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WHAT IS MAKERDAO CLASSIC?

OVERVIEW OF THE DAI STABLECOIN SYSTEM

Popular digital assets such as Bitcoin (BTC) and Ether (ETH) are too volatile to be used as everyday
currency. The value of a bitcoin often experiences large fluctuations, rising or falling by as much as
25% in a single day and occasionally rising over 300% in a month. The Dai Stablecoin is a collateral-
backed cryptocurrency whose value is stable relative to the US Dollar. We believe that stable digital
assets like Dai are essential to realizing the full potential of blockchain technology. Unlike other
Stablecoins, Dai is completely decentralized. Users can obtain Dai by buying it from brokers or
exchanges, and Dai holders can utilize a special mechanic known as the Dai Savings Rate to earn a
steady, low-risk return on their holdings.

Maker Classic is a smart contract platform on Ethereum that backs and stabilizes the value of Dai
through a dynamic system of Collateralized Debt Positions (CDPs), autonomous feedback
mechanisms, and appropriately incentivized external actors.

Maker Classic enables anyone to leverage their Ethereum assets to generate Dai on the Maker and
Maker Classic Platform. Once generated, Dai can be used in the same manner as any other
cryptocurrency: it can be freely sent to others, used as payments for goods and services, or held as
long term savings. Importantly, the generation of Dai also creates the components needed for a
robust decentralized lending platform.

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WHY MAKERDAO CLASSIC?

How does it work?

 You deposit/send Ether to Maker’s smart contract, creating a Collateralised Debt
Position (CDP).

 For example, you deposited 1 ETH (worth $100), this will allow
you to take up to 40 DAI (assuming a 150% collateralisation
rate $100/1.50) against your $100. However, if the price of
Ether drops below $100 your CDP will be forcefully closed. To
stop this from happening you need to put in more Ether or take
out less DAI in the first place. This is to ensure there’s always enough
capital locked against the amount of money being taken out.

 If you want your Ether back, you need to pay back the amount you took out with
the addition of a minor fee.

COLLATERALIZED DEBT POSITION SMART CONTRACTS

Anyone who has collateral assets can leverage them to generate Dai on the Maker Classic Platform
through Maker Classic’s unique smart contracts known as Collateralized Debt Positions. A Collateral
Asset is a digital asset that the decentralized Maker Classic Governance process has input into the
system. CDPs hold collateral assets deposited by a user and permit this user to generate Dai, but
generating Dai also accrues debt. This debt effectively locks the deposited collateral assets inside the
CDP until it is later covered by paying back an equivalent amount of Dai, at which point the owner
can again withdraw their collateral. Active CDPs are always collateralized in excess, meaning that the
value of the collateral is higher than the value of the debt.

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THE CDP INTERACTION PROCESS

 Step 1: Creating the CDP and depositing collateral

The CDP user first sends a transaction to Maker to create the CDP, and then sends another
transaction to fund it with the amount and type of collateral that will be used to generate Dai.
At this point the CDP is considered collateralized.

 Step 2: Generating Dai from the collateralized CDP

The CDP user then sends a transaction to retrieve the amount of Dai they want from the CDP,
and in return the CDP accrues an equivalent amount of debt, locking them out of access to
the collateral until the outstanding debt is paid.

 Step 3: Paying down the debt and Stability Fee

When the user wants to retrieve their collateral, they have to pay down the debt in the CDP,
plus the Stability fee that continuously accrue on the debt over time. The Stability Fee can only
be paid in MKR (or DAI if using the CDP Portal UI). Once the user sends the requisite Dai and
MKR to the CDP, paying down the debt and Stability Fee, the CDP becomes debt free.

 Step 4: Withdrawing collateral and closing the CDP

With the Debt and Stability Fee paid down, the CDP user can freely retrieve all or some of their
collateral back to their wallet by sending a transaction to Maker.

SINGLE-COLLATERAL DAI VS MULTI-COLLATERAL DAI

Dai currently supports only one type of collateral, Pooled Ether. We plan to upgrade Single-
Collateral Dai to Multi-Collateral Dai. The primary difference is that it will support any number
of CDP types. At first, Pooled Ether (PETH) will be the only collateral type accepted on Maker. Users who wish to
open a CDP and generate Dai during the first phase of the Maker Platform need to first obtain PETH. This is done
instantly and easily on the blockchain by depositing ETH into a special smart contract that pools the ETH from all
users, and gives them corresponding PETH in return.

If there is a sudden market crash in ETH, and a CDP ends up containing more debt than the value of its collateral,
the Maker Platform automatically dilutes the PETH to recapitalize the system. This means that the proportional
claim of each PETH token goes down relative to the total pooled ETH. After the Maker Platform is upgraded to
support multiple collateral types, PETH will be removed and and instead regular ETH will be usable as collateral
alongside other new collateral types.

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TOKEN DISTRIBUTION

TOKEN OVERVIEW

Token MKRC
Symbol :
Total 12,000,000
Supply :
Token $5 USD
price :
Decimals : 8
Platform : Ethereum (ERC20)
Contract 0xa072be0db9d639fcbcdeed0eca496750ad3d2029
Address :

The MKRC token is an ERC-20 standard-based Ethereum token. We issued a fixed amount of 12 million
MKRC tokens (MKRC — an ERC-20 token with 8 decimal places). The total token supply is 12,000,000
MKRC tokens.

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ROADMAP - MAKERDAO CLASSIC TIMELINE

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MAKER EXPERTS – OUR TEAM

MKRC AND MULTI-COLLATERAL DAI

After the upgrade to Multi-Collateral Dai, MKRC will take on a more significant role in the Dai
Stablecoin System by replacing PETH as the the recapitalization resource. When CDPs become
undercollateralized due to market crashes, the MKRC supply is automatically diluted and sold off in
order to raise enough funds to recapitalize the system.

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WHAT IS THE ICO?

ICOs are basically blockchain crowdsales, the cryptocurrency version of

crowdfunding. The ICOs have been truly revolutionary and have
managed to accomplish many amazing tasks:

 They have provided the simplest path by which DAPP developers

can get the required funding for their project.
 Anyone can become invested in a project they are interested in by
purchasing the tokens of that particular DAPP and become a part
of the project themselves.

It was in July 2014 when ICOs well and truly came into the public’s
attention. That was when the ICO Ethereum raised $18.4 million and
ushered in a new age of ICOs. If you are searching for the biggest trend
in cryptocurrency today, a look at Initial Coin Offering (ICO) might be a
good start. The idea to presale coins of a cryptocurrency or token of a
blockchain project has evolved in a crazy successful instrument to raise
funds for the development of a new application. The amount of money
that ICOs have raised over the last two years is truly astonishing. In 2017,
ICOs raised a total of $5.6 billion. If that sounds shocking to you then think
about this. ICOs have already raised $6.3 billion, 4.5 months into 2018
alone!

WHAT IS ICO WHITEPAPER ?

It is a concisely written piece of documentation which presents the problem that the
project is aiming to solve and the method that they will be following in order to solve
it. Upon reading the white paper, the potential investors can choose to invest or not
in the project.

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TOKEN SALE

Token Sale is a modern method of crowdfunding that allows us to

issue Digital Tokens in exchange for investments. This token sale
event allows participants to contribute to Maker Classic and receive
MKRC tokens. The maximum MKRC token supply is 12 million
tokens. During the Token Sale, the Token exchange rate will be as
follows: 1 MKRC =$5 USD. The minimum purchase amount is 0.1
ETH. Early contributors of MKRC receive a extra bonus during the
Pre-Sale round. All unsold tokens will be burned at the end of the
ICO. All Tokens will be of equal value and functionality. To buy
MKRC tokens you will need to send a desired amount of ETH to
the Maker Classic Smart Contract address. Never send ETH to any
address other than what we publish on the Buy Token page of this
website (https://makerdaoclassic.com) or whitepaper. The exchange
rate is updated for each investment during Token sale ( We use
Etherscan.io for ETH exchange rate).

OUR CONTRACT ADDRESS:

0XA072BE0DB9D639FCBCDEED0ECA496750AD3D2029

https://etherscan.io/token/0xa072be0db9d639fcbcdeed0eca496750ad3d2029

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NUMBER OF BLOCKCHAIN WALLET USERS GLOBALLY 2015-2018

The number of Blockchain wallets has been growing since the creation of the Bitcoin virtual currency in

2009, reaching nearly 32 million Blockchain wallet users at the end of December 2018. Blockchain is
the technology that made Bitcoin popular and is a critical part of most cryptocurrencies. A “block” in
this case refers to a record of the owners of all bitcoins, as well as the previous owners. Since this
“chain” of ownership is distributed globally, it is extremely difficult to alter the ownership records.

WHAT IS A WALLET?

A “wallet” in the digital sense implies a layer of security known as “tokenization”. The user stores his or
her personal data with the wallet provider in a digital account, or wallet. This provider sends payment
information to vendors in the form of a token. This token, instead of containing the personal
information of the account owner, only holds enough information for the wallet provider to associate
the transaction with the correct account, usually an account number.

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WHAT IS CRYPTOCURRENCY AND HOW CRYPTOCURRENCIES EMERGED
AS A SIDE PRODUCT OF DIGITAL CASH

Few people know, but cryptocurrencies emerged as a side product of another invention. Satoshi Nakamoto, the
unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a
currency.In his announcement of Bitcoin in late 2008, Satoshi said he developed “A Peer-to-Peer Electronic Cash
System.“

His goal was to invent something; many people failed to create before digital cash. Announcing the first release
of Bitcoin, a new electronic cash system that uses a peer-to-peer network to prevent double-spending. It’s
completely decentralized with no server or central authority. – Satoshi Nakamoto, 09 January 2009, announcing
Bitcoin on SourceForge.

The single most important part of Satoshi‘s invention was that he found a way to build a decentralized digital cash
system. In the nineties, there have been many attempts to create digital money, but they all failed. After seeing
all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-
Peer network for file sharing. This decision became the birth of cryptocurrency. They are the missing piece Satoshi
found to realize digital cash. The reason why is a bit technical and complex, but if you get it, you‘ll know more
about cryptocurrencies than most people do. So, let‘s try to make it as easy as possible:

To realize digital cash you need a payment network with accounts, balances, and transaction. That‘s easy to
understand. One major problem every payment network has to solve is to prevent the so-called double spending:
to prevent that one entity spends the same amount twice. Usually, this is done by a central server who keeps
record about the balances. In a decentralized network , you don‘t have this server. So you need every single
entity of the network to do this job. Every peer in the network needs to have a list with all transactions to check if
future transactions are valid or an attempt to double spend.

If you take away all the noise around cryptocurrencies and reduce it to a simple definition, you find it to be just
limited entries in a database no one can change without fulfilling specific conditions. This may seem ordinary, but,
believe it or not: this is exactly how you can define a currency. Take the money on your bank account: What is it
more than entries in a database that can only be changed under specific conditions? You can even take
physical coins and notes: What are they else than limited entries in a public physical database that can only be
changed if you match the condition than you physically own the coins and notes? Money is all about a verified
entry in some kind of database of accounts, balances, and transactions.

Basically, cryptocurrencies are entries about token in decentralized consensus-databases.

They are called CRYPTOcurrencies because the consensus-keeping process is secured by
strong cryptography. Cryptocurrencies are built on cryptography. They are not secured by
people or by trust, but by math. It is more probable that an asteroid falls on your house than
that a bitcoin address is compromised.

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CRYPTOCURRENCIES: DAWN OF A NEW ECONOMY

Mostly due to its revolutionary properties cryptocurrencies have become a success their inventor, Satoshi
Nakamoto, didn‘t dare to dream of it. While every other attempt to create a digital cash system didn‘t attract a
critical mass of users, Bitcoin had something that provoked enthusiasm and fascination. Sometimes it feels more
like religion than technology.

Cryptocurrencies are digital gold. Sound money that is secure from political influence. Money that promises to
with a worldwide scope, and they are private and anonymous enough to serve as a means of payment for black
markets and any other outlawed economic activity. At the same time, the praxis of Initial Coin Distribution (ICO),
mostly facilitated by Ethereum‘s smart contracts, gave life to incredibly successful crowdfunding projects, in which
often an idea is enough to collect millions of dollars. In the case of “The DAO” it has been more than 150 million
dollars. In this rich ecosystem of coins and token, you experience extreme volatility. It‘s common that a coin gains
10 percent a day – sometimes 100 percent – just to lose the same at the next day. If you are lucky, your coin‘s
value grows up to 1000 percent in one or two weeks.

Bitcoin - The one and only, the first and most famous cryptocurrency. Bitcoin serves as a digital gold standard in
the whole cryptocurrency-industry, is used as a global means of payment and is the de-facto currency of cyber-
crime like darknet markets or ransomware. After seven years in existence, Bitcoin‘s price has increased from zero
to more than 650 Dollar, and its transaction volume reached more than 200.000 daily transactions. There is not
much more to say: Bitcoin is here to stay.

Ethereum - The brainchild of young crypto-genius Vitalik Buterin has ascended to the second place in the
hierarchy of cryptocurrencies. Other than Bitcoin its blockchain does not only validate a set of accounts and
balances but of so-called states. This means that Ethereum can not only process transactions but complex
contracts and programs.

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KEY EXTERNAL ACTORS

In addition to its smart contract infrastructure, the Maker Classic Platform relies on certain external
actors to maintain operations. Keepers are external actors who take advantage of the economic
incentives presented by the Maker Classic platform. Oracles and Global Settlers are external actors
with special permissions in the system assigned to them by MKRC voters.

Keepers

A keeper is an independent (usually automated) actor that is incentivized by profit opportunities to

contribute to decentralized systems. In the context of the Dai Stablecoin System, keepers participate
in the Debt Auctions and Collateral Auctions when CDPs are liquidated.

Keepers also trade Dai around the Target Price. Keepers sell Dai when the market price is higher than
the Target Price and buy Dai when the market price is below the Target Price to profit from the
expected long-term convergence towards the Target Price.

Price Oracles

The Maker Classic Platform requires real-time information about the market price of the assets used as
collateral in CDPs in order to know when to trigger liquidations. MKRC voters choose a set of trusted
oracles to feed this information to the Maker Platform through Ethereum transactions.

To protect the system from an attacker who gains control of a majority of the Oracles, all Oracle inputs
go through the Oracle Security Module, which imposes a 1 hour delay on the data, leaving enough
time for the MKRC governance community and the Emergency Oracles to analyze the data and
react.

Emergency Oracles

Emergency Oracles are external actors similar to Price Oracles and together with MKRC voters are the
last line of defense for the Maker Platform in the event of an attack. The Emergency Oracles, selected
by MKRC voters, have the authority to unilaterally trigger an Emergency Shutdown. Aside from this
authority, these actors do not have any additional special access or control within the system.

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ADDRESSABLE MARKET

As mentioned in the introduction, a cryptocurrency with price stability is a basic requirement for the majority
of decentralized applications. As such, the potential market for Dai is at least as large as that of the entire
blockchain industry. The following is a short, non-exhaustive list of some of the immediate markets (in both
the blockchain and the wider industry) for the Dai Stablecoin System in its capacity as a cryptocurrency with
price stability and its use case as a decentralized margin trading platform:

 Financial Markets; Hedging, Derivatives, Leverage: CDPs will allow for permissionless
leveraged trading. Dai will also be useful as stable and reliable collateral in custom derivative smart
contracts, such as options or CFD’s.

 Merchant receipts, Cross-border transactions and remittances: Foreign exchange volatility

mitigation and a lack of intermediaries means the transaction costs of international trade can be
significantly reduced by using Dai.

 Transparent accounting systems: Charities, NGO’s and Governments will all see increases in
efficiency and lower levels of corruption by utilizing Dai.

 Prediction Markets & Gambling Applications: When making an unrelated prediction, it is obvious
not to want to increase one’s risk by placing the bet using a volatile cryptocurrency. Long-term bets
become especially infeasible if the user has to also gamble on the future price of the volatile asset
used to place the bet. Instead, a cryptocurrency with price stability like Dai will be the natural choice
for prediction market and gambling users.

CONCLUSION

The Maker Classic System was designed to solve the crucial problem of stable exchange of value in the
Ethereum ecosystem and the wider blockchain economy. We believe that the mechanism through which
Dai is created, transacted, and retired, along with the direct Risk Management role of MKR holders, will
allow for self-interested Keepers to maintain the price stability of Dai over time in an efficient manner.
The founders of the Maker Classic community have established a prudent governance roadmap that is
appropriate for the needs of agile development in the short term, but also coherent with the ideals of
decentralization over time. The development roadmap is aggressive and focused on widespread adoption
of Dai in a responsible fashion.

QUESTIONS OR COMMENTS?

We will announce Whitepaper 2.0. We're here to help! You can contact us by email or social networks. If
you've got a question about Maker Classic, a problem we can sort out, or some feedback that would help
us get better, we'd love to hear from you. All questions and inquiries will bе attended tо in a professional
mаnnеr. Mailbox: [email protected]

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