What is the purpose of Dai in the cryptocurrency market?

3 answers

• Dec 18, 2021 · 3 years ago
  Dai is a stablecoin that aims to solve the volatility issue in the cryptocurrency market. Unlike other cryptocurrencies, Dai is pegged to the value of the US dollar, which means its price remains relatively stable. This stability makes Dai a reliable store of value and a useful medium of exchange in the cryptocurrency ecosystem.
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• Dec 18, 2021 · 3 years ago
  Dai is backed by collateral, primarily Ether (ETH), which is locked up in smart contracts. This collateralization mechanism ensures that there is always enough value to support the circulating supply of Dai. It also allows users to generate Dai by locking up their Ether as collateral, providing them with a decentralized borrowing and lending platform.
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• Dec 18, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the importance of Dai in the market. Dai offers users a stable and reliable cryptocurrency that can be used for everyday transactions. With its peg to the US dollar, Dai provides a hedge against the volatility of other cryptocurrencies, making it an attractive option for traders and investors alike.
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