Dai is a stablecoin on the Ethereum blockchain, pegged to USD through smart contracts. More
| Fully Diluted Valuation | $3.81B |
|---|---|
| 24H Trading Volume | $101.35M |
| 24H Low / High | $1.00 / $ 1.00 |
| Circulating Supply | 3.80 B |
| Total Supply | 3.81 B |
| Max Supply | 0.00 |
| Categories | Stablecoins 5 more |
|---|---|
| Founder | Rune Christensen |
| Website | makerdao.com |
| Socials | |
| Chains | Ethereum Ecosystem |
| Explorer | Etherscan 8 more |
| Contracts | 0x6b1....71d0f |
| Name | Pair | OG Score |
|---|
Cryptocurrencies have revolutionized the financial landscape, introducing innovative solutions to age-old problems. Among these groundbreaking developments is DAI, an Ethereum-based stablecoin managed by the Maker Protocol and the decentralized autonomous organization (DAO) known as MakerDAO.
The Genesis of DAI
DAI, conceived in the dynamic world of decentralized finance (DeFi), distinguishes itself by its soft peg to the U.S. dollar. Unlike its predecessor, Single-Collateral DAI (SAI), Multi-Collateral DAI, launched in November 2019, accepts a variety of cryptocurrencies as collateral. Rune Christensen, the founder of MakerDAO, initiated this project in 2015, paving the way for a community-driven stablecoin.
How DAI Operates
DAI issuance is not governed by mining or a private entity; instead, it relies on the Maker Protocol. Users generate DAI by depositing a mix of cryptocurrencies into smart-contract vaults, ensuring each newly minted DAI remains collateralized. The collateral ratio varies (101% to 175%) based on the risk level of the deposited assets, providing a flexible and secure framework.
Decentralized Governance
MakerDAO's decentralized governance system, facilitated by MKR tokens, sets DAI apart. MKR holders, akin to traditional stockholders, actively participate in decision-making processes, influencing the development of MakerDAO, the Maker Protocol, and DAI. This democratic approach ensures transparency and reduces susceptibility to corruption.
Unique Advantages of DAI
DAI's primary strength lies in its soft peg to the U.S. dollar, providing stability in the often-volatile cryptocurrency market. Its decentralized governance and issuance via smart contracts enhance transparency and eliminate the need for a central authority, aligning with the core principles of blockchain technology.
Supply Dynamics and Security
Unlike traditional mining, DAI's dynamic supply depends on collateral stored in the vaults, with approximately 940 million DAI in circulation as of November 2020. Secured by Ethereum's Ethash algorithm, DAI ensures a robust and reliable network.
Obtaining and Using DAI
Users can obtain DAI through exchanges like Coinbase Pro, Binance, and decentralized platforms like Uniswap and Compound. Alternatively, users can open a Maker Vault by locking in collateral through the Maker Protocol, offering flexibility in obtaining DAI.
Resilience in the Face of Challenges
Recent challenges, including the crash of algorithmic stablecoins, showcased DAI's resilience. While algorithmic stablecoins faced significant setbacks, DAI maintained its peg to the USD, affirming the importance of over-collateralization in stablecoin ecosystems.
Beyond Stability: DAI's Use Cases
DAI's stability extends its use beyond a medium of exchange. Its compatibility with various decentralized applications (Dapps) like Compound and Uniswap underscores its versatility. The Dai Savings Rate (DSR) mechanism allows holders to earn interest, providing an additional layer of utility.
The Future of DAI
As the largest decentralized lending platform with around $2.58 billion in total value locked, DAI continues to evolve. Its decentralized nature, transparent governance, and stability make it a key player in the ever-expanding realm of decentralized finance.
In conclusion, DAI's journey from its inception to its current position as a leading stablecoin showcases the potential of decentralized finance to reshape the financial landscape. Its unique features, decentralized governance, and adaptability position DAI as a cornerstone in the broader narrative of blockchain-based financial innovation.
DAI stands out for its soft peg to the U.S. dollar, decentralized governance via MakerDAO's MKR tokens, and its collateralized issuance through the Maker Protocol, providing stability and transparency in the volatile world of cryptocurrencies.
Rune Christensen is the founder of MakerDAO.
DAI operates within the decentralized finance (DeFi) ecosystem, and its collateralization process involves users depositing cryptocurrencies into smart-contract vaults managed by the Maker Protocol. As a decentralized system, there isn't a specific list of traditional backers or investors.
You can buy Dai (DAI) on Binance, Gate.ioBitgetBybitOKX cryptocurrency exchanges.
