Rune Christensen, CEO and cofounder of MakerDAO, explains the intricacies of the MakerDAO system, which includes the stablecoin Dai, which is pegged to $1, backed by collateral, and whose governance is managed by holders of the MKR token. He describes how the current version of "single-collateral" Dai, is backed by ether, how Dai is created with a collateralized debt position and what happens when the value of the collateral falls too low. He also talks about the roles of various players in the system, such as keepers, oracles and MKR token holders. We also cover how the system handles black swan events or other emergencies. The MakerDAO system is so complex, however, that we will reconvene for a part 2 to describe the rest of the system and how a multi-collateral Dai will function. Thank you to our sponsors! Tokensoft: https://www.tokensoft.io Microsoft: https://twitter.com/MSFTBlockchain CipherTrace: http://ciphertrace.com/unchained Episode links: MakerDAO: https://makerdao.com/en/ Rune Christensen: https://twitter.com/RuneKek Previous Unchained episode on stablecoins with Rune and Philip Rosedale of High Fidelity: https://unchainedpodcast.com/why-its-so-hard-to-keep-stablecoins-stable/ Unconfirmed episode with Rune on Andreessen Horowitz's $15 million investment: https://unchainedpodcast.com/rune-christensen-of-makerdao-on-its-15-million-from-andreessen-horowitz-ep-039/ MakerDAO white paper: https://makerdao.com/en/whitepaper/ Decreasing the stability fee: https://medium.com/makerdao/decreasing-the-stability-fee-1f9fe50cf582 Unchained episode on generalized mining with Jake Brukhman and Tushar Jain: https://unchainedpodcast.com/coinfunds-jake-brukhman-and-multicoins-tushar-jain-on-generalized-mining-ep-92/ Laura's TEDx talk: https://unchainedpodcast.com/lauras-tedx-talk-how-crypto-could-allow-more-people-to-be-their-own-boss-ep-047/ USD Coin's banking partners: https://support.usdc.circle.com/hc/en-us/articles/360015278272-Who-are-the-banking-and-financial-partners-you-are-using-for-USDC- TrueUSD's trust companies and their correspondent banks: https://blog.trusttoken.com/who-are-the-correspondent-banks-and-trustee-partners-for-trueusd-e12508f0d5a2