Glossary of Terms

A

B

C

Collateral

  • assets locked in a Vault

Collateral Auction

  • a type of auction that serves as a means to recover generated Dai from Liquidated Vaults

Collateral Claims

  • the amount of redeemable collateral Dai holders and Vault owners have claim to in the event of an Emergency Shutdown

Collateralization Ratio

  • the ratio between a Vault's collateral and the Dai generated by that Vault

Continuous Approval Voting

  • a voting design that involves leaving your vote in the governing proposal, moving your vote only when you wish to support a new proposal

D

Dai

  • USD pegged decentralized stablecoin of the Maker Protocol

Dai Savings Rate

  • a variable return that is earned by holding Dai in the DSR smart-contract

Debt Auction

  • a type of auction that serves as a means to recapitalize the system by auctioning off MKR for a fixed amount of Dai

Debt Ceiling

  • the maximum amount of Dai that can be generated in the Maker Protocol per collateral type

Decentralized Risk Management

  • the cooperative interaction between Maker Token Holders and all Risk Teams to manage risks in MakerDAO

Development Fund

  • another name for the Maker Foundation’s multisig wallet that contains MKR, which is sold for operational expenses

E

Emergency Shutdown

  • a security feature that allows the system to shut down and make underlying collateral available for redemption by Vault owners and Dai holders

Executive Vote

  • a continuous approval vote that executes changes in the system if passed

F

Feed

  • an organization or individual that runs a price-feed that is used the Maker Protocol's Oracle system

G

Generated Dai

  • the amount of Dai generated against one's collateral using a Maker Vault

Global Debt Ceiling

  • the maximum amount of Dai that can be generated in the Maker Protocol

Governance Facilitator

  • an elected role that is responsible for supporting MakerDAO's governance process

Governance Poll

  • a time-based vote to gather soft consensus

Governance Portal

  • a front-end application that allows you to interact with MakerDAO's on-chain governance

Governance Security Module

  • a security feature of the Maker Protocol that delays certain governance actions by a predetermined amount of time

H

I

Interim Risk Team

  • the first Risk Team whose role is to help bootstrap the Decentralized Risk Management function

J

K

Keeper

  • external actors who perform various functions in the Maker Protocol

L

Liquidation

  • an automated sale of a Vaults collateral to cover its Generated Dai balance

Liquidation Penalty

  • a penalty fee that's applied to a Vault's Generated Dai balance when it is liquidated

Liquidation Price

  • lowest price per unit of collateral before a Vault is vulnerable to liquidation

Liquidation Ratio

  • a risk parameter defining the minimum Collateralization Ratio below which a Vault is vulnerable to liquidation

M

Maker Foundation

  • the organization that was created to develop and bootstrap the Maker Protocol

Maker Protocol

  • a name that describes the entire smart-contract system of MakerDAO, also known as Multi-Collateral Dai

Market-Maker

  • an agent that provides liquidity to a market by offering both bids and asks at a spread for a given asset

MCD

  • acronym for Multi Collateral Dai

MKR

  • governance token of MakerDAO

Multi Collateral Dai

  • the upgraded Maker Protocol that facilitates the use of multiple collateral types in Vaults

N

O

Oracle

  • a mechanism which makes off-chain data, such as price data, available on-chain for use in smart-contracts

Oracle Security Module

  • a security mechanism that delays and publishes the reference price produced by the Oracle System

P

Price-Feed Delay

  • a risk parameter that controls the delay of the reference prices published by the Oracle system

Proposal

  • a written plan put forward for a vote

Q

R

Reference Price

  • the published price of an asset that is produced by the Maker Protocol's Oracle system and that is used for calculations in the Maker Protocol

Risk Construct

  • a collection of data, risk models, outputs, documentation, and analysis

Risk Model

  • an analytical model measuring and predicting risk, including the input data and output of the model

Risk Parameters

  • a set of configurable, risk-related, variables used to manage the system

Risk Team

  • an independent party who creates a Risk Construct and proposes Risk Parameters to MakerDAO Governance

S

Sai

  • a stablecoin similar to Dai that was produced from the Single-Collateral Dai version of the Maker Protocol

SCD

  • acronym for Single Collateral Dai

Single Collateral Dai

  • the former version of the Maker Protocol which solely accepted ETH as collateral

Soft-peg

  • relating the target value of a cryptocurrency to the absolute value of a fiat currency, allowing for some variance

Stability Fee

  • a variable Fee charged to a Vault for the generation of Dai, set by MKR holders through the governance of the Maker Protocol

Surplus Auction

  • a type of auction that serves as a means to sell a fixed amount of surplus Dai in the system in exchange for MKR that is then burned

T

Time-Based Voting

  • a voting design that ends a vote at a predetermined time

U

V

Vault

  • a core component of the Maker Protocol that facilitates the creation of Dai against locked up collateral, there are different Vault types users can utilize

Voting Contract

  • a smart-contract that allows MKR holders to vote with their tokens

Vote Proxy Contract

  • a smart-contract that makes linked wallet voting possible, allowing MKR token holders to vote with their hot wallets using MKR that is stored on their cold wallets

W

X

Y

Z