Dai is a stablecoin from MakerDAO which utilises the financial cryptocurrency concept of the Collateralized Debt Position (CDP) as a solution for the high volatility of cryptocurrencies. The Dai stablecoin is pegged to $1 and is built on the Ethereum network for transparency and decentralization.
To make sure the Dai maintains it's $1 peg, MakerDao has two lines of defence. The first lies in the blockchain of Ethereum and the beauty of the smart contract. If the price of DAI begins to move, the blockchain generates smart contract which automatically pushes the value to stabilize.
It readjusts to the pegged US dollar value and holds itself there owing to the contract in place. If there is a severe increase or decrease, Maker’s second defence kicks in; and the nodes owning the Maker tokens form Maker smart contracts which adjust the value of the DAI token; pinning the value back to the peg.
DAI can be converted from major digital currencies on our cryptocurrency conversion service. This means you can buy with ZAR, EUR, NGN, GBP, AUD and many more. Supporting 25 countries, can be bought using the most convenient local payment method; including bank transfers, PayPal, TransferWise, supported fiat deposits, direct deposits and M-Pesa. Credit card payments are coming soon.
Disclaimer: The content on this page should not be taken as financial advice. Never invest what you can’t afford to lose as the cryptocurrency market is volatile. Always research as much as possible before buying any coin.