Dai is the name of the main stablecoin of the Maker crypto project, an Ethereum-based decentralized finance (DeFi) solution with several components, including Dai.
Dai crypto — part of the Maker ecosystem
The Maker crypto project is based around a decentralized application (DApp) on the Ethereum blockchain called the Maker Protocol. MakerDAO is the decentralized autonomous organization (DAO) that governs the Maker Protocol. The DAO is composed of stakers of Maker’s governance token, MKR. Dai and MKR are both ERC-20 tokens and play roles in the Maker ecosystem.
The Maker Protocol lets participants borrow Dai by posting collateral into Maker Vaults (specific Ethereum smart contracts) and receiving Dai in return while the collateral sits in the smart contracts. Dai aims to maintain a peg to the U.S. dollar (USD) through various checks and balances present in the Maker system, such as liquidation levels.
Those putting up collateral in exchange for borrowing Dai must overcollateralize, meaning they must provide more value via the collateral asset than they receive back in Dai to account for crypto market price swings. There are several Ethereum-based tokens, as well as Ether (ETH), that can be used as collateral, depending on what MakerDAO votes to be allowable assets. The Maker ecosystem also includes several other components, including the Maker Foundation and the Dai Foundation.
Dai cryptocurrency price
Given that it is a stablecoin, the Dai price today should be similar to its price on other days. Dai’s price in USD should remain near $1 per 1 Dai if its system operates as intended. Price fluctuations have occurred for Dai, although they are typically minor, as seen in the Dai price chart above. A Dai to USD live price is available at the top of the page, in addition to other data.