Dai (DAI) GBP Price

Dai Price Data

Dai (DAI) currently has a price of £0.81 and is up 0.013% over the last 24 hours. The cryptocurrency is ranked 39 with a market cap of £2.8B. Over the last 24 hours, it saw £124.2M of trading volume. The token has a circulating supply of 3.5B tokens out of a total supply of 3.5B tokens.

Dai (DAI) is a stablecoin cryptocurrency that is pegged to the value of the U.S. dollar, providing a decentralized and stable digital currency option for users. It is backed by collateral in the form of other cryptocurrencies, allowing for stability and security in transactions.

Unique features of Dai:

Decentralized stablecoin

Dai is a cryptocurrency that stands out for its decentralized nature and stability. Unlike other cryptocurrencies that experience high volatility, Dai aims to maintain a stable value equal to that of the U.S. dollar.

This stability is achieved through smart contracts and collateralization on the Ethereum blockchain. By utilizing these mechanisms, Dai ensures that it is not controlled by any single entity or central authority, making it resistant to censorship or manipulation. Dai's stability is achieved through collateralization. Cryptocurrencies, such as ether, are held in smart contracts called "Collateralized Debt Positions" (CDPs) to back the supply of Dai in circulation. If the value of Dai deviates from the targeted $1, various mechanisms come into play. For instance, if Dai is trading above $1, users can create new Dai by locking up their collateralized assets in the CDPs. Conversely, if Dai drops below $1, the smart contract system can automatically trigger liquidations of collateral to maintain stability.

The decentralized and stable nature of Dai makes it appealing for various use cases. It provides a stable store of value and can be used as a medium of exchange in everyday transactions without the fear of significant value fluctuations. Additionally, Dai enables individuals, businesses, and decentralized applications to engage in commerce and finance with a stable unit of account. In a volatile cryptocurrency space, Dai offers stability and reliability, making it a valuable asset for those seeking stability.

Collateralized with cryptocurrencies

The collateralization mechanism in Dai plays a vital role in guaranteeing a stable value for the cryptocurrency. By requiring users to use their cryptocurrencies as collateral, it establishes a solid foundation supporting the creation of new DAI tokens. This is especially significant in the volatile cryptocurrency market, where the value of cryptocurrencies can fluctuate dramatically in a short period of time. The collateralization feature of Dai provides stability and instills trust in its value. As the collateralized cryptocurrencies maintain their value, the DAI tokens created against them are also considered to have a stable value. This stability makes Dai a more reliable option for transactions and storing value, as it avoids the extreme price volatility often associated with other cryptocurrencies.

Governed by MakerDAO community

Dai is a stablecoin that operates under a unique governance system. The MakerDAO community, consisting of MKR token holders, plays a crucial role in making decisions about the functioning of the Dai ecosystem. This decentralized governance model ensures the independence and accountability of the Dai stablecoin. The MakerDAO community has the power to vote on important proposals that impact the stability and management of Dai. This includes decisions about protocol changes, collateral types, stability fees, and other significant aspects of the ecosystem. By involving users and token holders in the decision-making process, Dai fosters trust and transparency.

Programmable

One key feature of Dai is its programmability, which sets it apart from traditional fiat currencies. By operating through smart contracts on the blockchain, Dai allows developers to program specific conditions and rules into the currency. This enables advanced functionalities, such as the ability to automatically execute transactions or trigger actions when certain conditions are met. The flexibility and programmability of Dai make it an invaluable tool for decentralized finance protocols and supply chain management.

When was Dai created or founded?

Dai was created by the MakerDAO project, which was founded in 2014. MakerDAO is a decentralized autonomous organization that operates on the Ethereum blockchain. The goal of the project was to create a stablecoin that is pegged to the U.S. dollar and is backed by collateral held in the form of cryptocurrencies. Dai was officially launched in December 2017, making it one of the earliest decentralized stablecoins to be introduced to the market. Since then, Dai has gained popularity and has become widely used in the decentralized finance (DeFi) ecosystem.

Who are the founders of Dai?

The founders of Dai are Rune Christensen and Nikolai Mushegian. Rune Christensen, a Danish entrepreneur and the CEO of MakerDAO, has a background in software development and has been involved in the blockchain industry since 2014. Mushegian was a stablecoin pioneer who once donated $1.38 million to Carnegie Mellon University. He died in October 2023, hours after posting a tweet worried that security agencies were going to kill him.