DAI Stable Coin: An Overview on DAI and Maker Protocol
In 2014, DAI was already in its dev’s head as Danish Rune Christensen launched an open-source project by the name MakerDAO.
The Dai Stable Coin & Maker DAO:
In 2014, Danish Rune Christensen launched an open-source project by the name MakerDAO.
By 2015 Christensen already made MakerDAO’s protocol with the help of developers who joined the community. Maker Protocol became a solution that made it possible to take out loans with cryptocurrency as security.
DAI was launched in 2017 at Maker Protocol through a smart contract on the Ethereum blockchain. The purpose of DAI was to make available a decentralized cryptocurrency that was not volatile and aims to maintain a stable 1: 1 value against the US dollar.
Heads up, if you want to learn more about Stable Coins in general, not just DAI, our partner Treehouse wrote a great piece you can read here — What Are Stablecoins, Are They Important?
1 DAI must therefore be the same as 1 USD, to fight popular digital assets such as Bitcoin (BTC) and Ether (ETH) price volatility. The value of a bitcoin often experiences large fluctuations, rising or falling by as much as 25% in a single day and occasionally rising over 300% in a month that’s why MakerDao aims that Dai can be used as everyday currency so it can maintain a pegged value of a dollar.
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How about you take this post for a ride — It’s on TUSD, the popular stable token:
DAI is Basically Bound to ETH: And That’s a Good Thing!
DAI is technically an Ethereum-based application built on the Ethereum blockchain. Because DAI is a cryptocurrency created on the Ethereum blockchain, DAI can be stored and transferred directly to anyone, anywhere in the world, with the aim of price stability. It would address a basic requirement for the majority of decentralized applications. As such, the potential market for Dai is at least as large as that of the entire blockchain industry.
The following is a short, non-exhaustive list of some of the immediate markets (in both the blockchain and the wider industry) for the Dai Stablecoin System in its capacity as a cryptocurrency with price stability and its use case as a decentralized margin trading platform like Markets & Gambling Applications, Financial Markets, Hedging, Derivatives, Leverage, Merchant receipts, Cross-border transactions, and remittances.
Finally from MakerDao Dai Conclusion: Dai Stablecoin System was designed to solve the crucial problem of stable exchange of value in the Ethereum ecosystem and the wider blockchain economy. We believe that the mechanism through which Dai is created, transacted, and retired, along with the direct Risk Management role of MKR holders, will allow for self-interested Keepers to maintain the price stability of Dai over time in an efficient manner.
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How about you check this piece after you’re done — It’s on LIQUITY and LUSD:
Maker is Aggressive, Which May Motivate Growth:
The founders of the Maker community have established a prudent governance roadmap that is appropriate for the needs of agile development in the short term, but also coherent with the ideals of decentralization over time. The development roadmap is aggressive and focused on the widespread adoption of Dai in a responsible fashion.
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This Article Was Written by Concavian Nemonasa
