What is Dai (DAI), and how does it differ from other cryptocurrencies?
Dai (DAI) is a stablecoin operating on the Ethereum blockchain and maintaining a 1:1 peg with the US dollar.
How does Dai achieve its price stability?
DAI maintains stability using a system of smart contracts and collateral.
What's the significance of Dai's decentralized nature?
Dai offers financial autonomy to its holders as it's governed by users and operates without a centralized authority.
How can I obtain Dai?
You can buy or stake Dai through such crypto exchanges as Binance, Coinbase, Kraken, and OKX. Also you can buy Dai via licensed itez service, where you can smoothly pay for crypto with a bank card or SEPA. Moreover, you may also get Dai through the MakerDAO system.
Is Dai subject to price fluctuations like other cryptocurrencies?
Compared to many other cryptocurrencies, Dai is relatively stable, as it is a stablecoin pegged to the US dollar rate. However, it still can experience fluctuations as the market is dynamic.
What role does the MakerDAO system play in the Dai ecosystem?
MakerDAO is the decentralised organisation. It's the issuer of two coins: Dai (DAI) and Maker (MKR). Dai is used as a stablecoin, while MKR is MakerDAO's governance token. The organisation makes desicions on the project's development through a desentralised voting process, where every MKR holder has a say.
Can Dai be used for everyday transactions?
Yes, just like any other stablecoin. Dai's price is stable, so users can easily make everyday purchases using it.
What's the risk of Dai's collateral becoming undercollateralized?
The MakerDAO system has safeguards to prevent undercollateralisation. But it's still essential to monitor its health.
Can Dai be used for cross-border payments?
Yes, Dai is stable and also easy to use. So, it can be a very practical and good choice to use the asset for cross-border payments.
How does Dai contribute to the DeFi ecosystem?
Having a stable price, Dai provides the DeFi ecosystem with a firm store of value. It helps avoid volatile market conditions.