DAI - A Stablecoin You Can Control
by Kamil S
The Digital Currency of MakerDAO Now Trading on Coinmetro
If you’ve been in the crypto space for a while, the name MakerDAO will speak volumes to you. Being one of the first DeFi applications with significant adoption, the Maker Protocol is currently one of the largest DAOs (decentralized autonomous organizations) on the Ethereum blockchain.
Last week, the 15 Weeks of Summer campaign has brought new, meaningful listings on Coinmetro exchange. Let’s take a closer look at DAI – MakerDAO’s stablecoin – an asset designed to minimize price volatility. As a decentralized, unbiased, collateral-backed cryptocurrency that is soft-pegged to the US Dollar, DAI’s value lies in its stability. The DAI stablecoin is collateral-backed and comes with a 1:1 ratio to the U.S. dollar on every single DAI of available balance, which is held in cryptocurrency wallets or within platforms. DAI can be withdrawn to a USD bank account or converted to other currencies instantly through an intermediary with no fees involved. Let’s discover the coin and the pioneering organization behind it.
Smart Currencies on Coinmetro Exchange
MakerDAO – the community behind DAI – recently made it back to the number one decentralized finance protocol on the Ethereum blockchain by locking up more tokens than all other networks. Moreover, DAI is currently the largest decentralized stablecoin by market capitalization.
DAI is an asset-backed currency that can be generated, accessed, and used in the Maker Platform. Users earn DAI by depositing assets into their Maker Vaults. By earning DAI and holding it as collateral, users can receive liquidity through the Maker Decentralized Exchange (DEX).
MakerDAO’s stablecoin is a cryptocurrency that allows people to trade assets or store value. You can send DAI to others and use it as payment for goods or services. You can even convert it back into fiat currency. Being directly backed by excess collateral, the value of the collateral is higher than the value of the DAI debt, and all DAI transactions are publicly viewable on the Ethereum blockchain.
There is no upper limit on the total supply of DAI — the supply is dynamic and depends on how much collateral is stored in the vaults at any given moment. Today, there are around 6.9 billion DAI in circulation.
DAI is also available on SWAP.
DAI Token Utility
The stablecoin with the biggest market capitalization has more than several use cases and utilities:
- DAI as a Store of Value – A store of value is an asset that keeps its value without significant depreciation over time. Because DAI is a stablecoin, it is designed to function as a store of value even in a volatile market.
- DAI as a Medium of Exchange – A medium of exchange is anything that represents a standard of value and is used to facilitate the sale, purchase, or exchange (trade) of goods or services. The DAI stablecoin is used around the world for all types of transactional purposes.
- DAI as a Unit of Account – A unit of account is a standardized measurement of value used to price goods and services (e.g., USD, EUR, YEN, etc.). Currently, DAI has a target price of 1 USD (1 DAI = 1 USD). While DAI is not used as a standard measurement of value in the off-chain world, it functions as a unit of account within the Maker Protocol and some blockchain dApps, whereby Maker Protocol accounting or pricing of dApp services is in DAI rather than a fiat currency like USD.
- DAI as a Standard of Deferred Payment – DAI is used to settle debts within the Maker Protocol (e.g., users use DAI to pay the stability fee and close their Vaults). This benefit separates DAI from other stablecoins.
- Collateral Assets – DAI is generated, backed, and kept stable through collateral assets that are deposited into Maker Vaults on the Maker Protocol. A collateral asset is a digital asset that MKR holders have voted to accept into the Protocol.
MakerDAO is a decentralized organization dedicated to bringing financial stability and transparency to the world economy. The Maker Protocol is designed by a diverse group of contributors, including developers within the Maker Foundation, as well as a network of external partners, economists and crypto traders.
The Maker Protocol is governed by MKR token holders to ensure its stability, transparency and efficiency. The Maker protocol uses Executive Voting and Governance Polling to moderate the financial risk of DAI by means of governance. Each MKR token locked in a voting contract equals one vote.
MakerDAO, the first entity inside the larger Maker ecosystem, was created in 2015 by Rune Christensen, an entrepreneur from Denmark. Christensen graduated from Copenhagen University with a degree in biochemistry and studied international business at the Copenhagen Business School.
A Season of Value and Rewards
It was about time we introduced this successful project to you via the Coinmetro exchange. DAI and the organization behind it stand up to the idea of an unbiased global financial system, offering inclusive and accessible economic models for everybody. A vision with which we at Coinmetro resonate.
Thus our summer campaign is carrying on with more valuable listings. Last week, several other significant tokens got listed on Coinmetro exchange as well: KSM (Kusama), NEAR (NEAR Protocol), MATIC (Polygon) and NOIA (Syntropy) are now available on our exchange. Make sure you check them out and familiarize yourself with the projects.
How are you spending this summer? How are you managing your portfolio so that you can traverse this period with ability? Now may be a good time to diversify your investments, and do so with assets and projects who have proven their value over time. Bear markets are critical periods where real value is being separated from fast-fading fads. At the moment, at Coinmetro, we are focused on delivering only projects and assets that can make a positive change in your life and drive your portfolio forward.
Join the ever-growing Coinmetro community on Discord and Telegram and let us know what you think! To include DAI and other valuable assets in your portfolio today, take action now and sign up to our platform in just a few steps.
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