All You Need To Know About Dai (DAI) Stablecoin

What Is DAI?

  • 1 Dai is equivalent to $1.
  • It cannot be shut down by the government or any other centralized authority.
  • It cannot be controlled by an individual or entity.
  • It can be exchanged by bypassing all the middlemen, much like other cryptocurrencies.
  • Like any ERC-20 token, it can be freely traded.
  • The volatile cryptocurrency ecosystem is transformed by its trusted stability.
  • It can be sent and received by anyone with an Ethereum wallet and from anywhere in the world.

Dai Is An Asset-Backed, “Hard Currency”

A Brief Look At Stablecoins

Differences Between Stablecoins

  1. Fiat-collateralized: These type of stablecoins are the most popular and almost all of them run in conjunction with a centralized institution. Examples include Tether (USDT), USD Coin (USDC) and TrueUSD (TUSD)
  2. Crypto-collateralized: These stablecoins are not dependent on traditional financial infrastructure and use crypto assets as collateral. By design, they are complex, less centralized and transparent. Examples are Maker (MKR), Dai (DAI), Bitshares (BTS) BitUSD, Havven (HAV) & nUSD.
  3. Algorithmic non-collateralized: These stablecoins use software-based economic models to attain stability. They are decentralized, complex and highly risky, since they need to continually grow to maintain balance. Examples of this are Kowala, Basis, Carbon, Fragments.
  4. Hybrid stablecoins. These are stablecoins which are a hybrid of the approaches used by the other coins. Examples include Reserve, Saga, Aurora — Boreal.

How DAI Maintain Its Value?

How Is Dai Created?

Where Can Dai Be Bought?



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