Dai

DAI Price

What is Dai?

Dai is a stablecoin issued by Maker Protocol. Its first stablecoin iteration was known as the Single Collateral Dai (SAI), which used Ether (ETH) as collateral. 

Two years later in 2019, the Foundation released the Multi-Collateral Dai (DAI), phasing out SAI. The platform has enjoyed widespread adoption and is the largest decentralized lending platform with around $2.58 billion in total value locked (TVL), as of December 2020.

What can Dai (DAI) do?

Dai has several strong benefits and use cases. Most notably, Dai’s soft peg to the US Dollar helps mitigate price volatility. In the cryptocurrency space where price swings are common and dramatic, this feature helps preserve Dai’s value and promotes its use as a medium of exchange. 

Additionally, the stablecoin’s decentralized nature means that it is highly composable with other decentralized applications (Dapps) such as Compound, Uniswap etc. It also provides greater transparency and censorship resistance compared to centralized solutions. 

The source code for the protocol can be viewed freely by anyone who wishes to do so. Dai holders can also save their Dai and earn interest through the Dai Savings Rate (DSR) mechanism. Further reading on Dai’s benefits and use cases can be found in Maker’s whitepaper and ecosystem page. 

What cryptocurrencies can I use as collateral?

Maker provides a list of cryptocurrency assets that can be used as collateral on Oasis’ borrow tab. As of December 2020, there are 16 supported assets, each with their own differing collateralization ratios and stability fees. The addition of new collateral assets, as well as the determination of collateralization ratios and stability fees, are decided through voting on Maker’s governance platform. 

How does Dai work?

In principle, Dai is similar to a loan or mortgage. In traditional finance, these credit facilities are obtained from financial institutions upon fulfilling several stringent requirements such as the provision of sufficient collateral, robust credit scores and compliance with KYC and criminal background checks. The key differences with Dai however, is that only collateral in the form of cryptocurrencies is needed, and Dai loans are issued in a decentralized manner via smart contracts. 

The stablecoin’s soft peg to the US Dollar is also another distinguishing feature, maintained through supply and demand auctions, the Dai Savings Rate (DSR) and Stability Fees. For instance, if Dai >$1, users would be incentivized to mint more Dai and lock-in additional collateral. The minting of more Dai will increase its supply and thus, bring Dai’s value back to its target price. 

The DSR and Stability Fees can also be altered to incentivize less/more Dai given if prices remain sticky. The inner workings of Dai’s soft peg can be read on its auction documentation here, as well as briefly in the whitepaper. 

Where can you buy Dai?

DAI tokens can be traded on centralized crypto exchanges and decentralized exchanges. The most popular exchange to buy and trade Dai is Kraken, where the most active trading pair DAI/USDT has a trading volume of $949,150.39 in the last 24 hours. Other popular options include Niza.io and Curve (Ethereum).

What is the daily trading volume of Dai (DAI)?

The trading volume of Dai (DAI) is $229,843,857.84 in the last 24 hours, representing a -5.20% decrease from one day ago and signalling a recent fall in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for Dai (DAI)?

Dai (DAI) reached an all-time high of $1.22 and an all-time low of $0.8820. It’s now trading -18.00% below that peak and 13.40% above its lowest price.

What is the market cap of Dai (DAI)?

Market capitalization of Dai (DAI) is $4,580,176,044 and is ranked #27 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of DAI tokens (4.6 Billion tokens are tradable on the market today).

What is the fully diluted valuation of Dai (DAI)?

The fully diluted valuation (FDV) of Dai (DAI) is $4,580,176,044. This is a statistical representation of the maximum market cap, assuming total number of 4.6 Billion ETH tokens are in circulation today.

How does the price performance of Dai compare against its peers?

With a price increase of 0.00% in the last 7 days, Dai (DAI) is underperforming the global cryptocurrency market which is up 10.00%, while underperforming when compared to similar Stablecoins cryptocurrencies which are up 0.70%.

How to add Dai (DAI) to MetaMask?

Adding Dai (DAI) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import DAI as a token. You can copy DAI’s contract address (0x6b175474e89094c44da98b954eedeac495271d0f) and import it manually, or if you've installed MetaMask's chrome extension, add DAI to MetaMask with one click on CoinGecko.

Add DAI to MetaMask.