Dai crypto

Since its launch, DAI has become the fourth largest stablecoin by market cap, exceeding 5 billion USD, and its circulating supply has remained below 10 billion USD. The fact that DAI held its dollar peg during a tumultuous market when other stablecoins lost theirs, has further built trust in the MakerDAO ecosystem. Today, MakerDAO implements a variety of security measures for DAI, including support for staked ether as collateral and various layer-2 contracts, further solidifying its position as a reliable and secure stablecoin. What is dai crypto DAI is a cryptocurrency that is pegged to the value of the U.S. dollar. The token is what’s known as a stablecoin. Unlike so many volatile cryptocurrencies, DAI aims to stay at a steely $1 value at all times.

Don’t miss our new articles! The Outlook for Dai One such kind of asset are stablecoins, of which DAI is one example. These are cryptocurrencies whose price is pegged to assets with a relatively stable value — most commonly traditional fiat currencies, such as USD or EUR.

Why is AlphaWallet the best wallet for DAI? Who Are the Founders of DAI? Of course, my demand for Dai increases its price, and eventually Dai increases in value until it approaches $1 USD. If Dai stays below $1, CDP owners continue to pay down debt and remove Dai from the system. When Dai goes above $1 USD, Dai is created to feed the demand. It is this push and pull, creation and destruction, supply and demand which ensures that Dai always matches the $1 USD peg.

If you are new to crypto, use the Crypto.com University and our Help Center to learn how to start buying Bitcoin, Ethereum, and other cryptocurrencies. How the MakerDAO and DAI Works Compared to Tether, DAI doesn’t have credit and counterparty risk as it is not backed directly by a currency. Instead, it is backed by a basket of Ethereum-based cryptocurrencies, and its issuance is solely governed by smart contracts, which eliminates human error.