How does MakerDAO's decentralized stablecoin work?

1 answers

• Mar 06, 2022 · 3 years ago
  MakerDAO's decentralized stablecoin, Dai, is a revolutionary concept in the world of cryptocurrencies. Unlike other stablecoins that are issued by centralized entities, Dai is created through a decentralized process. Users lock up their collateral in smart contracts and generate Dai tokens, which are pegged to the value of the US dollar. The decentralized nature of MakerDAO's stablecoin ensures that it is not controlled by any single entity, making it more resistant to censorship and manipulation. Additionally, the collateralization mechanism provides stability and ensures that the value of Dai remains pegged to the US dollar. This unique combination of decentralization and stability makes MakerDAO's stablecoin stand out in the cryptocurrency market.
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