Buy Maker Dai

Dai (DAI) is a decentralised US dollar stablecoin operating on the Ethereum network.

Unlike its centralised cousins (i.e. USDT, USDC and PAX), DAI doesn’t promise that its supply is backed 1:1 with US dollars. Instead, it holds a diverse basket of ERC-20 tokens on behalf of users, who are compensated with an equivalent amount of DAI.

When the value of the tokens goes up, more DAI is introduced into the system but people can still buy back their collateral at the original price. When the value of the tokens goes down, parts of the asset basket are liquidated to maintain the peg, meaning your collateralized position will also be reduced and you’ll receive back less than you put in.

DAI has been developing its Collateralized Debt Position (CDP) system since 2014 and it remains the biggest player in the decentralised stablecoin space. DAI’s governance token – allowing holders to vote on changes to the DAI protocol – is known as Maker DAO and is also available on CoinJar.