The decentralized stablecoin powered by MakerDAO.
**Dai (DAI)** is a stablecoin designed to maintain a value of **1 USD** through a system of crypto-backed collateral and smart contracts on the **Ethereum blockchain**.
Unlike centralized stablecoins, Dai is governed entirely by the community through the **MakerDAO** protocol.
It plays a central role in decentralized finance (DeFi), serving as a reliable store of value, a unit of account, and a medium of exchange.
Below is live market data fetched directly from the CoinGecko API.
Dai (DAI) Live Data
Current Price: $1.00
Market Cap: $4,439,181,367
24h Volume: $64,420,140
24h Change: 0.09%
Rank: 35
Project Overview
Dai was launched by **MakerDAO**, a decentralized autonomous organization (DAO) that manages its issuance and stability. Users lock crypto assets such as ETH, WBTC, or USDC as collateral to mint new Dai tokens.
The system maintains stability through a dynamic **collateralization ratio** and community governance decisions.
Dai has become one of the most widely used stablecoins in the DeFi ecosystem, powering lending platforms, yield farms, and decentralized exchanges.
Key Insights
Dai's decentralized design makes it resistant to censorship and centralized control, unlike USDT or USDC.
The MakerDAO governance token (**MKR**) allows holders to vote on system parameters, collateral types, and stability fees.
Dai plays a critical role in decentralized lending and borrowing platforms across Ethereum and Layer 2 solutions.
Common Questions About Dai
1. What is Dai (DAI)?
Dai is a decentralized stablecoin pegged to the U.S. dollar, created and managed by the MakerDAO protocol.
2. How is Dai different from USDT or USDC?
Dai is backed by crypto collateral on-chain and governed by a DAO, while others are backed by centralized reserves.
3. How is the 1 USD peg maintained?
Smart contracts automatically adjust supply and collateral ratios to keep Dai close to its $1 target.
4. What backs Dai?
Assets such as ETH, WBTC, and stablecoins are locked as collateral in Maker Vaults to generate Dai.
5. What is MKR's role in the system?
MKR token holders govern the Maker Protocol, adjusting fees and collateral rules to ensure Dai's stability.
Market Context
Dai remains one of the most trusted decentralized stablecoins in the crypto industry. Its transparency, open governance, and on-chain collateral make it a cornerstone of DeFi.
As regulatory scrutiny on centralized stablecoins increases, Dai's decentralized model positions it as a long-term alternative for Web3 finance.