Dai
ATH / ATL
Monthly Returns heatmap
Heatmap summary
Dai posted 1 positive months out of 2. The longest positive streak lasted 1 months, while the longest negative streak lasted 1 months.
- Strongest month
- Jul 2020 +1%
- Weakest month
- Aug 2020 -0.1%
- Longest positive streak
- 1 Jul 2020
- Longest negative streak
- 1 Aug 2020
- Luckiest calendar month
- Jul • avg 1% • 1 mo.
- Unluckiest calendar month
- Aug • avg -0.1% • 1 mo.
Networks
Supported exchanges
About the coin
Dai (DAI) is a cryptocurrency that operates as a stablecoin, aiming to maintain a stable value relative to the US dollar. It is designed to minimize price volatility, making it a potentially useful asset for transactions and as a store of value within the decentralized finance (DeFi) ecosystem.
The creation and management of Dai are overseen by the Maker Protocol, a decentralized autonomous organization (DAO) built on the Ethereum blockchain. This protocol utilizes a system of smart contracts to govern the issuance and stability of Dai.
A key mechanism behind Dai's stability is its collateralization. Users can generate Dai by locking up other crypto assets as collateral within the Maker Protocol. The value of the collateral must exceed the value of the Dai issued, creating a safety margin.
The Maker Protocol supports various forms of collateral, although its primary collateral has historically been Ether (ETH). When users lock ETH, they can mint new Dai. This process is managed through smart contracts that automatically adjust based on market conditions.
To maintain its peg to the US dollar, Dai employs a combination of economic incentives and automated processes. If the price of Dai falls below $1, the protocol may offer incentives for users to buy Dai and lock it as collateral, thereby reducing supply and pushing the price back up.
Conversely, if the price of Dai rises above $1, the protocol may incentivize users to generate more Dai by locking collateral. This increases the supply, aiming to bring the price back down to the target peg.
Dai is not minted by a central authority or a single company. Instead, it is a decentralized stablecoin, with its supply and stability managed by the collective decisions of MKR token holders through the MakerDAO governance system.
MKR token holders have the power to vote on key parameters of the Maker Protocol, including the types of collateral accepted, the stability fees, and other risk management elements that influence Dai's stability and operation.
Dai is available on multiple blockchain networks, allowing for broader accessibility and interoperability. It exists as a token on various popular blockchains, including Ethereum, Polygon PoS, and BNB Smart Chain.
On the Ethereum network, Dai is an ERC-20 token. The contract address for Dai on Ethereum is 0x6b175474e89094c44da98b954eedeac495271d0f. It has 18 decimal places.
On the Polygon PoS network, Dai is also an ERC-20 token. The contract address for Dai on Polygon PoS is 0x8f3cf7ad23cd3cadbd9735aff958023239c6a063. It also has 18 decimal places.
On the BNB Smart Chain, Dai is a BEP-20 token. The contract address for Dai on BNB Smart Chain is 0x1af3f329e8be154074d8769d1ffa4ee058b1dbc3. This version of Dai also utilizes 18 decimal places.
The multi-chain presence of Dai facilitates its use in a wider range of decentralized applications and across different blockchain ecosystems.
Dai's design as a stablecoin aims to provide a reliable medium of exchange and a stable unit of account within the cryptocurrency space, mitigating the price volatility often associated with other digital assets.
In summary, Dai is a decentralized stablecoin designed to maintain a peg to the US dollar through a collateralization system managed by the Maker Protocol and governed by MKR token holders. It is actively deployed on major blockchains like Ethereum, Polygon, and BNB Smart Chain.
Trust & methodology
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Data source: Price and volume snapshots are sourced from Binance using the DAIUSDT market feed.
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