Discover Dai (DAI), it’s easy!

What it is and how it was created 

The creation of DAI can be seen as the debut of the entire DeFi sector. DAI is the first decentralised stablecoin, designed to maintain a 1:1 ratio with the dollar, supposedly backed by cryptocurrency reserves. This means that DAI can be generated by collateralising other cryptocurrencies, even though they are inherently volatile. The Maker protocol is responsible for the stability of the reserves pegged to DAI, the issuance and burning of the stablecoin, interest rates, penalties, the voting system, and the Foundation’s decision-making process.

MakerDAO, the decentralised autonomous organisation that manages DAI, was founded in 2014 by Danish entrepreneur Rune Christensen. The protocol’s effectiveness has been evident since its launch in 2017: Ethereum lost 80% of its value in that first year, but DAI remained stable on the market with a 1:1 ratio to the dollar.

What It Is and How It Began

The creation of DAI marks the beginning of the entire DeFi sector. DAI is the first decentralised stablecoin, with its value pegged 1:1 to the dollar through cryptocurrency reserves. This means that DAI can be generated by using other cryptocurrencies as collateral, even though they are inherently volatile. The Maker protocol is responsible for maintaining the stability of the reserves linked to DAI, issuing and burning the stablecoin, setting interest rates and penalties, managing the voting system, and making decisions for the Foundation.

MakerDAO, the decentralised autonomous organisation overseeing DAI, was founded in 2014 by Danish entrepreneur Rune Christensen. The protocol’s effectiveness was evident from its launch in 2017: during that first year, while Ethereum lost 80% of its value, DAI remained stable on the market with its 1:1 ratio to the dollar.

Do you want to know more about Dai (DAI)? 

Visit the official website (https://makerdao.com/en/), check out the documentation (https://docs.makerdao.com/smart-contract-modules/dai-module/dai-detailed-documentation), and read the whitepaper (https://makerdao.com/whitepaper/DaiDec17WP.pdf). Contact: forum.makerdao.com

Dai in the context of MiCA

The European Regulation No. 2023/1114 entry into force of 31 May 2023, concerning the Markets in Crypto-Assets (MiCA), marked a significant milestone for stablecoins and the digital asset market throughout the European Economic Area (EEA). A first block of the regulation came into effect on 30 June 2024, significantly impacting stablecoins. MiCA defines stablecoins in two main categories: ART (Asset-Referenced Tokens) and EMT (E-money Tokens), for which specific requirements are provided in articles 16 and 48 of the regulation. Furthermore, on 25 June 2024, the Italian government approved a Legislative Decree to adapt the national regulatory framework to the MiCA Regulation, ensuring coordination with existing sector provisions in Italy, particularly with the TUB and TUF.

Disclaimer

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