How do decimals work in the DAI stablecoin?

3 answers

• Gaby MonrealJul 27, 2020 · 5 years ago
  Decimals in the DAI stablecoin are used to represent fractional amounts of the currency. The DAI stablecoin uses 18 decimal places, which means that it can be divided into very small units. This allows for precise and granular transactions, as well as easy conversion between different amounts of DAI. The decimal system in DAI is crucial for its functionality as a stablecoin, as it ensures that the value of 1 DAI remains stable and can be easily pegged to the US dollar.
  473

  237
• Priyanshu HaldarOct 20, 2023 · 2 years ago
  In the DAI stablecoin, decimals are used to represent the smallest unit of the currency. Each decimal place represents a fraction of the whole, allowing for precise calculations and transactions. The use of decimals in DAI also enables easy integration with other cryptocurrencies and decentralized applications, as it provides a standardized unit of value. Overall, decimals play a crucial role in the functionality and usability of the DAI stablecoin.
  453

  151
• olumide abiodun olumide abioduJun 11, 2023 · 2 years ago
  Decimals in the DAI stablecoin are implemented using the Ethereum blockchain's ERC20 token standard. This standard allows for the division of tokens into smaller units using decimals. The DAI stablecoin uses 18 decimal places, which means that it can be divided into 10^18 smaller units. This level of precision is necessary for the stability and usability of DAI, as it allows for seamless integration with other Ethereum-based projects and ensures that the value of DAI remains pegged to the US dollar. BYDFi, a decentralized exchange, also supports DAI and its decimal system, making it easy for users to trade and interact with DAI on the platform.
  652

  163