DAI by MakerDAO

What is Dai?

Dai is a stablecoin issued by Maker Protocol. Its first stablecoin iteration was known as the Single Collateral Dai (SAI), which used Ether (ETH) as collateral.

Two years later in 2019, the Foundation released the Multi-Collateral Dai (DAI), phasing out SAI. The platform has enjoyed widespread adoption and is the largest decentralized lending platform with around $2.58 billion in total value locked (TVL), as of December 2020.

What can Dai (DAI) do?

Dai has several strong benefits and use cases. Most notably, Dai’s soft peg to the US Dollar helps mitigate price volatility. In the cryptocurrency space where price swings are common and dramatic, this feature helps preserve Dai’s value and promotes its use as a medium of exchange.

Additionally, the stablecoin’s decentralized nature means that it is highly composable with other decentralized applications (Dapps) such as Compound, Uniswap etc. It also provides greater transparency and censorship resistance compared to centralized solutions.

The source code for the protocol can be viewed freely by anyone who wishes to do so. Dai holders can also save their Dai and earn interest through the Dai Savings Rate (DSR) mechanism. Further reading on Dai’s benefits and use cases can be found in Maker’s whitepaper and ecosystem page.

$DAI on NEAR: https://nearblocks.io/token/6b175474e89094c44da98b954eedeac495271d0f.factory.bridge.near