Review on Dai by Artur Vivo

DAI is a stablecoin maintained and operated by a Decentralized Autonomous Organization (DAO). One of the ERC20 tokens issued using smart contract mechanisms on the Etherum blockchain, worth 1 US dollar (USD).

The DAI creation process involves obtaining a loan on the platform. DAI is what MakerDAO users borrow and pay on time.

The creator of DAO has been promoting DAI since its inception in 2013, and since its inception in XNUMX, the company has maintained steady growth in total market capitalization and usage. Founded by the current CEO Rune Christensen.

As soon as a new DAI appears, it becomes an Ethereum stable token that users can use to pay or yes. There are many stablecoins, but DAI is on a completely different level. In this review, we will explain everything in detail. According to the DAI structure, it is a trustless decentralized stablecoin that has gained worldwide acceptance and use. So the question is, what makes DAI different from others?

Before DAI, there were other cryptocurrencies with enduring value. For example, Tether is one of the oldest and largest stablecoins on the market. Others like Demini Coin, USDC, PAX and even Facebook's upcoming stablecoin called Diem.

While these coins are trying to gain acceptance, DAI has changed the status quo. In this article, we will introduce you to the entire concept, processes and operations of DAI to expand your understanding of stablecoin. Unlike other stablecoins, which depend on the collateral of the company, each DAI is valued at $ 1, hence no particular company controls it. Instead, it uses a smart contract to handle the entire process.

The process begins when a user opens a CDP (Collateralized Debt Position) with Maker and deposits Ethereum or another cryptocurrency. Then, depending on the ratio, Dai will be credited in return.

Some or all of the Dai earned may be returned, and the original Ethereum deposited will need to be returned. The amount of Etherium is also determined by the ratio, which helps keep the price of Dai at around $ 1.

By skipping the first step, the user can also buy Dai on any exchange and know that it will cost about $ 1 in the future. The current version of Dai allows multiple types of cryptoassets to be used to create Dai. Technically, this is an updated version of a stablecoin called the Dai multilateral pledge. The first crypto-asset accepted in this system, besides ETH, is the Basic Attention System (BAT). Moreover, the old version is now called SAI, known as Single-collateral Dai because users can only use ETH collateral to create it.