Dai

What is Dai (DAI)?

Dai is a decentralized, stable coin running on the Ethereum blockchain and designed to maintain a value close to one United States dollar. It is created by MakerDAO, a decentralized autonomous organization, and is collateralized by various cryptocurrencies.

What Problem Does Dai (DAI) Solve?

Dai addresses:

• Volatility: Helps maintain stability in the very volatile cryptocurrency market.
• Accessibility: Provides a decentralized stable currency not depending on traditional banking.
• Transparency: Ensures an open, transparent, and safe method of issuance and redemption through smart contracts.

Why the Crypto Market Needs Dai (DAI)

The crypto market benefits from Dai by:

• Stability: It serves as a stable asset for trading and transactions.
• DeFi Integration: Supporting a wide range of DeFi applications and protocols.
• Global Accessibility: An internationally accessible currency for those who do not need a bank account.

History & Achievements

MakerDAO launched the Dai stablecoin in December 2017, and since then, it has been one of the most used stablecoins in DeFi applications, integrated into many protocols and platforms.

Who Founded Dai (DAI)?

Dai was developed by MakerDAO, a company established by Rune Christensen. MakerDAO is the protocol that issues and manages Dai.

What Technology Does Dai (DAI) Use and How Does it Work?

Dai uses:

• Ethereum Blockchain: To have decentralized and transparent operations.
• Smart Contracts: Issuance, redemption, and collateralizing management of Dai.
• Collateralized Debt Positions (CDPs): Locking up collateral to generate Dai.

What Affects the Price of Dai (DAI)?

Factors influencing the price of Dai:

• Market Demand: The demand for Dai in markets, and DeFi use-cases.
• Collateralization: The value and stability of the collateral backing DAI.
• Regulatory Changes: Changes made in regulations concerning cryptocurrencies.

How Many Tokens of Dai (DAI) Are in Circulation?

There are about 5,294,947,314 DAI tokens in circulation, matching the total supply.

What is the Maximum Supply of Dai (DAI)?

Dai has no fixed maximum supply. Instead, it is dynamically readjusted based on how much collateral is locked in the system.

What is the Utility of DAI (DAI)?

Dai tokens are used for:

• Reliable Transactions: As a stable medium of exchange.
• DeFi: In several DeFi protocols to lend, to borrow, and as a yield farm.
• Collateral: It will be used to collateralize other synthetic assets and stable coins.

Dai (DAI) Tokenomics

Dai's tokenomics contains:

• Dynamic Supply: Quantity is changed by the collateral quantity locked inside the system.
• Collateralization: Backed by multiple cryptocurrencies.
• Stability Fees: Charged from users for creating Dai with the help of CDPs.

What is the All-Time High and All-Time Low for Dai (DAI)?

• All-Time High: $1.22 on March 13, 2020
• All-Time Low: $0.6656 on March 11, 2023

Where to Buy Dai (DAI)?

DAI tokens can be bought on popular cryptocurrency exchanges, such as:

• Binance
• Coinbase
• Kraken
• Gemini
• Uniswap

Who Was In Early On the Dai (DAI) Investment?

MakerDAO did not have a traditional set of early stage investors; it was developed and financed by the MakerDAO community in a fully decentralized way.

Revenue Streams of Dai (DAI)

MakerDAO's revenue streams include:

• Stability Fees: Charged for minting Dai against CDPs.
• Liquidation Penalties: Liquidation fees are levied while liquidating under-collateralized positions.