Dai coin is a stable native token for the MakerDao Defi platform pegged in USD at ratio of 1:1 and created on Ethereum blockchain network platform whose transaction takes place from one peer to another without involvement by the government thus is being considered to be a decentralized asset. Dai coin is an interest bearing token. Being an interest bearing token, Dai was created by the MakerDao to disrupt the lending institutions. Unlike in traditional lending institution where collateral is a big challenge to many borrowers, for Dai, that is not the case. Instead, Dai which is a native coin of MakerDao enables borrowers to be able to collateralize their Ether balance at the collateralized Debt position( a MakerDao contract address for holding the ether balance of the borrowers until they settle their outstanding Dai debt) . This will enable the borrowers to be able to generate certain amount of Dai based on their Ether collateral. The more ether collateral they have the more Dai they will be able to create. The borrower can either decide to withdraw the Dai generated or they can lock them so that they be entitled to earn more interest with them.
Dai token transaction
Dai coin transaction takes place on the Ethereum blockchain explorer based on block height and timestamp. Here is a view of Dai coin transaction;
To view how the transaction takes place at Ethereum blockchain explorer, simply follow the link below; https://etherscan.io/token/0x89d24a6b4ccb1b6faa2625fe562bdd9a23260359
Date Launched
Dai coin project was launched in 2017 with the main objective of distrupting the money lending platform by allowing users to be able to collateralize their ethereum to create Dai thus after they have repaid back the amount of Dai created plus interest charge, that is when they can unlock their collateralized ethereum.
Founder Of Dai token
Dai coin was created by the MakerDao Defi platform with the main objective of distrupting the financial institution. The MakerDao wanted to decentralized lending and borrowing sector by simplifying the way borrowers can collateralize their asset to borrow a loan.
Process of creating Dai token
Unlike cryptocurrencies like bitcoin and Ethereum which are released through the mining process using power supply and internet, for Dai coin, that is not the case . Instead, Dai coin was created by the MakerDao Defi to enable borrowers to release it simply by collateralizing their Ether. If a user want to generate certain amount of Dai, he or she should collateralize their Ether via the Ethereum network by simply entering the collateralized Debt position. This collateralized Debt Position will lock the amount of Ether used thus allowing the borrower to create a certain amount of Dai based on their collateral. The amount of Dai created will automatically be credited to the borrowers account. The collateral must exceed the Dai generated by a ration of 150%. The waver fees charged to the borrower is 12.5% per anum. The borrower can decide to withdraw their Dai generated or can lend it again to MakerDao by simply locking it if they want to earn interest from them. The more your collateral the more Dai you can generate. At the same time, the more Dai you lock the more interest you will earn. The borrowers will be able to withdraw their Outstanding Ether on the Collateralized Debt Position upon fully completing paying their outstanding Dai debt plus interest charged. Here is how Dai generation process looks like;
If you want to start generating Dai as a borrower and lender, you can join them from below;
Maximum circulation of Dai token
Unlike other cryptocurrencies which have maximum circulation, for Dai, no maximum circulation amount is being indicated from their white paper. Dai is being supplied by the borrowers when they collateralized their Ether. Currently, there are more than 95 million Dai circulating. All these amount are being generated by borrowers through collateralizing their Ether on the CDP( Collateralized Debt Position).
Dai token Price
Since Dai is a stable coin being pegged to USD at the ration of 1:1, it is therefore worth @ $1 and its price will stabilize over time at around $1. Dai coin is being abbreviated as DAI
Converting my Dai coin to other cryptocurrencies
To convert your Dai coin to other cryptocurrencies such as bitcoin and Ethereum or other stable coins such as USDT, you need to have a cryptocurrency exchange account. If you don't own one then you can follow the link to open a cryptocurrency exchange account for easy conversion of your Dai coin to Bitcoin, USDT or Ethereum. Here is a list of exchanges where you can easily exchange your Dai coin to your favorite cryptocurrencies;
Storing my Dai token
To store your Dai coin, you need a Dai coin wallet that is compatible to ERC20 tokens . You can either store online or offline. To store your Dai coin online, you can either use myetherwallet or metamask or . To secure your Dai coin from being stolen by hackers, you can use ledger nano wallet. If you want to earn interest on your Dai holdings, then you need to collateralized your Ethereum on the MakerDao Defi platform.
Transferring my Dai token to other Users
If you want to transfer your Dai coin to another user, the two of you must have trust in each other. The trust should be the Dai coin address provided for by the receiver while the sender must have the Dai coin balance in their account to send to the receiver. For the sender, a blank space to insert receiver address and another blank space to insert the amount to send to the receiver is indicated. Here is how it looks like;
Knowing more About Dai coin
If you feel that you need to learn more about Dai coin , then you can follow them on their site. Here is the link redirecting you to Dai coin platform website
Now that you know, I think that it is time for you to start earning some Dai interest simply by holding your created Dai at the MakerDao platform through collateralizing your Ethereum . The more Dai you lock,the more interest you earn. If you feel that I should also own some Dai coin for helping you to know about it then here is my Dai coin address that is compatible to ERC20;
0x346570c491b76c7cd51699bdd272762111b743a9
Summary
MakerDao platform is distrupting the traditional lending platform by allowing users to borrow instant Dai loan when they collateralize their Ether on the collateralized Debt Position. With the Dai created, borrowers can decide to lend their Dai to the MakerDao so that they be entitled to earn interest. At the same time, they can decide to withdraw their generated Dai for other purpose. The borrowers will be in a position of withdrawing their collateral Ether from the collateralized Debt position upon completion of their outstanding debt arrears plus interest charge. MakerDao is doing a great job for easing the way borrowers can collateralize their asset compared to traditional lending institution which is a lengthly procedure. The future of lending is bright
