- $DAI (spending token): users borrow $DAI by overcollateralizing digital assets. They pay a stability fee for borrowing (interest) and receive back collateral when repaying their debt. A liquidation auction may occur if collateral value drops below liquidation price. $DAI can also be locked to generate yield (DSR)
- $MKR (gov token): $MKR holders own voting rights. If a debt auction occurs (loan>collateral), $MKR are minted. Else $MKR are burnt in the case of surplus auction (loan<collateral)

- $MKR holders: incentivized by governance rights
- Keepers: in a surplus auction keepers buy $MKR and compete each other in an increasing bid auction to receive a fixed quantity of $DAI, in a debt auction keepers try to acquire $MKR at a discounted price to let protocol quickly cover the debt

- $DAI generation, which is the major algorithmic stablecoin
- First-mover advantage of being one of the former lending systems and well-structured DAO protocols in the entire DeFi ecosystem
- Simple stablecoins swap function
- Possibility to use RWA (Real World Assets) as collateral for borrowing $DAI
- No KYC, non-custodial wallet service

- Governance rights: $MKR holders benefit from managing one the most considerable web3 treasuries by controlling stability fees, DSR, PSM, collateral liquidation price, and asset collateralization ratio
- If the protocol makes good lending decisions can generate profits in the form of $MKR burnt since $DAI received from borrowers are converted into $MKR in an auction and consecutively burnt

- Lending income: interest revenues from loans (Stability Fees)
- Liquidation income: liquidation penalties from liquidated vaults
- Trading fees: stablecoin trading fees from the Peg Stability Module (PSM)
If MakerDAO can generate good lending decisions, more $MKR are burnt, increasing its value (surplus auction). On the contrary, $MKR is diluted to face a debt auction and potentially lose value