Review on Dai by Paul Maduagwu
$DAI owns decentralized finance.
Dai $DAI is a decentralized Stable coin, it maintains its value at $1. It's an ERC20 token on Ethereum blockchain, though its also available on some other layer 2 blockchains like Matic Network. $DAI is decentralized because it is run by smart contracts and isn't backed by dollars in a bank. Instead, it’s backed by collateral on the Maker DAO platform (A platform for decentralized borrowing and lending).
The project thus is backed by cryptocurrency, which is more volatile in value than US dollar, which also increases risk for $DAI holders. Its decentralization also means that making transactions with $DAI does not require any account creation or KYC processes and it can't be censored by governments or regulatory bodies.
. It is one of the most private Stable coins available.
These are the reasons why I listed its decentralization as both a pro and a con. Overall $DAI stable coin is a good project, popular, used by thousands of people in decentralized finance, daily transactions and savings.
Pros
- Decentralized.
- High stability at $1.
- Widely adopted in decentralized finance.
- Backed by a trusted project (Maker DAO).
- ERC20 token, can be stored on any Ethereum token compatible wallet.
Cons
- Some might prefer a centralized option when it comes to Stable coins.
- Listed on a handful of Exchanges.
