Review on Dai by Yenkelys Barcenas
DAI. A Stable Coin Backed By Ether Viculated To The US Dollar
Dai is a stablecoin backed by collateral assets anchored to the value of the US dollar, created on the Ethereum blockchain, it uses Ether as a collateral asset through unique smart contracts called collateralized debt positions. Dai emerges as a novel project to minimize price volatility, with the guarantee of price stability, as a substitute for bitcoin where it fails Dai remains firm.
Experts explain that Dai prices are maintained through a smart contract system that is managed on an Ethereum network lending system, without reliance on a centralized bank or third party. Additionally, they say that to create Dai, someone with a balance in Ether would deposit their crypto in what is called a "collateralized debt position," which is essentially a smart personal vault that holds their Ether. In exchange for depositing the Ether as collateral, Dai is generated in the name of the Ethereum holder.
Dai can be used like any cryptocurrency, exchange, buy or pay and with an additional attraction granted by the marker protocol, such as savings or investment through the function called Dai Interest Rate (DSR), making it a reserve of value without depreciates significantly over time, this allows investors to generate savings by locking their Dai into the DSR contract in the Maker Protocol.
To get or generating Dais is very simple, it can be obtained from exchanges or generated from various forms of cryptographic collateral by anyone, and then easily stored or transferred anywhere in the world. Dai has been considered by experts as an investment alternative, its developers defined it as a cryptographic asset that allows its users to save and at the same time generate interest, have access to decentralized loans and make payments based on the value of the US dollar. with the technology of cryptocurrency blockchain. Without a doubt, Dai is an interesting and constantly growing project, so the time could come when its operation is much better than that of bitcoin and it becomes the best cryptographic option on the market for those who know its systems.
Pros
- It is a versatile stablecoin.
- Users maintain full and independent control of their funds.
- Dai does not lose its value and is resistant to market fluctuations.
- It is impartial and has no borders; it is available to everyone and everywhere.
- They have no usage limitations.
- It offers financial independence to all its investors.
Cons
- The Protocol can be difficult to understand and navigate for those new to the subject.
