We would like to inform you that Dai/USDT trading pair is now (2021/11/01 | 04:00 PM) available on Mazdax Exchange. You can start trading now.
The DAI token has been introduced by the MakerDao ecosystem. There is not always complete trust in existing stable currencies, and this ecosystem tries to restore confidence in the digital currency market by launching a decentralized stable currency. DAI is built on the Ethereum blockchain and is supported by Ethereum Digital Currency. BAT cryptocurrency is currently known as DAI backup alongside Ethereum, and some other cryptocurrencies will be added to the list in near future.
MakerDao Foundation was established by Run Christensen in 2014. In line with financial and credential goals, this foundation launched a new protocol as an OpenSource project. In this project, users could receive loans using encrypted collateral. Following the relative success of this project, DAI officially launched the Maker Protocol in 2017 and provide lending assets to individuals and businesses with the help of this protocol. Eventually, the Maker Foundation outsourced software control to an autonomous, decentralized organization called MakerDAO. Under a smart deal, cryptocurrency holders can collateralize their digital assets with this stable coin and receive some DAI tokens in return. In this case, something like borrowing happens and the user can return DAI tokens after the smart contract period and get back their original balance.
The value of the DAI token is always equal to one US dollar and the system checks the accuracy of this pricing. Of course, DAI does not need dollar support and no organization or individual can manipulate it. In this case, no country has the power to control Dai and this token is virtually unsanctionable. DAI has two defense mechanisms to reduce the risk of changing the price of its backups. One of these defense mechanisms is designing an automatic loan settlement process. If the loan is repaid, the price of Ethereum as the Dai backup decreases and the value of the guarantee amount reaches less than one and a half times the value of the loan received. the system automatically sells all the guarantee Ether and converts it to DAI. However, there is still the possibility of damage in the system. Another defense mechanism that complements the first one is getting more guarantees from the applicants. The system takes 1.5 times the value of the requested amount as a guarantee from the applicant to sell them in the market in case of price changes and non-repayment of loans.
Trading and investing in the cryptocurrencies market demand technical knowledge and awareness. Please buy/sell crypto with caution, accuracy, and awareness. Here in Mazdax, we do our best to list the best and most popular cryptocurrencies, but we are not responsible for the potential losses of users.
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