DAI is a dollar stablecoin, 1 DAI = 1 USD ( - a couple of cents).
How new DAI are created- users deposit their cryptocurrency as collateral and new DAI are generated in return. New DAI cannot appear without collateral. They can't be mined.
The main idea of DAI is the ability to take a loan in them and increase your investment capital. In addition, due to the stable exchange rate, DAI is used as a unit of calculation for trading in pairs with other tokens and as an investment tool:
DAI can be issued on credit and borrowed on crypto platforms: dYdX, Compound, Aave, DDEX.
it can be staked and deposited on crypto exchanges.
Creating a DAI
Initially, DAI was secured only with the help of ETH, now the list of collateral assets has expanded and users can pledge other cryptocurrencies: BAT, USDC, WBTC, USDT, etc. The list of cryptocurrencies and their collateral ratio is determined by the members of the community that owns MKR, by voting.
The deposit is refunded through the vault. We return the borrowed DAI, which are then burned by the system, and after paying the interest for using the funds.