Overview of DAI Stablecoin
DAI is Ethereum's largest decentralized stablecoin, developed and managed by MakerDAO. It serves as foundational infrastructure for decentralized finance (DeFi). Pegged 1:1 to the US dollar, DAI maintains price stability through over-collateralization by on-chain assets.
Key Statistics
- Current Price: $1.0000 (0.00% change today)
- Market Cap: $3.604 billion (Ranked #28)
- Circulating Supply: 3,604,213,732 DAI (99.96% of max supply)
- All-Time High: $8,976.00 (August 2019)
- All-Time Low: $0.0011 (August 2019)
👉 Track DAI price in real-time
How DAI Works
Collateralization Mechanism
DAI is generated when users lock Maker Governance-approved collateral assets into smart contracts. This creates:
- A debt position (CDP)
- New DAI tokens
- Stability fees (paid in MKR)
Governance Structure
MakerDAO operates through decentralized community governance that:
- Approves new collateral types
- Adjusts risk parameters
- Manages protocol upgrades
DAI Price Performance
Historical Trends
| Period | Price Movement |
|---|---|
| 2019 Peak | -99.99% from ATH |
| 2019 Bottom | +90,809.09% from ATL |
| 2023 Average | $0.995 - $1.005 range |
Current Market Behavior
DAI maintains exceptional stability through:
- Automated feedback mechanisms
- Arbitrage opportunities
- Multi-collateral backing
DAI Use Cases
Practical Applications
- DeFi Lending: As collateral for loans
- Cross-Border Payments: Low-cost remittances
- Merchant Payments: Stable settlement option
- Hedging: Against crypto volatility
👉 Learn how to use DAI in DeFi
Frequently Asked Questions
How is DAI different from USDT/USDC?
DAI is algorithmically stabilized through decentralized collateral, while USDT/USDC rely on centralized reserves.
What backs DAI's value?
DAI is primarily backed by:
- ETH and other crypto assets
- Real-world assets (RWAs)
- Surplus buffers in Maker Protocol
Can DAI lose its peg?
While rare, temporary depeg events can occur during market extremes, quickly corrected by MakerDAO's stabilization mechanisms.
How do I acquire DAI?
Major methods include:
- Minting via Maker vaults
- Exchanges (decentralized/centralized)
- OTC desks
Why choose DAI over other stablecoins?
Key advantages:
- No centralized issuer risk
- Transparent on-chain reserves
- Integrated with DeFi ecosystem
Technical Specifications
Audit Information
- Auditor: CertiK
- Last Audit: May 2021
- Security Score: 94/100
Protocol Details
- Type: Multi-collateral
- Blockchain: Ethereum (ERC-20)
- Smart Contracts: Fully verifiable
Future Outlook
Upcoming Developments
- Enhanced Collateral Types: Adding more asset classes
- Governance Improvements: DAO structure upgrades
- Cross-Chain Expansion: Multi-network availability
The DAI stablecoin continues to demonstrate remarkable resilience in volatile markets, maintaining its position as a cornerstone of the DeFi ecosystem through transparent operations and robust economic design.