Too Long; Didn't Read
MakerDAO is a <a href="https://hackernoon.com/tagged/protocol" target="_blank">protocol</a> behind the stable coin DAI — a <a href="https://hackernoon.com/tagged/cryptocurrency" target="_blank">cryptocurrency</a> that maintains a 1:1 peg to the USD. Think of 1 DAI as $1. What makes it unique is each DAI is backed by Ether instead of a 3rd party claiming to have the required collateral. Since Ether is volatile this poses some interesting challenges to maintain the peg.