Dai Stablecoin Exaplained

Dai is a decentralized stablecoin pegged to the U.S. dollar's value. It is built on the Ethereum blockchain and is created and managed by a decentralized autonomous organization (DAO) called MakerDAO. The value of DAI is maintained through a system of collateralized debt positions (CDPs) and a dynamic system of collateral auctions. Users can create Dai by depositing cryptocurrency as collateral into a CDP and then borrowing Dai against the value of that collateral. The value of the collateral is…

What is MakerDAO (MKR)?

MakerDAO is a decentralized autonomous organization (DAO) built on the Ethereum blockchain that aims to provide a stable coin called DAI, which is pegged to the value of the U.S. dollar. The core component of MakerDAO is a system of smart contracts that governs the creation and redemption of DAI. Users can "lock up" ether (ETH), the native cryptocurrency of the Ethereum network, as collateral in the system, and in return, they can mint an equivalent value of DAI. The…