$1.00 / $0.9921
What is Dai (DAI)
DAI is a US dollar pegged stable coin just like Tether (USDT) and USD Coin (USDC). DAI’s price volatility is prevented thanks to Maker (MKR). Maker is a decentralized autonomous organization (DAO) on the Ethereum network which is powered by MKR token, an Ethereum based utility and governance token. Maker DAO’s aim is to stabilize the DAI price by annihilating the price volatility. However, the price of Maker is volatile in contrast to the price of DAI.
Maker’s price changes over time, as it is said a utility token and the price increases with the usage of the DAI. Maker DAO produces DAI coins by using Collateralized Debt Position (CDP) smart contracts. This means it is baked with Ethereum and ETH tokens cover all the assets. CDP contracts contain ETH, if any bad thing happens, MKR coin cover the losses. Over 2 million ETH was locked in the Maker CDP contract.