MakerDAO is a decentralized autonomous organization (DAO) and a prominent project in the field of decentralized finance (DeFi) built on the Ethereum blockchain. It is best known for creating and governing the Maker Protocol, which facilitates the creation and management of the stablecoin called Dai.

The Maker Protocol operates through a system of smart contracts and decentralized governance. It enables users to generate Dai by locking up collateral, primarily in the form of Ethereum (ETH), in a process known as collateralized debt positions (CDPs). These CDPs are used to secure the value of Dai and maintain its stability.

Dai is a decentralized stablecoin designed to have a value pegged to the US dollar. It provides a reliable medium of exchange and store of value within the decentralized ecosystem, as its price stability is maintained through various mechanisms implemented by the Maker Protocol.

The governance of MakerDAO is managed by MKR token holders who participate in voting and decision-making processes related to protocol upgrades, risk management, and other governance matters.

Overall, MakerDAO and the Maker Protocol aim to provide decentralized and autonomous financial services, offering stability and utility to users in the decentralized finance space.