The live price of Dai today is $1.00 USD. Dai is up 0.00% in the last 24 hours compared to $USD. Dai has a live market cap of $5,102,043,683.70 USD, and a circulating supply of 5,103,064,297 DAI.
DAI is a stablecoin that is based on Ethereum and that is managed by the Maker Protocol and the MakerDAO decentralized autonomous organization.
DAI is a cryptocurrency that is pegged to the U.S. dollar. It is backed by other cryptocurrencies that are deposited into special contracts whenever new DAI is created.
There are two types of DAI tokens: Multi-Collateral DAI and Single-Collateral DAI. Single-Collateral DAI is an earlier version of the token that could only be backed by a single cryptocurrency. It also doesn’t support the DAI Savings Rate, which allows users to earn savings by holding DAI tokens.
Multi-Collateral DAI was created in November 2019.
Who Created DAI?
MakerDAO and the Maker Protocol were not created by a single person or a small group of co-founders. Instead, the development of the software that powers it and the issuance of new tokens is governed by the MakerDAO and Maker Protocol.
MakerDAO is a company that runs itself without having a boss. It does this with the help of smart contracts. These are agreements that are written in software code and executed on the Ethereum blockchain.
This organization is managed democratically by the people who own its Maker governance tokens. These tokens work like stock in a traditional company. The people who own the most Maker tokens have the most voting power when it comes to decisions about the development of MakerDAO, Maker Protocol and DAI.
MakerDAO was founded by a Danish entrepreneur, Rune Christensen, in 2015. Christensen studied biochemistry and international business in Copenhagen before starting work on the Maker ecosystem. He also founded the Try China international recruiting firm.
How to Create/Generate Dai?
Dai is a cryptocurrency that is similar to Bitcoin. However, it is backed by stablecoins, which are currencies that are pegged to the value of the US dollar. Recently, Dai was overtaken by Terra’s native stablecoin in terms of market capitalization. Both stablecoins are backed by cryptocurrencies, while the most popular stablecoins are backed by traditional assets. USDT, USDC, and BUSD are all backed by cash, corporate bonds, U.S. treasuries, and commercial papers. This has come into question for USDT in particular. What is Dai backed by? Dai is a collateral-based cryptocurrency that is pegged to the U.S. dollar. This means that users can generate Dai by depositing crypto-assets into Maker Vaults on the Maker Protocol. They can do this through Oasis Borrow or other interfaces built by the community. On Oasis Borrow, you can lock in collateral like ETH, WBTC, LINK, UNI, YFI, MANA and MATIC. If you want to borrow Dai against your collateral, it must be within the collateral ratio which is from 101% to 175%. This depends on how risky the asset is that you locked.
What Makes DAI Unique?
DAI’s main advantage is that its price is semi-pegged to the U.S. dollar.
The crypto market is well-known for its volatility. This means that the prices of even the largest and most liquid coins, like Bitcoin, can change a lot in just one day. When this happens, traders and investors often add safe-haven assets to their portfolios. These assets tend to have prices that stay more stable.
One example of a type of asset is a stablecoin. A stablecoin is a type of cryptocurrency whose price is pegged to another asset with a relatively stable value, most commonly traditional fiat currencies like USD or EUR.
Another key advantage of DAI is that it is managed not by a private company, but rather by a group of people who use a software protocol.
How Many DAI Coins Are There in Circulation?
New DAI tokens are not created by mining like Bitcoin (BTC) and Ethereum (ETH). They are not created by a private company according to its own rules like Tether (USDT). Instead, any user can create new DAI tokens using the Maker Protocol.
Maker Protocol, which is a software that runs on Ethereum, governs the issuance of DAI tokens. In order to maintain the soft price peg to the U.S. dollar, Maker Protocol ensures that every DAI token is collateralized by an appropriate amount of other cryptocurrencies. As part of this process, the Protocol allows any user to deposit their crypto into a so-called vault. This is a smart contract on the Ethereum blockchain. When someone does this, they receive new DAI tokens in return.
There is no upper limit on the total supply of DAI. The amount of DAI in circulation depends on how much collateral is stored in the vaults at any given moment. As of November 2020, there are around 940 million DAI in circulation.
How Is the Network Secured?
DAI is a token that is Ethereum-based and compatible with the ERC-20 standard. It is secured by Ethereum’s Ethash algorithm.
Where Can You Buy DAI?
The purchase of DAI tokens is available on numerous online platforms. These include Decentralized Finance (DeFi) token swap protocols:
And traditional cryptocurrency exchanges: