What is Dai?
DAI is a stablecoin that operates on the Ethereum blockchain and is managed by the Maker Protocol and MakerDAO, a decentralized autonomous organization. The price of DAI is pegged to the U.S. dollar and is collateralized by a mixture of other cryptocurrencies held in smart-contract vaults. Additionally, DAI holders can earn interest through the DAI Savings Rate, which is determined by MKR token holders. These token holders act as guarantors, and their MKR tokens can be liquidated in the event of a system failure. MakerDAO's objective is to provide a secure, fast, and cost-effective permissionless lending and income generation platform that offers a decentralized stable currency alternative, allowing global citizens living in areas of economic instability to achieve financial freedom.
