Dai is a Stablecoin released in 2017 as part of the MakerDAO ecosystem. In this article, as Kriptokoin.com, “What is Dai?” We will answer the question. In addition, we will touch on other questions about the project.
What is Dai? What does it do?
Dai, MakerDAO is a peer-to-peer cryptocurrency lending platform launched two years before Dai. Individuals can both borrow and lend in DAI format using MakerDAO. Also, the platform is completely decentralized. MakerDAO currently stands as one of the most popular DeFi projects in the crypto industry along with other big players like Uniswap and Yearn Finance. In fact, MakerDAO currently has over two million ETH locked from user deposits.
It is therefore safe to say that it has become a highly successful DApp. MakerDAO and Dai exist on the Ethereum Blockchain, as do many Stablecoins. This makes Dai an ERC-20 Token that you can buy on most crypto exchanges such as Coinbase, Binance, and KuCoin. Because Dai is an ERC-20 Token, it can be stored in a wide variety of well-known wallets, including MetaMask, Atomic Wallet, and Exodus. MakerDAO’s presence on the Ethereum Blockchain also allows it to support smart contracts.
What is DAI Coin?
The native Token of the platform is DAI. DAI is a stablecoin or a decentralized, neutral cryptocurrency that you can store in crypto wallets or exchanges. Another important point about DAI is that Ethereum and other popular Blockchain platforms support the platform. MakerDAO users can easily create DAI by depositing collateral assets into Maker Vaults in Maker Protocol. This allows DAI to circulate. Thus, it facilitates liquidity to users.
How does it work?
DAI is an ERC-20 Token that can be purchased from both centralized exchanges and decentralized exchanges (DEXs). Additionally, they can create DAI by opening a Maker depository via MakerDAO’s Oasis Borrow dashboard. It can also be borrowed. Additionally, you can deposit Ethereum-based assets as collateral. Constructive collateral vaults were previously referred to as collateralized debt positions (CDPs).
In an earlier iteration of the Maker protocol, the borrowed DAI are smart contracts that hold the collateral in escrow until it is returned. The value of your deposit must always exceed the value of the DAI awarded to you. If the value of the Collateral falls below the value of the issued DAI Tokens, your collateral will be liquidated. DAI is one of the most integrated digital assets in the Blockchain ecosystem. Once borrowed, it can be used in DeFi apps or Blockchain-based games, among other places.
What is Dai? How to buy DAI?
Dai is currently traded on numerous cryptocurrency exchanges. The exchanges where Dai is traded are listed as follows: OKX, FTX, Bybit, Bitget. People who want to invest in the project should access the web/mobile application of the stock exchange where the project is traded. Next, the exchange must complete the account opening steps.
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