Swap Tracker
June Katz 23 Aug 2023 ◦ 4 min read

What Is DAI and Where to Buy It?

What Is DAI and Where to Buy It?

What is DAI?

DAI is a stablecoin that operates on the Ethereum blockchain with its value pegged to the US Dollar. DAI cryptocurrency manages to maintain its worth without a centralized trust, which sets it apart from its centralized and regulated competitors – like Tether (USDT) or Paxos (PAX). DAI's decentralized nature and lack of regulating authority mean that no government can influence it or shut it down.

DAI coin was created by Maker – an autonomous organization whose other project, Maker coin (MKR), is also an ERC-20 decentralized asset. DAI price stability is maintained through a lending system on the Ethereum (ETH) network. To create DAI coin, users deposit their ETH into a Collateralized Debt Position – a personal smart vault that stores Ethereum. With the deposited ETH stored in the vault as collateral, a comparable amount of DAI is sent to the Ethereum holder.

Pros:

  • Being a stablecoin, DAI keeps its value during volatile market shifts;
  • DAI is a decentralized token that cannot be limited by regulatory agencies, which makes it an appealing option for users looking to distance their assets from third-party supervision;
  • The DAI lending process offers certain monetary perks for its participants;
  • Like all other ERC-20 tokens, DAI coin can be easily stored on any Ethereum wallet.

Cons:

  • Does not have nearly as many trading pairs as its competitors;
  • The coin is dependent on Ethereum, which is a rather volatile asset;
  • Some experts warn against calling DAI a stablecoin, implying that its stability is an aspiration, butnot a reality.

How does DAI coin remain stable?

DAI cryptocurrency is backed with ETH that is locked in publicly viewable contracts. What's more, the amount of ETH locked in these contracts always exceeds the value of all DAI in circulation. With all contracts openly stored on the blockchain, any user can perform a real-time audit if necessary. Maker gives DAI its stablecoin properties by implementing a series of balancing mechanisms that kick in if DAI's value strays too far from the dollar. When the price of a single DAI coin falls below $1, the system encourages users to increase its price. If one DAI is worth over $1, the same incentives encourage the price to decrease. In both cases, money can be made as a result of the price swings. The further DAI deviates from its $1 equivalent, the better financial incentives there are in forcing it back to its original price.

How to buy DAI?

DAI can be traded via the following exchanges:

  • OKEx
  • Kraken
  • Bittrex
  • Bitfinex

You can also get DAI on the SwapSpace cryptocurrency exchange aggregator, which is a quick and easy way to obtain the required amount of DAI.

How to exchange DAI on SwapSpace?

  1. On the SwapSpace homepage, select DAI in the “You send” section and the cryptocurrency you would like to receive in the “You get” section. Enter the amount of DAI crypto you want to exchange.
  2. Choose the instant exchange service that suits you most.
  3. Specify the recipient address and check if all the data is correct.
  4. Send your DAI coins to the address you will see on the screen.
  5. Wait until the exchange is complete.

How to store DAI

DAI is an ERC-20 coin that can be kept in any ERC-20-compliant wallet. Here are the best DAI wallets: MyEtherWallet, Atomic Wallet, Exodus, Jaxx, and MetaMask. More information about each option is in this article

Related Posts

What Is Shibarium? An In-Depth Look at Its Purpose and Potential

What Is Shibarium? An In-Depth Look at Its Purpose and Potential

07 Feb 2024 ◦ 9 min read
Shibarium Overview Shibarium is a new second-level blockchain network ( L2 ) built in
Retrodrops: How to Find Potential Projects And Increase Chances of Getting Tokens?

Retrodrops: How to Find Potential Projects And Increase Chances of Getting Tokens?

22 Nov 2023 ◦ 10 min read
Retrodrops are the distribution of free tokens to users who participate in various activities at an early stage of the project's development. Why Do Projects Distribute Tokens?
Highs After Lows: Miraculous Crypto Price Recoveries

Highs After Lows: Miraculous Crypto Price Recoveries

23 Aug 2023 ◦ 14 min read
It is no secret that the cryptocurrency market is an up-and-down one, and when choosing certain assets, you always risk. Despite this, the area attracts more and more users. Sometimes coins fall heavily
Worldcoin Token Launch: News, Reactions & Opinions

Worldcoin Token Launch: News, Reactions & Opinions

23 Aug 2023 ◦ 6 min read
On Monday, July 24th, Worldcoin ($ WLD ) developers conducted an airdrop (free distribution) of the eponymous token to users of the World App application. Cryptocurrency exchanges launched token trading under the WLD tick

Where all instant exchangers met for your smoothest experience

Maximize profits, minimize search

Tags

Tokens

Recent Posts

Best Crypto Investing Strategies in a Bull Market
Top 2024 DeFi Trends: Navigating the Future of Decentralized Finance
Ways to Earn Free Crypto in 2024
Common Mistakes in a Crypto Bull Market and How to Avoid Them

BTC  to ETH : Best Rates

btc-icon
btc
0.1