DAI (DAI) Stablecoin Review
- Financial Institutions
DAI is a digital asset-backed, ERC-20 stablecoin pegged to the US Dollar. Issued by a smart contract platform on the Ethereum blockchain, DAI is governed and maintained by the MakerDAO Foundation.
DAI Stablecoin - 2020 Comprehensive Review
DAI Stablecoin Overview
|Exchanges||Bitfinex, Kucoin, KyberSwap, Radar Relay, Bittrex Global, Coinbase Pro, Kraken, Gate.io, IDEX, Uniswap, HitBTC, Oasis Trade|
|Hardware Wallets||Ledger, Trezor|
|Audit Frequency||Public Smart Contract|
DAI (DAI) Exchanges
Recommended DAI (DAI) Wallets
|Ledger Nano M||7/10||Mobile Application||$96.00|
DAI Borrow Rates
|Platform||APR Rate||Collateral LTV||Loan Amounts|
|MakerDao||8%||66%||$1 - $1,000,000|
|Compound||0%||50% - 75%||$1 - $100,000|
|Celsius Network||3.46% - 6.26%||25% - 50%||$1,500 - $1,000,000|
|Nuo Network||2.88%||50% - 70%||$25 - $600,000|
|demo||10%||10%||$10 - $10|
DAI Interest Rates
|Platform||APY Rate||Lockup Terms||Deposit Amounts|
|Compound||1134200.00%||Flexible||$1 - $100,000|
|Nuo Network||0.00%||Flexible||$1 - $100,000|
|Celsius Network||16.16%||Flexible||$1 - $100,000|
|Nexo||8%||Flexible||$1 - $2,000,000|
|Crypto.com||6% - 10%||3 Months||$25 - $1,000,000|
|MakerDao||7.5%||Flexible||$1 - $1,000,000|
DAI Stablecoin Alternatives
Pros and Cons
- ERC20 - DAI is easily transferable, transparent, and secure given its issuance on Ethereum blockchain. As an ERC20 DAI can be stored in personal hardware wallets where users maintain ownership over the private keys.
- Censorship Resistant - DAI is governed by smart contracts and therefore is the only stablecoin that cannot be seized or censored by governments or regulatory agencies.
- Transparency & Auditability - DAI is collateralized by Ethereum which is immutably verifiable on the Ethereum blockchain.
- Privacy - Transacting with DAI does not require any account creation or KYC processes. It is by far the most private stablecoin available.
- Liquidity - DAI is only listed on a few major exchanges and does not have nearly as many trading pairs compared to centralized stablecoins such as USDT and USDC.
- Dependent On Ethereum Collateral - DAI is collateralized by Ethereum which is a far more volatile asset than the US Dollar. Ethereum is orders of magnitude more likely to flash crash than fiat, introducing a much greater risk for DAI holders vs centralized stablecoins that are collateralized by fiat.
- Peg Stability - DAI is exposed to greater USD price fluctuations compared to centralized stablecoins due to being collateralized by a volatile asset in Ethereum.
Frequently Asked Questions
What is Dai?
DAI is a censorship resistant decentralized stablecoin pegged to the US Dollar and is collateralized by Ethereum through smart contracts created by the MakerDAO foundation.
Is DAI safe?
It depends how ‘safe’ is being defined. DAI is safer than centralized stablecoins in that it cannot be seized or confiscated by any entity. On the other hand, the value DAI is not as safe compared to centralized stablecoins due to the volatility of the underlying collateral - Ethereum.
Is DAI an ERC20?
Yes. DAI is exclusively minted and issued on the Ethereum blockchain. The fully transparent contract address 0x89d24a6b4ccb1b6faa2625fe562bdd9a23260359 here.
Where can I buy DAI?
DAI can either be minted on the MakerDAO CDP (Collateralized Debt Position) Portal using Ethereum as collateral or can be purchased directly with cryptocurrency.
Can I earn interest on DAI?
Yes. DAI is a major part of the blockchain finance ecosystem and there are several platforms offering users the ability to earn interest on DAI.
DAI is the first decentralized stablecoin to be issued on the Ethereum blockchain and since its inception in 2013 has seen steady progress in both overall market cap growth and usage.
Blockfer expects DAI to maintain its growth as the MakerDAO foundation continues to focus on additional liquidity options and financial use cases for DAI.
DAI is incredibly innovative and the first of its kind in many ways. We are very excited to see how DAI continues to progress as an essential part of the blockchain finance ecosystem. Blockfer recommends DAI for privacy focused users, investors looking to earn interest, crypto loans, and traders looking to hedge against volatility.
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DAI Official Website
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The stablecoins found in this category have been researched extensively by our team as part of the review process. Factors we analyze in our stablecoin reviews and comparisons include: trading volume, listings, purchase and redemption process, issuer trust, collateral type, borrow rates, interest rates, and wallet compatibility.
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