DAI

DAI is a stablecoin cryptocurrency native to the Ethereum blockchain. It is an ERC-20 token that aims to maintain a value of approximately 1 US dollar. DAI is decentralized and is governed by the MakerDAO decentralized autonomous organization (DAO).

The value stability of DAI is achieved through a system of collateralization and algorithmic mechanisms. Users can generate DAI by locking up collateral assets, such as Ether (ETH), in a smart contract called a Collateralized Debt Position (CDP). The amount of DAI generated is determined by the value of the collateral assets locked up and a collateralization ratio set by the MakerDAO system.

Users can also obtain DAI by purchasing it from cryptocurrency exchanges or other users. DAI can be used for various purposes such as trading, remittances, lending, and as a stable store of value in volatile cryptocurrency markets.

Overall, DAI provides a decentralized and stable alternative to traditional fiat-backed stablecoins, offering users a reliable means of transacting and storing value within the Ethereum ecosystem.