What is the collateral behind Dai, the digital currency?

3 answers

• May 07, 2022 · 3 years ago
  Dai, the digital currency, is backed by a variety of collateral assets. These assets include cryptocurrencies such as Ether (ETH), as well as other types of assets like stablecoins and tokenized real-world assets. The collateral is held in smart contracts on the Ethereum blockchain, ensuring transparency and security. This multi-collateral approach helps to stabilize the value of Dai and maintain its peg to the US dollar. By using a diverse range of collateral, Dai is able to mitigate risks and provide stability to its users.
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• May 07, 2022 · 3 years ago
  The collateral behind Dai is primarily Ether (ETH), the native cryptocurrency of the Ethereum blockchain. However, the MakerDAO system, which governs Dai, has plans to introduce other types of collateral in the future. This will further diversify the collateral pool and enhance the stability of Dai. The use of collateral ensures that Dai is fully backed by assets, providing users with confidence in its value and stability.
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• May 07, 2022 · 3 years ago
  Dai, the digital currency, is backed by a combination of collateral assets, including cryptocurrencies and other types of assets. The collateral is held in smart contracts on the Ethereum blockchain, which ensures transparency and security. This collateralization mechanism allows Dai to maintain its value and stability, even in volatile market conditions. The use of collateral also provides a decentralized and trustless system, as the value of Dai is not dependent on any central authority or single asset.
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