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MakerDAO vs PayPal

MakerDAO logo

MakerDAO

Software

The decentralized stablecoin protocol

From
Free
Rated
-
Full reviewWebsite
PayPal logo

PayPal

Software

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite

The short version

  • Only MakerDAO has a free tier, so it costs nothing to try first.
  • Each has a real cost: MakerDAO makerDAO is governed as a decentralized autonomous organization by MKR token holder vote rather than a vendor, so it has no company-set price list, subscription tiers or sales contact; access and fees (stability fee, liquidation ratio) are set by on-chain governance vote rather than published as a product price; PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • They diverge on capability: MakerDAO covers DAI Stablecoin, PayPal covers Payment processing.

Where they differ

Only the attributes on which MakerDAO and PayPal actually diverge.

Attributes where MakerDAO and PayPal differ
AttributeMakerDAOPayPal
Starting priceFree$29/month
Pricing modelfreeusage-based
Free tierYesNo
PlatformsWebWeb, Ios, Android, Api
Founded20151998

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in MakerDAO

  • DAI Stablecoin
  • Vaults
  • Stability Fees
  • Liquidations
  • Governance
  • MKR Token
  • DAI
  • Spark Protocol

Only in PayPal

  • Payment processing
  • PayPal Checkout
  • Invoicing
  • Business debit card
  • Working capital loans
  • Shopify
  • WooCommerce
  • BigCommerce

Both cover

  • Web support

What people use each for

The jobs each tool is most often brought in to do.

MakerDAO

  • Definot PayPal
  • Stablecoinnot PayPal
  • Lendingnot PayPal

PayPal

  • Paying online merchants without sharing card detailsnot MakerDAO
  • Sending money to friends and family domestically and internationallynot MakerDAO
  • Holding balances in multiple currencies for cross border purchasesnot MakerDAO

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

MakerDAO

  • MakerDAO is governed as a decentralized autonomous organization by MKR token holder vote rather than a vendor, so it has no company-set price list, subscription tiers or sales contact; access and fees (stability fee, liquidation ratio) are set by on-chain governance vote rather than published as a product price

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

Pricing, plan by plan

MakerDAO

Free
  • FreeFree
    • DAI minting
    • Vaults
    • Governance

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

Which should you pick?

Choose MakerDAO if

  • You need dai stablecoin.
  • You want to start without paying.
  • You also want vaults.
MakerDAO review

Choose PayPal if

  • You need payment processing.
  • You work on Web, Ios, Android, Api.
  • You also want paypal checkout.
PayPal review

Questions people ask

Is MakerDAO or PayPal better?
Neither clearly leads. MakerDAO starts at Free and PayPal at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, MakerDAO or PayPal?
MakerDAO has a free tier; the other does not. Paid plans start at Free for MakerDAO and $29/month for PayPal.
Does MakerDAO or PayPal run on more platforms?
MakerDAO runs on Web. PayPal runs on Web, Ios, Android, Api.
Can I use MakerDAO for free?
Yes. MakerDAO has a free tier, so you can try it without paying. PayPal starts at $29/month.
What is MakerDAO best used for?
MakerDAO is most often used for defi, stablecoin, lending. Of those, defi and stablecoin are not what PayPal is typically brought in for.
What can MakerDAO do that PayPal cannot?
MakerDAO covers DAI Stablecoin, Vaults, Stability Fees, Liquidations. PayPal covers Payment processing, PayPal Checkout, Invoicing, Business debit card. Both handle Web support.
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