MakerDAO is a decentralized finance (DeFi) platform built on the Ethereum blockchain. It allows users to create a stablecoin called DAI, which is pegged to the value of the U.S. dollar. Users can generate DAI by locking up collateral, such as ETH or other cryptocurrencies, in smart contracts. This process helps maintain the stability of DAI's value. The governance of MakerDAO is managed by its community through a system of MKR tokens. Holders of MKR can vote on important decisions, such as risk parameters and collateral types. This decentralized approach aims to create a more resilient and transparent financial system.