Mercuryo added DAI cryptocurrency

Decentralized cryptoservices have made financial products more accessible to users. Developers have created cryptocurrencies that are identical to fiat currencies, but their issuance and accounting are decentralized. In this article, we will talk about one of such cryptocurrencies — the DAI stablecoin.

What is DAI?

DAI is a decentralized cryptocurrency based on the blockchain, pegged to the US dollar exchange rate in a ratio of 1:1. The DAI stablecoin was developed by MakerDAO (MKR) on the basis of the Ethereum platform. DAI allows crypto investors and holders to hedge their assets, compensating for the risks arising from the high volatility of cryptocurrencies.

How DAI works?

The accounting and issuance of DAI tokens are decentralized. This means that a third party cannot interfere with the exchange and transaction process. This function is performed by a smart contract that works independently and automatically monitors the fulfillment of obligations by the parties who concluded the transaction. A smart contract in the DAI ecosystem is called collateralized debt position (CDP) and manages the issuance and repayment of cryptocurrency.

To issue new DAI tokens, the holder must provide a deposit in ETH. The issue and repayment process looks like this:

1. The holder deposits, for example, 1 ETH for collateral. For convenience, we will round up the cost of cryptocurrency to $200.

2. After that, ETH coins are converted to WETH and fall into a special pool (PETH), where they remain locked flesh until repayment.

3. For a loan of tokens DAI the deposit amount is 2:1. Thus, when depositing 1 ETH, the holder receives 100 DAI, which is equivalent to 100 US dollars.

4. When a user wants to repay the borrowed amount of DAI, they need to redeem ETH by paying 100 DAI with interest. The interest rate is 1% per annum.

5. As soon as the holder redeems ETH coins, they are returned to his crypto wallet.

DAI is part of DeFi — decentralized economy that allows users to access financial products without intermediaries: banks and other credit organizations. This reduces the cost of services. Just compare the rate of the DAI platform and centralized credit services. The interest paid goes to MKR token holders to maintain a decentralized ecosystem.

Where DAI is traded?

The DAI cryptocurrency is now available in non-custodial Mercuryo wallet, which gives users full control over their funds. After a simple verification process, users can sell and buy the DAI cryptocurrency, as well as other cryptocurrencies such as BTC, ETH, OKB, ALGO, and TRX.

Advantages of the Mercuryo wallet

• Multi-currency support. Mercuryo supports 9 top cryptocurrencies and regularly expands the list of available coins.
• Security. Mercuryo is a non-custodial crypto wallet. This means that the company does not store private keys and does not control customer transactions.
• User-friendly mobile application. that allows you to exchange and transfer cryptocurrency anywhere.
• Fast exchange. Users can easily sell at a favorable rate and withdraw cryptocurrency to their card directly in the app.