What is Dai DAI and how to use it
Meaning of Dai
Modified Date:- Published Date:-Categories: Cryptocurrency
What is Dai DAI and how to use it
Dai (DAI) isone of two native cryptocurrencies of the Maker Protocol, an open-sourcesoftware application maintained by the Maker distributed autonomousorganization (MakerDAO).
DAI, is adecentralized stablecoin — meaning that it’s not managed by a central authorityor organization, but by smart contracts. It’s also soft-pegged to the U.S.dollar — it’s correlated to USD but not backed by actual dollars — to try tokeep its value relatively steady compared with other cryptos. The utilityand governance token of MakerDAO is MKR, which is used to stabilize the priceof Dai crypto.
Dai wascreated to facilitate crypto lending, which is the main focus of the Makerprotocol. But as an ERC20 token, Dai crypto also offers a wide range ofpossible use cases on Ethereum, including the creation of smart contracts.
Dai(DAI) is a collateral-backed cryptocurrency, one that attempts to maintainroughly a one-to-one value with the U.S. dollar through the use of smartcontracts. In other words, Dai coin is a stablecoin. But whereas other stablecoins arerun by centralized organizations that seek to keep their prices steady, DAIcrypto is based on smart contracts and backed by other forms of crypto, byusing collateralized debt.
Dai (DAI) is one of two native crypto oweners of the Maker Protocol, an open-source software application maintained by the Maker distributed autonomous organization (MakerDAO). It's tied to a system of collateralized debt.