#174
On 528 watchlists

Dai

DAI

About

Dai is a decentralized cryptocurrency stabilized against the value of the US dollar. The collateralized assets backing Dai are other cryptocurrencies instead of fiat and are held within smart contracts rather than in institutions.

$5,222,937,806

$778,333,707

30d

+0%

N/A

Reward Options
Risk
Complexity
Reward
Adj. Reward
Minimum
Lock Up
Avg. Fee
Staking Ratio
Lend DAI
Risk
moderate
Complexity
easy
Reward
4.94%
Minimum
-
Lock Up
-
Staking Ratio
-
Adj. Reward
4.94%
Avg. Fee
-

Calculate how much you can earn by staking Dai. Results vary based on the staking amount, term, and type selected.

USD
DAI

Advanced calculator

Revenue over time (USD / week)

Total Reward Rate

0%

or 0% annualized

Est. Monthly Earning

$0

0 DAI

Est. Yearly Earning

$0

0 DAI

FAQ's

  • What type of Stablecoin is DAI?
  • DAI is a Crypto-backed stablecoin.

    Instead of using dollars or another currency as reserves, we have cryptocurrencies acting as collateral. As the crypto market is highly volatile, crypto-backed stablecoins usually over-collateralize the reserves as a measure against price swings.

  • How does it work?
  • Crypto-backed stablecoins use smart contracts to manage minting and burning. This makes the process more reliable as users can independently audit the contracts. However, some crypto-backed stablecoins are run by Decentralized Autonomous Organizations (DAOs), where the community can vote for changes in the project. In this case, you will have to get involved or just trust the DAO to make the best decisions.

    Let’s look at an example. To mint $100 of a DAI pegged to USD, you will need to provide $150 of crypto working at 1.5x collateral. Once you have your DAI, you can use it how you want. You could transfer it, invest with it, or simply keep it. If you want your collateral back, you’ll need to pay back the 100 DAI. However, if your collateral drops below a certain collateral ratio or the loan’s value, it will be liquidated.

    When the stablecoin is below $1, incentives are created for holders to return their stablecoin for the collateral. This decreases the supply of the coin, causing the price to rise back to $1. When it’s above $1, users are incentivized to create the token, increasing its supply and lowering the price. DAI is one example, but all crypto-backed stablecoins rely on a mix of game theory and on-chain algorithms to incentivize price stability.
  • How is DAI Minted?
  • DAI is created whenever someone takes out a loan on MakerDAO. DAI is destroyed when loans are paid back.