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Dai StableCoin (DAI)

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DAI is one of the two stablecoins that support the MakerDAO stablecoin ecosystem launched by MakerDAO in 2016. DAI’s purpose in the ecosystem is distinct, being the actual stablecoin, as opposed to its governance token counterpart that is MKR.

Stablecoins are being created with increasing frequency and it forms one of the major trends of 2019. However, unlike most other stablecoins, the DAI token differs from others as it does not back DAI tokens with dollar reserves. Rather, it supports the value of DAI tokens through Collateralized Debt Positions (CDPs). CDPs are smart contracts that provide DAI tokens which are backed by collateral (Ether), which it holds until the DAI is returned. This is an integral function in the MakerDAO ecosystem.

The technique used to keep DAI’s value stable at $1 is quite clever. In short, the DAI token is always collateralized and if its value sways from $1, the network is incentivized to push the value back to $1. 

As the DAI token is simply a stablecoin, there is not much in the way of development for the specifically the token, though the team has released many details on the general development of the ecosystem. 

Several changes have been made to the ecosystem in 2019, including updates on the Maker governance system that allowed multiple polls to be conducted simultaneously, security audits, a bug bounty program in collaboration with HackerOne, and a lot of progress towards multi-collateral DAI. Seven new collateral types have been put up for a first round of voting: Augur (REP), Basic Attention Token (BAT), DigixDAO (DGD), Ether (ETH), Golem (GNT), OmiseGo (OMG) and 0x (ZRX)

The rest of 2019, and going forward into 2020, will see a vote to finalize all the changes that would allow multi-collateral DAI, voting on oracle providers, a rebranding and a presentation of general risk proposal model to the community for review, and much more.

Impermanent Loss: one of the Liquidity Provider's risks

29 Nov 2020 4 minute read 3 comments alturn

With the explosion of DeFi, one platform that has aroused particular interest is Uniswap, which is a decentralized protocol executed on the Ethereum network in 2018. In order to provide a completely decentralized service (so called DEX, Decentralized...

Unexpected Fallout From Crypto’s Pullback

29 Nov 2020 1 minute read 0 comments Cje95

When the Bitcoin pullback began and continued to occur I began to analyze it as a time to renter some coins I had sold out of. As the market has been still dealt with sell-side pressure I recently have been caught off guard by a issue with this. Stab...

DAI for Me - Consolidating Profits during a Downturn

27 Nov 2020 2 minute read 2 comments rah

I made some mistakes and especially in August. Let me try to explain… August saw a price surge across the board, but particularly in TEZOs. At one point on 31st August my crypto wallet was massively expanded and I was feeling quite satisfied. Then 1s...

Another Day... Another Hack: Pickle Finance got robbed

25 Nov 2020 1 minute read 25 comments PVMihalache

Another day... another hack! Looks like a DeFi pool is happening every week, while other scams are lurking in the shadows. Pickle Finance is the newest name of projects which were hacked recently, joining Kucoin, Harvest Finance, Akropolis, Origin U...

Zero to One Billion Dai: Five Years of Growth for MakerDAO

25 Nov 2020 1 minute read 2 comments MakerDAO

After more than five years since the concept for the Dai stablecoin was announced, and nearly three years since the first version of Dai officially launched, the MakerDAO project has today reached another major milestone: 1 billion Dai have been gene...

Harvest Finance: The Easiest On-ramp to DeFi

25 Nov 2020 2 minute read 0 comments Cje95

My experience with DeFi before I used Harvest left a lot to be desired but since I was using Compound Finance though the Coinbase Wallet App.   If anyone was wondering the Coinbase Wallet app is awful. While simple and easy to use somehow the “gas” f...

How to Convert "Dai" To "xDai": TokenBridge & Metamask Guide

24 Nov 2020 1 minute read 0 comments ☑️Arͬcͨaͣ🅽🅶eͤl̜̝̖̼͔̞̃ͮ͑̐̉͌🅾➏➏➏

xDai is a stablechain with its own mainnet that operates as a parallel blockchain to that of Ethereum. It was developed through the POA Network, which allows you to make transactions with a low commission on gas (1 Gwei!) and to create a block in jus...

Banking on tomorrow. MultiSig wallets and business

23 Nov 2020 1 minute read 1 comment bobby d!gital

Imagine a not so far future where banks are a thing of the past like old fashioned diners from the 1950's.  MultiSig wallets will have a large role in tomorrow's business and they are here today. Quite possibly crypto could replace banks as we know...

How to use Stablecoin to boost your profits?

19 Nov 2020 2 minute read 0 comments Galaxie Crypto

It is well known that Stablecoin are very useful simply because they are stable which gives them different utility. You may not have realized it yet, but you can use them every day to secure and maximize your profits by spanking trading. This trick i...

Origin Dollar(OUSD) dropped to $0.14 after hack

19 Nov 2020 3 minute read 16 comments PVMihalache

The Origin block-chain e-commerce platform is backed by other stable-coins, not by fiat. Origin Dollar was promoted as the 1st first stable-coin that earns a yield while holding it in the personal wallet and the OUSD balance compounds multiple times...