DAI: “…anyone, anywhere has the freedom to choose a money they can place their confidence in…”
From the beginning of June, ChangeHero platform will support Crypto-to-DAI and Fiat-to-DAI transactions. It is great news for the ChangeHero community and we believe — for the Dai community as well. Now DAI — the first stablecoin based on Ethereum blockchain can be bought with a credit card and exchanged with 130+ cryptocurrencies on the ChangeHero platform within 15 minutes.
The ChangeHero team is really excited about the DAI integration, so we set a 0% fee on the DAI exchange until the 5th of July! We’ve made a big bet on DAI as one of the most popular stablecoins and expect a large inflow of users from DAI community and crypto enthusiasts on our platform in the near future.
What role does DAI play in the crypto arena? How does it work and how DAI holders could benefit from it? Let’s take an in-depth look below!
The cryptocurrency market has significantly developed during the last years. However, there are a lot of factors that obstruct cryptocurrency pervasion to everyday life, such as sharp price rises and drops during the month, day and even by the hour. For example, the value of BTC often experiences large fluctuations, rising or falling by as much as 25% in a single day and occasionally rising over 300% in a month, what makes Bitcoin and other popular coins and tokens inconvenient payment solutions.
However, crypto enthusiasts have found out how to make a crypto price stable.
A stablecoin is a cryptocurrency which is pegged to an asset with a stable value, such fiat money, specifically USD, and other assets used as collateral, (cryptocurrencies, metals, oil, etc.) The general idea of a stablecoin is to produce a crypto asset whose value isn’t prone to extreme volatility. With Stablecoins everyone could have a stable store of value during volatile market periods, use a stable cryptocurrency for fast and immutable payments, send large amounts of money with lesser fees. One of the most popular stablecoins is Dai, developed by MakerDAO.
What is MakerDAO?
MakerDAO is a decentralized organization dedicated to bringing stability and transparency to the crypto economy. Maker is unlocking the power of the blockchain for everyone by creating an inclusive platform for economic empowerment — allowing equal access to the global financial marketplace.
Maker issues Dai, the world’s first decentralized stablecoin on the Ethereum blockchain. Dai eliminates volatility through an autonomous system of smart contracts, specifically designed to respond to market dynamics.
Launched in 2017, Dai has successfully maintained a soft peg to the US Dollar. With a presence on numerous cryptocurrency exchanges, multiple partnerships with global supply chain companies, and agreements with organizations serving non-government agencies, Maker is unlocking the power of the blockchain to deliver on the promise of economic empowerment today.
So, what is about Dai?
The Dai stablecoin is a collateral-backed cryptocurrency whose value is stable relative to the US Dollar through a series of complementary financial incentives. Dai aims to realize the full potential of blockchain technology, and unlike other Stablecoins, Dai is completely decentralized.
The currency lives entirely on the blockchain; its stability does not depend on any locality, and its solvency does not depend on any trusted counterparties. All Dai is supported by a surplus of collateral, which has been escrowed into audited and publicly viewable Ethereum smart contracts.
Once generated, Dai can be used in the same manner as any other cryptocurrency: it can be freely sent to others, used as payments for goods and services, or held as long term savings without any fear of losing money because of the price drop down.
How does Dai work?
Every Dai is backed by some kind of valuable asset.
This is achieved via an open smart contract platform that allows anyone in the world to lock up their assets as collateral and issue Dai against them.
To retrieve their collateral, holders simply return the Dai they were issued plus a fee based on how long it was outstanding. No one can alter these core mechanics of Dai, making it a safe and predictable form of money.
How could DAI holders benefit from it?
As DAI stablecoin aggregates the advantages of fiat currency and cryptocurrency, there are a lot of situations, where DAI is the best solution. For example, you can use DAI to:
- save your funds in crypto, without the risk of losses, as DAI price is totally stable and equal to 1 UDS;
- keep your funds in crypto, getting all its advantages and at the same time be sure, that the amount is always the same as the initial, related to UDS;
- fix the profit from your crypto investment in USD, without withdrawing your funds from crypto;
- use DAI as a payment tool;
- trade DAI like other ERC-20 tokens;
- send DAI and receive DAI from anyone by having just by having an Ethereum wallet, etc…
There are a lot more, depending on the individual trader’s needs. Find your own way to use DAI and write it in a comment to this article!
How to get Dai?
Users can obtain Dai on traditional exchanges and instant exchanges, like ChangeHero, where you can buy DAI with the credit card and exchange it with 130+ other crypto at the best rate on the market, anonymous and within 15 minutes.
DAI — is the best way to keep your crypto funds stable. As DAI is a first fully decentralized stablecoin based on Ethereum blockchain, it is easy to trade and store DAI at any ETH wallet, like the other ERC-20 token. DAI Price Stability Mechanism excludes considerable DAI rate fluctuations and keeps the DAI price always equal to 1 USD.