DAI (MakerDAO)

About

DAI is a decentralized stablecoin issued by MakerDAO, an Ethereum-based protocol. It is designed to maintain a stable value relative to the U.S. dollar through a system of smart contracts and over-collateralization with various cryptocurrencies. Unlike traditional stablecoins backed by fiat reserves, DAI's value is maintained by users locking collateral assets into smart contracts to generate DAI. This mechanism ensures that the system always holds more collateral value than the DAI it issues, providing stability in volatile markets. DAI's decentralized governance model, powered by the MKR token, allows holders to participate in decision-making processes, such as setting stability fees and risk parameters. This community-driven approach makes DAI a foundational asset in the DeFi ecosystem, widely used in lending, borrowing, and trading platforms. DAI's versatility and stability have made it a key component in decentralized finance, offering a stable store of value and facilitating transactions without intermediaries. Its integration across numerous platforms underscores its importance in the blockchain ecosystem.