AdirizeDAO and MakerDAO are two huge prospects for DeFi because of their stablecoin solutions' potential for the DeFi landscape. The DeFi market is a landscape for seasoned crypto investors who know how to interact with smart contracts and handle several digital assets. The ordinary retail investor has yet to access the DeFi sector due to significant knowledge barriers, which will likely alter in the future. The DeFi market of the future will allow anybody on the planet to access a decentralized, global financial marketplace that offers all of the services that traditional financial institutions do, and projects like AdirizeDAO will spearhead this progress.
Stablecoins play a huge role in the DeFi market; they allow investors to earn a return on their crypto assets on the DeFi market while minimizing the possible negative impacts of market volatility. There is a chance that an ETH price decline may cancel out the return generated if an investor deposits ETH into a DeFi protocol and, as such, leaves the investor with a loss. However, if the same investor utilized a stablecoin, such as USDC, the underlying asset's value would stay stable, and the cryptocurrency market volatility would not impact the yield.
However, most stablecoins like USDT and USDC have too many centralized institutions' influence, and crypto enthusiasts fear it may not be good for the landscape. Hence, AdirizeDAO proposes the solution of pegging stablecoins to a decentralized reserve protocol which will turn out to be more reliable than centralized USD, which is prone to depreciate. MakerDAO is one of the first protocols to do this as the protocol manages the decentralized stablecoin, DAI, but we need more options and innovative features.
MakerDAO is an ethereum-based global reserve bank for the Maker protocol. With smart contract automation, the Maker protocol facilitates the collateralization and lending of its stablecoin, DAI. The protocol does not require any central body to carry out its activities while it operates with the typical banking model. Most of the issues in financial institutions involving central banks and fiat currency holders have been solved in Maker protocol with the issuing of DAI.
DAI is a collateralized stablecoin, meaning that a certain amount of ETH is secured in Maker smart contracts. A user can mint the equivalent amount of DAI against this collateral. The protocol may raise or lower interest rates, identify good assets for use as collateral, raise or lower the overall debt ceiling, and encourage or dissuade saving by decentralizing central bank design to all MKRholders. All MKR holders have a stake in governance instead of a small group of technocrats used in financial institutions.
AdirizeDAO will serve as the governance body for the Adirize Protocol. The Adirize Protocol will power decentralized finance services across staking, bonding, inverse bonds, etc. The Adirize ecosystem would have its own liquidity instead of relying on users to provide liquidity. This will enable the protocol to protect its long-term value, especially in poor market conditions when users are more likely to take out their money.
The community holders still control this liquidity, but most of it is usually bought from users while issuing them discounted ADI tokens. ADI token is the reserve currency of this decentralized protocol, and it will power services across crypto lending, borrowing, and saving.
The ultimate objective of Adirize is to develop into a decentralized, community-driven system. The DAO has a consensus mechanism that will give token owners voting privileges and authority proportional to the number of tokens they possess. They will be able to discuss, suggest, and vote on any changes to the Adirize ecosystem. Anyone having a good notion of how the platform can operate more effectively will be able to upgrade. As a result, they will receive the appropriate compensation from the network. Ultimately, the protocol aims to help ADI become a decentralized stablecoin that helps most of the crypto landscape with their daily transactions.
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