DAI The Systematically Sustainable Stablecoin Issued by MakerDAO

The Birth of DAI: Creation and Issuance

The Birth of DAI: Creation and Issuance MakerDAO was first introduced in 2015 by CEO and founder Rune Christensen, and the Maker Protocol the architecture underlying the DAI stablecoin - was launched in December 2017.

While stablecoins like tether offer a cryptocurrency backed by a reserve of fiat assets managed by a central organization, no one entity controls the issuance of DAI.

Instead, users looking to hold DAI submit Ethereum-based assets into a smart contract that uses them as collateral in maintaining DAI's peg to the U.S.

MakerDAO's model for DAI differs from other leading stablecoins.

First, DAI features an unprecedented degree of decentralization.

Third, DAI token holders earn interest on their DAI.

Those who hold MKR, MakerDao's native governance token, set the DAI Savings Rate and act as guarantors for DAI - meaning, their MKR tokens can be liquidated if the system were to crash.

How DAI Tokens Work DAI is an ERC-20 token that can be purchased from centralized and decentralized exchanges.

Advantage of Stability for DAI Holders and Security Features DAI is soft-pegged to the value of the U.S.

Once borrowed, it can be used in decentralized finance (DeFi) applications or blockchain-based games, among other things.

The increased price stability afforded by DAI stablecoins has motivated investors to view DAI as a stable store of long-term value and a viable option for day-to-day transactional purposes, which has dramatically expanded the utility of blockchain technology and cryptocurrency systems as a whole.

DAI Stablecoin Advantages and Use-Cases No Account Minimum: Many individuals worldwide lack the minimum quantity of assets needed to be eligible to open a bank account, but there is no minimum balance amount required to use DAI.

Stable Value: DAI can provide an alternative stable currency and means of financial inclusion for citizens living in locations with severe economic instability.

Find Out More At https://ampraider.com/