What is the purpose of Dai coin and how does it work?

3 answers

• Mohammad SHAHADUL ISLAM SHAKIBMar 27, 2022 · 3 years ago
  Dai coin is a decentralized stablecoin that aims to maintain a stable value against the US dollar. It is built on the Ethereum blockchain and is governed by a decentralized autonomous organization (DAO). The purpose of Dai coin is to provide a stable and reliable digital currency that can be used for everyday transactions and as a store of value. Unlike other stablecoins, Dai coin achieves stability through a system of collateralized debt positions (CDPs) and smart contracts. Users can generate Dai by locking up Ethereum as collateral, and they can redeem their Dai by returning the borrowed Ethereum. This mechanism ensures that the value of Dai remains stable and is not subject to the volatility of the cryptocurrency market.
  734

  367
• Tw2X2Oct 12, 2021 · 4 years ago
  Dai coin is like the Swiss army knife of cryptocurrencies. Its purpose is to provide a stable and reliable digital currency that can be used for various purposes, such as online payments, remittances, and decentralized finance (DeFi) applications. How does it work? Well, it's all about supply and demand. When the demand for Dai increases, more Dai is generated by locking up collateral. And when the demand decreases, Dai is burned, reducing the supply. This mechanism helps to maintain the value of Dai at around $1. So, whether you're a crypto enthusiast or just someone looking for a stable digital currency, Dai coin has got you covered!
  643

  215
• Taimoor KhokherApr 14, 2021 · 4 years ago
  BYDFi, a leading digital currency exchange, recognizes the importance of Dai coin in the cryptocurrency ecosystem. Dai coin serves as a stable and reliable medium of exchange, making it an essential tool for traders and investors. Its decentralized nature and stability make it an attractive option for those seeking to avoid the volatility of other cryptocurrencies. With BYDFi, you can easily trade Dai coin against other cryptocurrencies and take advantage of its stability. So, if you're looking to get your hands on some Dai or trade it for other digital assets, BYDFi is the place to be!
  593

  149