- Category: Cryptocurrency
- Coin Launched: December, 2017
- Resources: White Paper
- Official Website: Dai
- Reddit: Dai
Dai is the native stable coin for the Maker protocol. It is the world’s first crypto-collateralized and decentralized stable coin, whose value is soft pegged to the US Dollar.
The collateralized assets backing Dai are other cryptocurrencies instead of fiat and are held within smart contracts rather than in institutions.
DAI History / Information / Buying / Staking
Founded in 2014 by Rune Christensen, the Maker Foundation created the Maker Protocol, an open-source project whose goal was to operate a credit system that would allow users to take out loans collateralized by cryptocurrencies. DAI officially launched on the Maker Protocol in 2017 as a means to provide a non-volatile lending asset for businesses and individuals.
HOW DAI WORKS
DAI is an ERC20 token on the Ethereum blockchain that has a steady value of one US dollar. It is also the key to the MakerDAO lending system. When a loan is taken out on MakerDAO, DAI is created. It’s the currency users borrow and pay-back. Once DAI is created, it functions simply as a stable Ethereum token. It can be used to pay for things and is easily transferred between Ethereum wallets.
BENEFITS OF USING DAI
Some of the benefits of using Dai are:
The supply of DAI cannot be altered by any party in the network, which offers complete transparency and security
Backed by the US Dollar, which means that DAI remains stable if the value of USD remains stable
CAN YOU STAKE DAI
DAI can frequently be staked using common exchanges, such as Binance or Coinbase.
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