Dai (DAI)

What is Dai (DAI)?

Dai (DAI) is a stablecoin that is issued on the Ethereum network. It is pegged to the US dollar, with each Dai being equal in value to one US dollar. Dai is backed by a mix of other cryptocurrencies that are deposited into smart contracts called vaults every time new DAI is minted.

How does Dai work?

Dai works by using the Ethereum blockchain to store and transfer value. Each Dai is backed by an equivalent amount of US dollars held in reserve by MakerDAO. This means that for every Dai in circulation, there is an equivalent amount of US dollars held in reserve.Users can purchase Dai from cryptocurrency exchanges or directly from MakerDAO. They can then use it to make transactions on the Ethereum blockchain or exchange it for other cryptocurrencies or fiat currencies.

Conclusion

Dai is a stablecoin that offers a reliable and convenient way to make payments on the Ethereum network and beyond. It is backed by a diverse set of collateral assets that ensure its stability and security. It also allows users to benefit from the innovation and incentive of the Ethereum ecosystem.