What is Multi-collateral DAI? (in 60 seconds)
Published in
1 min readMay 24, 2020
Multi-collateral DAI (Dai) is a stablecoin (pegged to $1) backed by cryptocurrencies staked and locked up in MakerDAO’s (decentralized lending platform) defi protocol. The cryptocurrencies locked up always exceed the value of Dai in circulation providing a cushion for volatility, and the price to stay pegged near $1. If the value of Dai strays from $1 then pricing mechanisms flip on to correct the price. Often times Dai will be valued at anywhere from 99 cents to 1.01 dollars.
