Review on Single Collateral DAI by jesus ruiz
DAI, the first decentralized stablecoin
To talk about DAI one should start by saying that it is an ERC20 token on the Ethereum blockchain that has a constant value of one US dollar.
DAI is an algorithmic stable coin issued by MakerDAO, which is mainly used as a means to lend and borrow crypto assets on this platform, without the need for an intermediary, creating a transparent system with minimal restrictions.
MakerDAO was founded in 2015 by CEO Rune Christensen, and Maker Protocol, then in December 2017 DAI was launched.
DAI is mainly used, as a backup against the volatility of popular cryptocurrencies such as Ethereum or Bitcoin. The stable value of DAI means that it is good for those investors who believe that the market is about to crash. In this case, they switch their cryptoassets to DAI and ensure that it will remain with a stable value until the value of the cryptocurrency they trade with recovers, then reverse the trade and continue trading.
The price of Dai (DAI) today is US$0.994860 with a trading volume of US$464,342,115 in 24 hours. The price has dropped to -0.1% in the last 24 hours.
Pros
- Stable currency backed by the U.S. dollar.
- Used as a safe haven for your cryptocurrencies in case of a market crash
- Can be sent and received easily and can be used as a means of savings
Cons
- none at this time
