1H % ROI
24H % ROI
7D % ROI
1H % ROI
24H % ROI
7D % ROI
248 364 168 €
6 065 629 109 DAI
6 065 629 109 DAI
Dai (DAI) is a stablecoin based on Ethereum, issued by the Maker and MakerDAO protocols. The price of DAI is indexed to the dollar, and it is guaranteed by other cryptocurrencies deposited in smart contract vaults every time a new DAI is minted. SAI, the earlier version of the current DAI, could only be guaranteed by a single cryptocurrency. SAI did not support the DAI savings rate, allowing users to earn money by holding DAI tokens. DAI was created by a small group of co-founders.
Dai is what is commonly referred to in cryptocurrency jargon as a stablecoin, that is, a token whose value is fixed and cannot vary from a real currency. In the case of the Dai, this value is backed by the USD, so one DAI token = one dollar.
However, due to the supply and demand specifics of DAI tokens, the price may fluctuate slightly around the one USD mark, trading at times one or two cents below or above that price. However, since the value is pegged to the USD, the price will always swing back around.
Unlike other stablecoins, which are minted after real dollars are locked up somewhere, ensuring the value of the token, Dai uses another system that is linked to cryptographic assets.
It uses the MakerDAO protocol, which allows users to stake some of their cryptocurrencies in exchange for DAI in a special contract. The money staked on MakerDAO serves as collateral and allows the issue of a number of DAI tokens equivalent to the money held on MakerDAO.
Stablecoins are useful, as they allow their holder to minimise their exposure to the risk of market fluctuations. DAI tokens will always be worth their weight in USD, apart from a few rare times when it faces huge buy or sell-side pressure. Either way, these minor fluctuations will only equate to a few cents at most, and the value will always end up going back to a dollar because that is the value guaranteed by the MakerDAO protocol.
Stablecoins also allow their holders to avoid paying taxes when converting their earnings into a fiat currency (pounds, dollars, etc.). In the UK, capital gains tax is only levied on cryptocurrencies when they are converted into GBP. By converting them into a stablecoin, no tax needs to be paid (for the moment, at least!).
Nonetheless, the laws are different in each country and may change over time. We invite you to check out our article on the legal standing of cryptocurrencies (insert link) to find out what rules are in force at the moment.
DAI can also be used as a means of payment for someone who does not appreciate the volatility of cryptocurrencies. So, instead of sending ETH or BTC to a friend or shopkeeper, you can pay with DAI. The person who receives the money will then be guaranteed not to see the money lose several tens of percent of its value in a few days.
There are usually two options for obtaining digital assets. The first is to go to an exchange site that links the fiat world to the crypto world and to buy the desired cryptocurrency with pounds. Unfortunately, this is usually only possible with the biggest cap cryptocurrencies.
The second option is to first buy an intermediate cryptocurrency, such as ETH or BTC, and then exchange those currencies for the desired digital asset. As far as DAI tokens are concerned, you will have to use this option almost every time if you want to buy this cryptocurrency directly. To do this, we invite you to register on one of the reliable exchange platforms that we recommend to our readers. These are serious exchanges that we have personally tested and are safe to use.
However, in the case of DAI tokens, you also have another option to get tokens. If you go to the Maker protocol, you will be able to stake some of your digital assets for a certain period of time in exchange for DAI tokens, while having the option to receive additional tokens thanks to the interest Maker grants you for fronting the cash that serves as collateral for DAI tokens.
At the time of writing, Dai is the third largest cap stablecoin, based on data provided by Coinmarketcap. As a result, it obviously has a great reputation among crypto investors.
For us, we especially appreciate the fact that it is a stablecoin that ensures its value by remaining entirely within in the crypto system. It does not rely on a collateral of physical dollars, as is the case with USDT, for example. In addition, the stability of the DAI token is ensured by ‘ordinary’ people who have decided to stake their digital assets on a special contract, making DAI functional without traditional banking institutions.
If you would like to learn more about how the Dai works, why not check out our full article on the subject, as well as our article on Maker, the protocol behind DAI tokens.