Imagine you have some cryptocurrency, like Bitcoin or Ethereum. The Maker Protocol lets you use that crypto as a deposit (collateral) to borrow a special type of digital currency called DAI. DAI is like a stablecoin, meaning it tries to hold a steady value similar to the US dollar. So, it's like using your crypto as security for a loan you take out in DAI. MakerDAO, which is run by a community, decides what cryptocurrencies you can use as collateral.
