Dai (DAI) is a decentralized stablecoin pegged 1:1 to the US dollar, operating on the Ethereum blockchain. As of recent data, Dai maintains its dollar parity through an innovative collateral-backed system managed by MakerDAO.
Key Features of Dai (DAI)
Decentralized Stability
- Maintains 1:1 USD peg through over-collateralization
- Governed by MakerDAO's community-driven protocol
- Operates without centralized control of reserves
Multi-Collateral System
Supports diverse collateral types including:
- Ethereum (ETH)
- USD Coin (USDC)
- Wrapped Bitcoin (WBTC)
- Dynamic collateral ratios ensure system solvency
DeFi Integration
Serves as foundational infrastructure for:
- Decentralized lending platforms
- Yield farming protocols
- Stable trading pairs across DEXs
How Dai Maintains Its Peg
The Maker Protocol employs a sophisticated stabilization mechanism:
- Price Below $1: Increases savings rates to incentivize DAI buying
- Price Above $1: Expands supply through easier borrowing terms
- Automated liquidations protect against under-collateralization
👉 Discover how to use DAI in DeFi applications
Current Market Position
- Circulating Supply: 5.72 billion DAI
- Market Capitalization: ¥41.3 billion (approximate)
- 24h Trading Volume: ¥2.47 million
Use Cases for DAI
Volatility Hedge
- Balances crypto portfolio risk
- Preserves value during market downturns
DeFi Applications
- Collateral for lending protocols
- Stable trading pairs
- Yield-bearing instruments
Global Payments
- Cross-border transfers
- Merchant payments via crypto cards
Frequently Asked Questions
Q: How is DAI different from USDT or USDC?
A: Unlike centralized stablecoins, DAI maintains decentralization through algorithmic mechanisms and community governance.
Q: What determines DAI's collateral requirements?
A: MakerDAO governance votes on acceptable collateral types and minimum ratios based on risk parameters.
Q: Can DAI lose its peg?
A: While designed to maintain parity, temporary deviations may occur during extreme market conditions before stabilization mechanisms activate.
Q: Where can I earn yield on DAI?
A: Multiple DeFi platforms offer yield opportunities through:
- Lending protocols
- Liquidity pools
- Savings rate products
👉 Explore DAI trading opportunities
Acquisition Methods
DAI is available through:
- Centralized exchanges (CEXs)
- Decentralized exchanges (DEXs)
- Direct minting via Maker Vaults
- Peer-to-peer trading platforms
The Maker ecosystem continues to expand with new partnerships and integration across the blockchain space, maintaining DAI's position as a cornerstone of decentralized finance.