The current price of Dai today is US$0.9983 USD, with a 24-hour trading volume of $19.24 billion USD. DAI has gained +0.00% in the last 24 hours. DAI has a circulating supply of 5.37 billion DAI.
What Is Dai?
Dai (DAI) is a decentralized, collateral-backed stablecoin pegged to the US dollar and built on the Ethereum blockchain. Dai is supported by collateralized assets composed of other cryptocurrencies held within smart contracts whenever new Dai is issued.
A Brief History of Dai
DAI was created in December 2017 by the decentralized autonomous organization MakerDAO and the crypto lending platform Maker Protocol. The current version of DAI was introduced in December 2019, replacing its predecessor, the Single Collateral Dai (SAI).
How Does DAI Work?
When the current version of DAI launched in 2019, it was generated through Maker Protocol, a smart contract-based lending platform that provides loans to users who lock their collateral in cryptocurrencies. This collateral is then exchanged for DAI, a multi-collateral asset provided by Maker, which pegs DAI to the US dollar to mitigate price volatility.
What Is DAI Used For?
Dai provides services to crypto traders and investors who need safe-haven assets for their portfolios. Its relatively stable price helps offset significant market fluctuations, making it a native blockchain solution for crypto users.
Key Features of Dai
👉 Why Dai is a preferred stablecoin
- Decentralization: Unlike centralized stablecoins, Dai operates without a single controlling entity.
- Transparency: Collateral reserves are publicly verifiable on the blockchain.
- Accessibility: Integrates seamlessly with DeFi applications.
Frequently Asked Questions (FAQs)
1. How is Dai different from other stablecoins?
Dai is fully decentralized and backed by crypto collateral, whereas many other stablecoins rely on centralized reserves or algorithms.
2. What cryptocurrencies can be used as collateral for Dai?
Ethereum (ETH) and other ERC-20 tokens are commonly accepted as collateral via MakerDAO’s vaults.
3. Is Dai always worth exactly $1?
While Dai aims to maintain a 1:1 peg with the USD, minor fluctuations (±0.01%) can occur due to market conditions.
👉 Explore Dai’s use cases in DeFi
Conclusion
Dai exemplifies innovation in stablecoin technology by combining decentralization with price stability. Whether for trading, lending, or hedging, Dai offers a versatile tool for crypto participants.