Maker (MKR) has gone on a tear, rising 159 percent to a present value of $758 on Monday morning. The Maker price has risen 24 percent in the past 24 hours alone, raising the MKR market cap to $552 million and launching the token to 22nd in the market cap rankings. MKR is also showing strong volume recording over $31M at the time of writing.

There are a couple interesting drivers here. First, Andreessen Horowitz, the famous venture capital firm, put a $15 million stake on MKR – the purchase by the VC firm also was backed by Yale’s endowment.

“As a first mover and innovator in stablecoins, MakerDAO represents a very compelling opportunity in the crypto space. MakerDAO’s technology, ecosystem and talent have put theory into action to deliver a decentralized stablecoin that we believe will help drive the future of the crypto economy.” – General Partner at a16z crypto – Katie Haun.

Second, the developers of decentralized prediction market Augur announced that they would add support for Dai on the platform, which heretofore had only allowed punter’s to place bets using ether. Augur’s decision to choose Dai for its platform is a huge vote of confidence in the Maker network and its ability to maintain a consistent peg to the value of the U.S. dollar. This is really a win-win for both Augur and MKR.

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If you are not familiar with this coin, Maker’s first product is called Dai, which is a stablecoin. One Dai for one dollar. The warning against the Maker and DAI ecosystem is really about the the collateralization with Ethereum, which is supposed to back the value of DAI. The value of MKR may rise as more ETH is injected into the ecosystem. However, the Maker project still has to prove itself as being capable of preserving the value of both MKR and DAI. The company’s rebuttal to this fear is as follows:  “If the value of ether held as collateral is worth less than the amount of Dai it’s supposed to be backing, then Dai would not be worth one dollar and the system could collapse. Maker combats this by liquidating CDPs and auctioning off the ether inside before the value of the ether is less than the amount of Dai it is backing. Basically, if the price feed into the CDP indicates that the value of ether has gone below a certain threshold (let’s use 125% of created Dai), then the CDP is “liquidated” and the ether inside the CDP is auctioned off for Dai until there is enough Dai to pay back what was extracted from the CDP.”