About Dai (DAI)
Dai is a decentralized network whose native cryptocurrency, DAI, launched on the Ethereum blockchain network at the end of 2017. DAI is a stablecoin that maintains its peg to the US dollar through a unique system.
An intricate network of smart contracts and ecosystem participants maintains the DAI-USD peg, and DAI is maintained and regulated by a governance system implemented by MakerDAO and its MKR governance token.
There are two versions of Dai: Single-Collateral Dai (SAI) and Multi-Collateral Dai (MCD). SAI was initially backed only by Ethereum, had a fixed stability fee, and used automatic liquidation. MCD can be backed by multiple types of collateral, has a more flexible stability fee, and uses a keeper system for liquidation.
SAI has been replaced by MCD and is no longer being developed or supported. SAI holders were able to migrate to MCD. The current price of DAI is updated and available in real time on Binance.
The depegging of DAI in February 2023 led to a $3 billion loss for the protocol, prompting discussions of a backup system. To prevent future depegging of its stablecoin DAI, MakerDAO is considering using an emergency switch. MakerDAO's emergency switch is designed to give the protocol more flexibility in responding to market conditions and maintaining the stability of its stablecoin.