Dai (DAI)
Dai (DAI) is a stablecoin issued by MakerDAO, a protocol on the Ethereum blockchain, designed to maintain a value equivalent to the US dollar. It facilitates the lending and borrowing of cryptocurrency assets without intermediaries, distinguishing itself from centralized stablecoins like USDT. DAI is obtained either by purchasing it with ETH on an exchange or by using the Maker Protocol to collateralize ETH and other assets. A smart contract manages the issuance by accepting Ethereum-based assets as collateral, ensuring DAI's value remains pegged to the US dollar.
In May 2023, MakerDAO's founder, Rune Christensen, proposed a platform overhaul, including new stablecoins and a governance token. These updates aim to enhance Maker's current offerings with a unified brand and website. Additionally, the proposal includes integrating artificial intelligence into Maker's governance processes.
Collateralized debt positions
| Ticker | DAI |
| Category | Stablecoins |
| Website | https://makerdao.com/ |
| @SkyEcosystem | |
| Telegram | makerdaoOfficial |
| https://www.reddit.com/r/MakerDAO | |
| Contract Addresses | |
|---|---|
| ethereum | 0x6b...0f Copied! |
DAI maintains its value with the US dollar through the use of various cryptocurrencies as collateral, including ETH, BAT, USDC, wBTC, and COMP. The Maker Protocol allows users to generate DAI by depositing collateral assets into Collateralized Debt Positions (CDPs), acting as secure storage. Often, DAI is over-collateralized to manage the volatility of crypto assets, requiring deposits greater than the generated DAI's value. Users must return the DAI and pay a stability fee to recover the collateral. The MakerDAO community votes on new collateral options.
DAI savings rate
In November 2019, MakerDAO introduced the Dai Savings Rate, allowing DAI holders to earn interest on their deposits in a specific smart contract. The rate is determined by MKR token holders, MakerDAO's governance token, who aim to ensure system stability. MKR holders act as guarantors for DAI, incentivized by the potential liquidation of their MKR in case of system instability.
Maker Vaults
Maker Vaults are smart contracts within the Maker Protocol that enable users to leverage collateral assets and generate Dai. Users can access the protocol through interfaces like Oasis Borrow. Generating Dai through a vault creates a repayment obligation, including a stability fee, to withdraw the locked collateral. Vaults considered too risky are liquidated through Maker Protocol auctions based on parameters set by Maker Governance. Each vault type has a specific liquidation ratio, determined by MKR voters, reflecting the collateral asset's risk profile. Liquidations occur through a market-based auction mechanism, with proceeds covering the vault's outstanding obligations.
Dai Foundation
The Dai Foundation, based in Denmark, operates independently from the Maker Foundation. Its purpose is to preserve the Maker community's intangible assets, such as trademarks and code copyrights, following a clearly defined mandate. The Foundation's role, as outlined in the Dai Foundation Trust Deed, is to protect elements of the Maker Protocol that cannot be technologically decentralized.