Also, the Decentralized Autonomous Organization is keeping the stablecoin overcollateralized to ensure the pegging remains stable.
However, DAI has grown in popularity and use by keeping a steady price close to 1 USD. Most decentralized coins did not perform well. The DAI stablecoin used to be collateralized only with Ethereum but nowadays is multi collateralized. The main difference between DAI and the other popular stablecoins is that DAI is fully decentralized and is integrated by hundreds of dapps and DeFi projects. DAI (DAI)ĭAI is an Ethereum based stablecoin launched and governed through the Maker Platform and MakerDAO. That’s why it is often stated that DeFi works like traditional banking to some extent.ĭeFi projects usually denominate dapps and infrastructures such as asset management tools, decentralized exchanges (DEX), DeFi infrastructure & Dev Tooling, and many others.Īlthough they are risky to invest in and use, the more time passes, the more they optimize and come out with better tokenomics and more secure infrastructures. Specifically, this sector brings to currency services like lending, borrowing, earning interest, and trading assets through the power of smart contracts. It does that by disassembling the various financial services and decentralizing them. DeFi, short for Decentralized Finance, refers to a crypto sector that works to bring most of the traditional finance’s capabilities inside the cryptocurrency space.