How To Tell Your Friends About The Dai Stablecoin
Stablecoins have a lot to offer. Making them more accessible is worth trying. So I created a little resource exactly for that.
Even in the land of crypto — a land filled with idealogical disagreements and controversies — stablecoins stand out as a hot-button topic. It seems that you either love them or hate them.
What are stablecoins, you ask? Put simply, stablecoins are cryptocurrencies that attempt to have stable value in fiat currency terms. The simple, most common example is pegging the currency to the US Dollar: One unit of stablecoin, one dollar. That’s it.
If you love them, you see them as a way to deliver many of the promises of crypto: Banking the unbanked, giving people direct control over their money, unleashing more equal and fair markets for consumer finance and payments… all, without tying these benefits to the volatile nature of crypto-assets such as Bitcoin.
If you hate them, you see them as a false premise; something that is doomed to fail, or even worse: A risk for the true liberating power of crypto-assets, power that stems from their limited supply and predictable creation schedule.
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I’m writing this because, while I acknowledge the risks and downsides, I’m a supporter of stablecoins. I believe they could be instrumental in bringing about a more equitable financial ecosystem for the digital age.
There are several approaches to creating stablecoins, each with its own set of cons and pros. I encourage you to research the subject if you have not done so.
In this article, I chose to focus on one of the most interesting and ambitious projects in the space — MakerDAO’s Dai stablecoin. The Maker team chose a collateralized, algorithmic approach and is executing on a roadmap to complete decentralization of the currency. Even if you’re not a believer in stablecoins, you might be able to admit that the project is fascinating for technical, financial and behavioral reasons.
As part of my support for the project, I have decided to create a simple, user-level resource for Dai. The idea is to explain the very basics to a crowd that is likely not a crypto expert and try to make it more approachable. To that end, I created a couple of websites:
- “What is Dai?” — an explainer site about Dai
- Dai Central — a simple portal to Dai. Right now, it shows the current Dai market price and links to the relevant resources. In the future, it might contain other Dai-related utilities, news, and more.
It’s a free resource that I created with the hope the community finds it useful. If you’d like to have more insight into the process and thinking that led me to create this, please see this Reddit post.
If you have ideas, feedback, or would like to somehow help or cooperate, please feel free to ping me on Twitter.
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