DAI is a unique decentralized stablecoin with a value of 1:1 anchored to the US dollar. It does not rely on the reserves of centralized institutions, but maintains its stability through an open and transparent on-chain asset collateralization system, which makes it stand out among the numerous stablecoins. DAI provides a more native solution to the digital world. For users who value decentralization principles and on-chain verifiability, DAI is undoubtedly an important choice in the stablecoin field that deserves attention and understanding.

1. What is a DAI stablecoin?

DAI is a digital asset running on the Ethereum blockchain with the goal of maintaining the stability of value and making it a reliable medium of transactions and store of value in the digital world. Unlike other stablecoins, DAI issuance and management is not controlled by a company, but is governed through a decentralized autonomous organization (DAO) called MakerDAO. This means that anyone can generate DAIs based on rules through an open smart contract system. This decentralized feature brings high transparency and censorship resistance to DAI, as all its operations and collateral status are publicly verifiable on the blockchain.

2. The official website address of the Global Stable Coin Security Exchange

1. Binance Binance:

2. Ouyi OK:

3. HTX Huobi:

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4. Gate.io:

3. How to maintain price stability in DAI?

The stability mechanism of DAI is the core of its design, mainly relying on excess collateral and autonomous adjustment of the agreement .

1. Over-collateralization

If a user wants to obtain DAI, he must first lock digital assets worth more than the generated DAI as collateral in the smart contract of the Maker protocol (called "treasury") as collateral, such as Ethereum (ETH) or other assets accepted by the community. Typically, the mortgage rate requirement is much higher than 100% (e.g. 150% or higher). This means that to generate a $100 DAI, users may need to lock in $150 ETH. This additional asset buffer is a key defense against collateral price fluctuations.

2. Independent price adjustment mechanism

The Maker protocol has built-in a set of economic incentives to ensure that the price of DAI can automatically return to $1.

When the price of DAI is higher than USD: This means that the market demand for DAI is strong. The protocol incentivizes users to lock in more collateral to generate new DAIs and sell them for profit. Increased supply will naturally push the price back to $1. At the same time, MakerDAO can reduce the "stability fee" (i.e. the interest rate for lending DAI) and encourage more people to generate DAI.

When the DAI price is below $1: This means the market is oversupply. At this time, users holding a mortgage vault will find that it is a cost-effective behavior to purchase DAI from the market for less than US$1 to repay their positions. This demand for repurchase will drive up the price of DAI. At the same time, MakerDAO can increase the "stability fee", inhibit the generation of new DAIs, and incentivize repayment.

3. Liquidation procedure

If the market value of the collateral falls sharply, causing the collateral rate to be lower than the security line, the system will automatically trigger the liquidation process. The agreement will sell liquidated collateral on the open market to recover the DAI in circulation, thus ensuring that each DAI has sufficient asset support behind it and protect the solvency of the entire system.

4. What is the difference between DAI and other stablecoins?

DAI's design makes it significantly different from mainstream stablecoin types.

1. Compare fiat currency collateralized stablecoins (such as USDC, USDT)

Different collaterals: USDC and USDT are issued by centralized companies, claiming that they have equivalent USD cash or cash equivalents behind them as reserves and are stored in traditional financial institutions. DAI's collateral is other digital assets that are open to blockchain.

Different transparency: DAI's staking situation is completely transparent, and anyone can view it in real time through a blockchain browser. The reserves of fiat currency pledged stablecoins rely on audit reports regularly released by the issuer, and the transparency is relatively low.

The trust basis is different: using DAI, trusting code and decentralized protocols. With USDC or USDT, what is trusted is the issuing company and its compliance.

2. Comparison algorithm stablecoin

Different stability foundations: DAI is a stablecoin based on excess collateral for real assets, with solid asset support for value. Pure algorithmic stablecoins (partially failed projects) do not rely on collateral, but instead adjust supply and demand through algorithmic models, trying to maintain price stability. This type of model has proven to be very fragile in extreme market environments and is prone to falling into a "death spiral". Although DAI's over-collateralization model is less capital efficient, it is more robust.

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