The Single Collateral DAI cryptocurrency is the first stablecoin from the Maker platform, the functionality of which is designed to solve two existing problems of modern crypto: volatility and reliability. The first factor is practically absent from DAI, as it is tied to a fairly stable currency - the US dollar. Based on this, investors lose interest in financing.

However, along with this, the positive effect of this phenomenon was fixed: the crypt forms itself in the form of a stable monetary unit, which allows financial transactions to be carried out without the risk of losing funds when the exchange rate changes.

The second factor is reliability. At the moment, it is very relevant, since there is far from 1 crypt attached to the dollar. The question of trust is still open, as few currencies offer their holders asset transparency and stable emission.

About Single Collateral DAI

Single Collateral DAI is one of the decentralized digital currencies that is attached to the dollar exchange rate. Like many others, it runs on the Ethereum platform.

According to the developers, DAI is a stable crypt, which was created on the principle of "no discrimination". This makes it accessible to both individuals and small, medium or large businesses, without exception.

The $ 1 equivalent is supported through automatic pricing mechanisms built into smart contracts. When Dai costs more than $ 1, the system works to reduce the tariff. Conversely, when the price is below $ 1, the program stimulates a rise in the rate.

The purpose of this organization was to ensure the stability of the economy and the transparency of operations, as well as to provide all people with equal access to the global financial market.

The history of the Single Collateral DAI cryptocurrency dates back to 2015, when Maker DAO created its first token on the Ethereum platform. In January 2016, the developers presented a draft of their new platform, which was launched in April of the same year. All stablecoin holders were given a vote on how to improve the network.

The creator of the Single Collateral DAI cryptocurrency Runa Christensen announced the launch of the DAI token in August 2017. The crypt itself entered circulation on December 17, 2017. At that time, its rate was a record low of $ 0.903243.

The development community consists of 20 people, where key roles are played by:

Runa Christensen - Executive Director;
Stephen Becker - President and Chief Operating Officer;
Wouter Campman - Technical Manager;
Coulter Muligan is the head of marketing.
The Dai protocol uses a two-channel system. For this, the currency is guaranteed by a pledge. Any asset based on the Ethereum base is accepted as it, subject to its approval by token holders.

Single Collateral DAI Capabilities

Dai can be freely traded like any other ERC-20 token. Each owner of an Ethereum wallet has the right to conduct all operations with crypto without intermediaries.

The Single Collateral DAI crypto is the same means of payment as regular money, which, unlike it, is not subject to inflationary risks. Its purpose is to meet the needs of the holder.

The nature and type of transactions depends on the wishes and intentions of the owner. At this stage, users have the following options:

currency exchange;
purchase of assets and objects of the material world;
return of debt obligations;
money transaction;
loan;
lending;
capitalization;
payment for services, etc.
The list of opportunities offered by cryptocurrency is not exhaustive. He is influenced by the politics of this or that continent.

For example, South Korea is notorious for its volatile position in relation to the regulation of digital transactions. At one time, a complete ban is introduced on the crypt, at another, all markets are opened for circulation.

In the USA, with the help of Dai, they receive a stable income. The state uses it for lending to businesses, borrowing tokens from individuals and legal entities for a short period of time (up to six months).

How a Single Collateral DAI is created

The Dai Stablecoin System includes a set of smart contracts that allow anyone to issue currency by blocking collateral (other valuable crypto assets) on the system. Smart contracts are launched randomly, but with the condition that all requirements are met. This feature allows you to make the transfer of digital assets more secure.

You can store the crypt only on those wallets and exchanges that support the ERC-20 protocol. Users can create tokens themselves. This process is possible using CDP or MKR. The CDP case includes some features:

The first step is to open a transaction to create a CDP.
This is followed by the acquisition of ETH and their further transfer to the address of the smart contract as collateral assets.
Freezing.
Issue of coins (depends on the amount of invested ETH). In the event that the client wants to return his funds, he will need to redeem the collateral money, and the DAI will be burned out.
Fiat currency is also used in this process. A collateralized debt position (CDP) is generated. At the end of the procedure, the user also receives his coins for sure.

MKR is the second token of the site, the purpose of which is to ensure the fixing of the price of the stablecoin.

To start earning, you need to activate the Dai Savings Rate (DSR). It is an add-on to the Maker protocol. This requires interaction with the contract with the DSR bank when transferring from the wallet to the Maker Protocol. Dai is redirected. Further, the client can both place orders for assets and carry out urgent transactions.

The "exit" function will help to get the accumulated savings, which transfers a certain amount of currency back to the collateral asset.

There are no liquidity restrictions for DAI, so it is not subject to freezing or blocking. It can always be redeemed urgently.

Integrating Single Collateral DAI into your smart contract is not an easy task, which happens as follows:

Writing your own code.
Selecting an interface that will display all requested functions.
Creation of auxiliary contracts.
Deploying Smart Contract.
Using.
Confirmation of the contract.
This process includes working with digital technologies, but once it is completed, the creator has the opportunity to interact, withdraw and destroy coins.

Is Single Collateral DAI Infinite?

At the moment, 101 696 625 units of the Single Collateral DAI cryptocurrency have been issued, each of which is in circulation. Capitalization is more than $ 51,378,345. These figures are increasing every day.

Some crypto assets are limited in emission, like Bitcoin. Users mine them, but the total amount of currency is known in advance. With Give, the opposite is true. The coin holder can issue his tokens at will. For this, the collateral is used in any asset that the platform allows. It must be frozen for a while. After that, DAI is issued based on the volume of coins in the users possession.

Upon completion of all operations, the owner can get back his security amount, and the tokens are burned. Thus, the Single Collateral DAI circulation process is endless as long as:

There is a public demand.
The digital economy is developing.
The coin is being converted.
The dollar maintains its stable position in the world market.
The prospects for the crypt are great, because its use is relevant not only when doing business, but also when financing projects, as well as in everyday conditions. The issue of Dai will always depend on two factors: the exchange rate of the US dollar and the volume of the collateral currency. The second criterion falls entirely on the shoulders of the stakeholders.

The developers fixed the permissible deviation from the USD exchange rate at 5%. This is a good indicator for fiat money, but you shouldnt count on big earnings. The crypt is intended for trading, concluding transactions, conducting custom calculations and storing savings.

Thus, the emission of the coin will take place as long as the society is interested in the aforementioned possibilities of the currency.

Strengths of Single Collateral DAI

When analyzing the Single Collateral DAI, the following 3 features of the currency should be emphasized:

Stability.
Decentralization.
Transparency.
The first is achieved by artificially adjusting the value assigned to the US dollar. The minimum rate of the Single Collateral DAI cryptocurrency was $ 0.9959317, and the maximum one was $ 1.1.

Volatility during the day is estimated at no more than 2.13%, which is very small compared to other competitors. During the week, this figure fluctuates within 3.01%.

Decentralization is achieved through the platform on which Dai is deployed. The functioning of the entire system does not depend on the wishes of the monopolists. Nobody sets the volume of emission and does not guess the desired course. The currency is subject to the rules set by the program and the public demand.

Behind transparency is ease of accounting and auditing. Anyone can track Single Collateral DAI transactions. The crypto allows you to get acquainted with all orders that take place in the market, as well as study the trading history of each coin.

DAI token is not mineable. It can be obtained exclusively through barter between assets. This arrangement eliminates the unnecessary costs of computing equipment, so that the purchase of a coin is limited by the cost price.

Also, the strengths of the currency include:

Liquidation and user generation thanks to the system algorithm.
Reliability. It instills in the user confidence in the real attachment of the crypt to assets from the material world.
The disadvantages of DAI include, perhaps, the complexity of the mechanism of operation. A beginner will have to delve into the system a little and figure it out before taking action. In addition, the client pays an annual commission as payment for the transactions performed. Its size is 0.5% of the volume of issued tokens.

Single Collateral DAI in TOP currencies

About 2,364,592 DAI with a total trading volume of $ 2,354,972 are subject to exchange per day. Transactions with Dai take place on 14 exchanges and 46 active markets, which indicates that the crypt is in demand and recognized by the world community.

The rate of the Single Collateral DAI cryptocurrency in relation to Bitcoin is estimated as 1 BTC = 7272.47 DAI. In the CoinMarketCap ranking, the coin is ranked 83rd.

There are more than two hundred types of stablecoins in the world. Some of these projects have already been closed, others are at the development stage, and others are actively developing and increasing their funds. DAI is a complete program with at least 5 serious competitors.

Its capitalization is $ 45,962,353.89. This is lower than that of the main rivals, but the primacy is achieved through another advantage - decentralization. At the moment, it is the only most well-known stablecoin that is secured by a collateralized crypt and is controlled by smart contracts.

DAI is a safe and transparent coin, which greatly increases public interest in it. Earnings on it are insignificant, it is used to store and stabilize digital assets with minimal risk.