Young Platform

Dai (DAI) lands on Young Platform!

Anna Perozzi

July 8, 2020

2 min

What is Dai and how does it work? Maker protocol’s stablecoin is now available on Young Platform! This decentralised stablecoin’s strength lies in its stability

Young Platform’s exchange is expanding and welcoming stablecoins, the cryptocurrencies that aim to defeat market volatility. Now it is the turn of Dai, Maker’s stablecoin that reflects the price of the US dollar.

What is MakerDAO?

The Dai stablecoin was developed and launched in 2017 by MakerDAO, one of DeFi’s longest running and most popular projects on Ethereum. In line with the DeFi philosophy, the Maker project is managed in a decentralised manner via a decentralised autonomous organisation (DAO), and is therefore governed by its community. MakerDAO has developed its own token, Maker (MKR), and DAI, its stablecoin pegged to the dollar price.

What is DAI?

DAI is one of the first decentralised stablecoins in the crypto landscape. It replicates the value of the dollar in a 1:1 ratio. DAI maintains its peg to the dollar through a pool of cryptocurrencies, mainly ETH, USDC and WBTC. Unlike centralised stablecoins such as USDC, it does not use fiat currencies as collateral. DAI is designed to provide rapid access to decentralised financial services, such as lending.

Why did we choose DAI?

DAI is a fully decentralised stablecoin, which implies transparent project management. Decisions regarding the stablecoin are in fact taken collectively by the entire community through on-chain voting systems. DAI also ranks among the top stablecoins in terms of market cap. Thanks to its relative stability and retention of the dollar peg it has over time become a popular stablecoin, chosen by many as an alternative to the volatile market.