Log In
CoinEx Academy

What Is DAI and How to Buy DAI Crypto?

2023-12-21 06:53:25
DAI crypto

In our commitment to continually broaden our offerings, we are introducing a new project addition: DAI. DAI is a decentralized cryptocurrency that is managed by MakerDAO and pegged to the United States dollar, maintaining price stability.

In this article, we will explore the DAI stablecoin, discussing how it works. We will examine DAI, its statistics, DAI collateral assets, and the features of the DAI stablecoin. Finally, we will conclude by providing a step-by-step guide on how to purchase the DAI stablecoin.

What Is Maker Protocol?

The Maker Protocol is a decentralized finance (DeFi) system built on the Ethereum blockchain, managed by MKR token holders through scientific governance. It enables users to generate the stablecoin Dai by leveraging collateral assets approved by the community-driven Maker Governance process.

The Maker Protocol stands as a pioneering force, particularly through its multi-collateral Dai (MCD) system. This innovative framework enables users to generate Dai, a decentralized stablecoin developed and managed by MakerDAO, by leveraging collateral assets approved by the decentralized governance process known as "Maker Governance."

What Is DAI?

DAI Stablecoin is a decentralized, collateral-backed cryptocurrency on the Ethereum blockchain, managed by MakerDAO. It is designed to maintain a 1:1 peg with the US Dollar, providing stability and versatility within the decentralized finance (DeFi) ecosystem.

DAI provides stability and reliability to users. Individuals and businesses can access safe-haven assets and liquidity, with DAI finding applications in diverse financial realms such as mortgage loans, margin trading, international transfers, and supply chain finance. The Maker Protocol, governed by the MKR token holders, plays a pivotal role in ensuring the stability, transparency, and efficiency of the DAI stablecoin.

In a landscape characterized by the volatility of traditional cryptocurrencies, DAI's value is maintained through a full mortgage guarantee of assets on the blockchain, ensuring that 1 DAI is equivalent to 1 USD. DAI's unique approach enables users to either exchange DAI directly or collateralize it to access the benefits of applications such as mortgage loans, margin trading, international transfers, and supply chain finance.

Beyond its stability and safety, DAI exhibits versatile utility, mirroring the functions of traditional money. As a store of value, DAI's design as a stablecoin ensures that it retains its value even in volatile markets. Functioning as a medium of exchange, DAI is employed globally for various transactional purposes, facilitating the sale, purchase, and exchange of goods and services. DAI serves as a unit of account within the Maker Protocol and specific blockchain decentralized applications, streamlining accounting and pricing processes. DAI also acts as a standard of deferred payment, enabling users to settle debts within the Maker Protocol. This multifaceted functionality positions DAI as a comprehensive and reliable solution within the decentralized financial landscape.

DAI Statistics

Token Symbol: DAI

Market Capitalization: $5.3 Billion

Total Supply: 5,347,888,596 DAI

Circulating Supply: 5,347,888,596 DAI

Trading Price: $1

DAI Collateral Assets

The stability and functionality of DAI stem from its reliance on collateral assets, a crucial element in the Maker Protocol's architecture. Collateral assets, digital assets approved by MKR holders, play a pivotal role in generating, backing, and maintaining the stability of DAI within Maker Vaults. These assets serve as the foundation for the decentralized governance process, representing the collective decisions of the MKR token holders who actively participate in shaping the Maker Protocol.

In the process of generating DAI, the Maker Protocol accepts a diverse range of Ethereum-based assets approved by MKR holders as collateral. The inclusivity of collateral options allows for flexibility in the system, fostering a dynamic environment where various assets contribute to the stability of the DAI stablecoin. Furthermore, the Maker decentralized governance process ensures that MKR holders not only approve collateral assets but also set Risk Parameters corresponding to each accepted asset.

This strategic approach adds an extra layer of risk management, tailoring the protocol's response to the stability and reliability of different assets. The decentralized governance mechanism, facilitated by MKR holders, plays a key role in making informed decisions that collectively define the collateral landscape, reinforcing the robustness and adaptability of the Maker Protocol.

Features of DAI Stablecoin

DAI stablecoin provides a range of features, including:

  1. Decentralization: DAI is a decentralized stablecoin, meaning it operates on a blockchain without a central authority. The Maker Protocol, which governs DAI, is built on the Ethereum blockchain, and decisions regarding the protocol are made through decentralized governance by MKR token holders.
  2. Collateral-backed Stability: DAI's value is maintained through a full mortgage guarantee of assets on the blockchain. Users can generate DAI by leveraging collateral assets approved by the decentralized governance process.
  3. Versatility in Applications: DAI is designed to be versatile and finds applications in various financial realms within the decentralized finance (DeFi) ecosystem. It can be used for mortgage loans, margin trading, international transfers, and supply chain finance.
  4. Store of Value: DAI is a stable store of value, providing a reliable option for individuals and businesses seeking asset preservation in volatile markets.
  5. Medium of Exchange: DAI functions as a medium of exchange globally, facilitating the sale, purchase, and exchange of goods and services.
  6. Unit of Account and Standard of Deferred Payment: DAI serves as a unit of account within the Maker Protocol and specific decentralized applications on the blockchain. It streamlines accounting and pricing processes within the ecosystem.

These features collectively contribute to the attractiveness and reliability of DAI as a stablecoin in the decentralized finance space.

Where to Buy and Trade DAI Crypto?

CoinEx is a global cryptocurrency exchange trusted by over 5 million users worldwide with a 100% reserve. With support for 700+ tokens, including DAI stablecoin, users can trade easily and seamlessly. To purchase DAI cryptocurrency on CoinEx, follow the steps below:

  1. Create an Account: Start by signing up for a CoinEx account via CoinEx Web app or mobile application.
  2. Deposit Funds: After logging in, deposit funds into your CoinEx account using any supported cryptocurrencies or deposit methods available on the exchange. Having funds in your account enables you to execute trades seamlessly.
  3. Navigate to DAI Trading Page: Once your account is funded, go to the dedicated DAI trading page on CoinEx. You can find a search box and enter the term DAI to swiftly locate the trading pair associated with DAI tokens.
  4. Choose a Trading Pair: Select the trading pair DAI/USDT to trade DAI against USDT (Tether).
  5. Specify the Purchase Amount: Determine the quantity of DAI tokens you want to purchase. Input the amount in the trading interface, which will calculate the corresponding cost based on the current market price.
  6. Execute the Trade: With the specified amount, proceed to execute the trade. Confirm the details, and if you are satisfied, submit the order.

By following these comprehensive steps, you can easily trade DAI tokens on CoinEx, taking advantage of the available trading pairs.

What Is Maker and How to Buy MKR Tokens?
What Is VeChainThor and How to Buy VET Tokens?