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What is Dai?
Dai is a crypto-collateralized stablecoin designed to maintain a value closely pegged to the U.S. dollar. It was launched in 2017 by its founder, Rune Christensen, as part of the Maker Protocol. The entire system is governed by MakerDAO, a decentralized autonomous organization, rather than a single entity. As an ERC-20 token on the Ethereum blockchain, its operations rely on smart contracts to manage collateralization and stability. Dai's primary function is to serve as a stable asset within the decentralized finance ecosystem, offering a store of value and a medium of exchange that avoids the volatility common to other cryptocurrencies.
How does Dai work?
Dai maintains its stability through a system of over-collateralization managed by smart contracts on the Ethereum blockchain. Users generate Dai by depositing accepted crypto assets into a smart contract known as a Maker Vault. This process ensures that all circulating Dai is backed by a surplus of collateral, providing a buffer against price volatility.
The network's integrity is upheld by several key participants, including Vault owners, who create and manage their collateralized debt positions. Another group, known as Keepers, are independent actors who monitor Vaults and trigger liquidations if collateral value falls below a specific threshold. Governance is handled by MKR token holders, who vote on critical system parameters to maintain stability.
As an ERC-20 token, all Dai transactions are processed and recorded on the Ethereum network. This means transfers and interactions are validated by Ethereum's network of nodes according to its consensus rules. The settlement of Dai transactions inherits the security and finality characteristics of the underlying Ethereum blockchain.
Dai use cases
Dai is designed for a variety of functions within the digital economy, primarily centered around its stability. Its role extends from a reliable medium of exchange to a core component in decentralized finance applications.
- Stable settlement asset: It provides a stable unit of account for settling transactions and payments on the blockchain without exposure to price volatility.
- DeFi collateral: Users can lock Dai as collateral in various decentralized finance protocols to borrow other digital assets or earn yield.
- Payments: Dai can be used for global peer-to-peer payments and remittances with lower friction than traditional financial systems.
- Savings: Through the Dai Savings Rate, holders can deposit their Dai into a smart contract to earn a variable savings rate.
Dai tokenomics
The tokenomics of Dai are centered on an elastic supply model designed to maintain its peg to the U.S. dollar. Unlike cryptocurrencies with a fixed maximum supply, Dai has no hard cap; its total supply adjusts based on demand. New Dai is minted when users deposit collateral into Maker Vaults to open a loan, and it is burned when those loans are repaid. This dynamic mechanism allows the supply to expand or contract in response to market conditions. The current circulating supply is 5365382702.66487 DAI. The entire system is governed by MakerDAO, which uses the MKR token for voting on risk parameters that influence Dai's creation and stability.
Dai price history & milestones
Dai was launched in 2017 with the objective of maintaining a stable value pegged to one U.S. dollar. While it is designed for stability, its market price has experienced deviations due to market dynamics and liquidity events. The token's all-time high price was recorded at $3.67 on 2021-11-16, a significant variance from its target value. Conversely, its all-time low occurred on 2023-03-11, when the price fell to $0.897. These historical price points illustrate moments of significant market stress and volatility for the asset. Based on its market capitalization, Dai currently holds the rank of 17 among all digital assets.
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Frequently asked questions
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What is the current price of Dai?
As of 20:23 2026-07-11, Dai (DAI) is trading at $0,9998. Prices update every 5 minutes on this page. -
Is Dai a good cryptocurrency to buy on Switchere?
Switchere does not provide investment advice. You can buy Dai on Switchere; whether it's right for you depends on your own research and risk tolerance. -
Who created Dai?
Dai was created by Rune Christensen and is governed by MakerDAO, a decentralized autonomous organization. Unlike projects managed by a traditional company, MakerDAO allows the protocol to be managed by a global community of MKR token holders. These holders vote on key decisions to ensure the stability and security of the Dai stablecoin system. -
What is the highest price Dai has ever reached?
The all-time high price for Dai was $3.67, which was recorded on 2021-11-16. Although Dai is a stablecoin intended to maintain a value of approximately one U.S. dollar, extreme market conditions can cause its price to deviate temporarily from its peg. This historical peak reflects a period of such market volatility. -
Where can I buy Dai?
You can buy Dai on Switchere using a wide range of payment methods including credit cards, debit cards, Apple Pay, Google Pay, SEPA bank transfers, and supported digital wallets. The process typically completes within a few minutes after identity verification. -
Can I buy Dai with a credit card?
Yes. Switchere supports Dai purchases with Visa and Mastercard credit and debit cards. Card payments are protected by 3D Secure authentication and typically settle to your Switchere wallet within a few minutes of approval.
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