What is the point of DAI?

What is the point of DAI?

One of the main uses for DAI is as a stable hedge or counterweight against the volatility of more popular crypto-assets such as Ethereum or Bitcoin. The stable value of DAI means it is good for investors or traders who believe the market is about to go down.

What is DAI backed by?

Dai is built on the Ethereum network and backed by Ether, meaning that it is completely decentralized because its price stability is sustained on through a system of smart contracts, and does not rely on any banks, governments, or other centralized third party.

Which Crypto is most stable?

Ethereum is one of the most popular and stable cryptocurrencies founded by blockchain enthusiasts Joe Lubin and Vitalik Buterin (current CEO of ethereum).

Can a stablecoin crash?

What are stablecoins' risks to consumers? That depends on which stablecoin you are talking about. Those tied to digital assets like Ether could crash if it does. Collateralized stablecoins run a risk of fraud, that the reserves they claim are backing the asset are fictional.

What happens if the price of Dai goes too low?

• If the Dai price falls too low or rises too high, the CDP gets sold. The hope is that this system will drive the Dai price back to $1. The CDP transactions are credit swaps carried out by traders called Makers. The Makers are paid for transactions in Dai.

When to use Dai and why you should be using it?

• So you can use it to store value and protect yourself against hyperinflation. For example if you needed to pay a lot of people everyday, you could write a simple script to do this for you. And because Dai is decentralized you can send Dai any day of the week at any time.

What does the stable value of Dai mean?

• The stable value of DAI means it is good for investors or traders who believe the market is about to go down. While a few retailers accept direct payments of cryptocurrency, the overwhelming majority do not.

Where can I buy Dai on the market?

• As a user of Dai, you don't need to worry about how this works. You can buy Dai on any exchange and know that it'll be worth close to $1 well into the future. Here is a video of a much better job of explaining it than I am doing: If playback doesn't begin shortly, try restarting your device.