Maker DAO<\/strong>, Dai is created, that is the currency users borrow and payback. The Dai token creates functions simply as a stable Etheruem token, which can easily be transferred between Ethereum wallets and pay for other things.<\/p>\nThe current version of Dai allows multiple types of crypto assets to be used to create Dai. It is technically an updated version of the stable coin called multi-collateral Dai. The first crypto asset besides ETH accepted in this system is Basic Attention System (BAT). Moreover, the old version is now called SAI, known as Single-collateral Dai, because users can only use ETH collateral to create it.<\/p>\n
Maker DAO’s algorithms automatically manage the price of Dai. No single person needs to be trusted to keep the currency steady. A price fluctuation of Dai away from the dollar leads to the burning or creation of Maker (MKR) tokens to bring back the price to a stable level.<\/p>\n
But if the system works as intended, the DAI price gets stable, in this case, the number of MKR in supply will reduce thereby MKR becomes rare and more valuable, hence MKR holders benefit. For over three years now, Dai has remained stable with only minor fluctuations from its one dollar price tag.<\/p>\n
Moreso, anybody can use or build with Dai without permission since it’s simply a token on Ethereum. As an ERC20 token, Dai serves as a pillar to be incorporated into any decentralized application (dapp) needing a stable payment system.<\/p>\n
In different smart contracts, developers include Dai and modify it for different uses. Example; \u00a0xDAI,<\/strong> for easy and more efficient transfers and payments systems used in superfast and low-cost side chains. rDAI <\/strong>and Chai<\/strong> allow users to control what happens to the interests as it accumulates using a normal DAI to design an interest-generating pool.<\/p>\nUses Of Dai<\/span><\/h2>\nBecause of its proven market stability, no one can overemphasize the uses and benefits of Dai Crypto. However, below are the highlights of the major ones;<\/p>\n
\n- Low-cost Remittance<\/strong><\/li>\n<\/ul>\n
This is perhaps one of the reasons for the growing popularity and adoption of DAI by the crypto industry. You can use this stable coin to pay debts, pay for goods and services that you purchase, or even send money to other countries. The good news is that the processes of all these transactions are very fast, convenient, and cheap.<\/p>\n
Comparing the same process to using the conventional financial systems, you’ll incur more costs, experience unnecessary and annoying delays, and sometimes cancellations. Imagine a cross-border transaction through the Bank of America and Western Union; you’ll be looking at spending at least $45 and $9, respectively.<\/p>\n
This is not so when going through Maker Protocol. The system is on the trustless blockchain and supports peer-to-peer transfers. As such, you can send money to someone in another country within few seconds at a small gas fee.<\/p>\n
\n- Good means of savings<\/strong><\/li>\n<\/ul>\n
By locking the Dai stable coin into a special smart contract, members can earn the Dai Savings Rate (DSR).\u00a0 To this, no additional cost is required, no minimum deposit, no geographical restrictions, and no sanctions on liquidity. \u00a0Part or all of Dai locked can be withdrawn at any time.<\/p>\n
The Dai Savings Rate is not only a paddle to financial freedom with complete user control features, but also a game-changer to the Defi movement. The DSR contract is accessible via Oasis save and other DSR integrated projects, including; Agent wallet and OKEx Market place.<\/p>\n
\n- Brings Transparency to Financial Operations<\/strong><\/li>\n<\/ul>\n
One of the annoying aspects of our traditional systems is that users don’t know exactly what happens with their money. They don’t understand the inner workings of the systems, and no one bothers to let anyone know.<\/p>\n
But this is not so on the MakerDAO protocol. Users of the network get insights on every single thing that happens on the platform, especially concerning both DAI and DSR.<\/p>\n
Moreover, transactions on the blockchain itself are open, as everything stores on the public ledger, which everyone can see. So, with the built-in checks and balances on-chain, users get to understand what’s happening.<\/p>\n
Another important aspect is that audited and verified smart contracts on the Maker protocol are accessible to technical users. So, if you’re know-how is advanced, you can even review these contracts to understand the workings more.<\/p>\n
We all agree that our conventional financial systems cannot allow such a level of access or information to get into the hands of their customers.<\/p>\n
\n- Money Generating<\/strong><\/li>\n<\/ul>\n
Aside from buying Dai from various Exchanges, some people generate Dai daily from the Maker Protocol. The simple process includes locking surplus collateral in Maker Vaults. The Dai token generated is strictly based on the amount of collateral a user locks on the system.<\/p>\n
Many people do this to acquire more ETH with the turnover, as they believe ETH price will increase in the future. Some business owners do this to generate more capital, girding crypto’s volatility but locks their funds in Blockchain.<\/p>\n
\n- Drives its Ecosystem and Decentralized Finance<\/strong><\/li>\n<\/ul>\n
DAI is helping the Maker ecosystem to gain credence and global adoption. As more and more projects recognize stablecoin and use its features, many people will start to use DAI.<\/p>\n
One of the good things about DAI is that developers can rely on it to provide a stable asset for transactions in their respective platforms.\u00a0 By so doing, risk-averse individuals can participate more in the crypto space. As the user base grows, the Maker Protocol will become more stable.<\/p>\n
Given that DAI is one of the foundational holders of decentralized finance as it serves as a way to store value in the movement. It also helps users to generate passive income, measure collateral and transact easily. So, if more people begin to adopt DAI, the Defi movement will also continue to expand.<\/p>\n
\n- \u00a0Financial independence<\/strong><\/li>\n<\/ul>\n
The government in some countries with an increased rate of inflation, has routinely placed restrictions on capitals, including withdrawal limits that affect its citizens. Dai is a good alternative to such people as one Dai is equivalent to a US dollar and can be exchanged peer-to-peer without interference from the Bank or any third party.<\/p>\n
Using the Maker protocol, anybody can create Dai once they deposit collateral in MakerDAO’s Vault, use it to make payments, or earn the Dai Savings Rate. Also, trade the token on popular exchanges or Oasis without the interference of the Central Bank or third party.<\/p>\n
\n- Provides Stability<\/strong><\/li>\n<\/ul>\n
The crypto market is fraught with volatility giving that the prices and values fluctuate without warning. So, it’s a relief to have some stability in an otherwise chaotic market. That’s what DAI has brought into the market.<\/p>\n
The token is pegged slightly to USD and has a strong backing of collateral locked in the Maker vaults. During seasons of high volatility in the market, users can store DAI without leaving the game due to the adverse situation.<\/p>\n
\n- Round the Clock Service<\/strong><\/li>\n<\/ul>\n
This is a distinguishing aspect between traditional financial services and DAI. With the conventional methods, you’ll have to wait for the set schedules of operations before realizing your financial goals of the day.<\/p>\n
Moreover, even if you use other outlets which your banks provide, such as the ATM machine or mobile and desktop app, to transact during the weekends, you’ll still have to wait until the next business day. The delays in these transactions can be frustrating and annoying. But DAI changes all that.<\/p>\n
Users can complete every transaction on DAI without restrictions or schedules. The service is accessible every hour of the day.<\/p>\n
There’s no central authority governing the operations of DAI or controlling the way users can utilize it. As such, a user can generate the token, use it and pay for services or goods from anywhere, at any time according to personal schedule.<\/p>\n