorship resistance, permissionless access, cross-border value transfer, etc. — without the volatility. 

The MakerDAO system revolves around the Collateral Debt Position (CDP) product. In order to mint Dai, users must first lock collateral — currently in the form of Ether — in a CDP. Once locked, users can borrow against the value of their Ether. CDP holders must maintain a certain collateralization ratio — currently 150% — in order to avoid liquidation. In the event that the value of the CDP holders Ether falls below 150% of the value of their Dai denominated debt, a third party ‘keeper’ can step in and trigger liquidation of their collateral.