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Dai

DAI

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Past performance is not a reliable indicator of future results. Learn more about asset risks.

Investment Risk

Baseline risk

All crypto-assets are risky, regardless of the type of token you hold. Here are some ‘baseline’ risks to be aware of before deciding to invest.

Investment risk: The performance of most crypto-assets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in crypto-assets.

Lack of protections: Crypto-assets are largely unregulated and neither the Financial Services Compensation Scheme (FSCS) nor the Financial Ombudsman Service (FOS) will protect you in the event something goes wrong with your crypto-asset investments.

Crypto-assets are complex: It may be difficult to understand the risks associated with a crypto-asset investment. Do your own research and if something sounds too good to be true, it probably is.

Don’t put all your eggs in one basket: Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments such as crypto-assets.

Stablecoins

‘Stablecoin‘ (e.g. , ) is the term often used for crypto-assets that claim their value is linked to certain reserve assets such as a fiat currency (e.g. US Dollars). Stablecoins may use a range of different ways to maintain stability, each with their own risks

Counterparty risk: Where the asset is backed by collateral (e.g. fiat currency) you are relying on a third party to maintain that collateral which introduces risk if the party becomes insolvent or fails to maintain the necessary collateral.

Redemption risk: If the asset claims to be redeemable for underlying collateral, there is risk that the redemption process will not work as expected e.g. in times of market volatility or due to operational issues.

Collateral risk: There’s a risk that the value of the collateral could decline or become volatile, affecting the stability of the asset (e.g. where the collateral is another type(s) of crypto-asset(s)).

FX risk: Lots of stablecoins are denominated in US Dollars, meaning you will be exposed to movements in the USD:GBP exchange rate

Algorithm risk: If the asset relies on an algorithm to maintain stability (e.g. by adjusting supply based on demand) there’s a risk the algorithm could fail or behave unexpectedly, which might cause the asset to lose its stability and even lose all its value.

About Dai

Dai (DAI) is a decentralized stablecoin running on Ethereum (ETH) that attempts to maintain a value of $1.00 USD. Unlike centralized stablecoins, Dai isn't backed by US dollars in a bank account. Instead, it’s backed by collateral on the Maker platform. Note: if the Dai credit system is upgraded or shutdown, Dai holders may need to convert their Dai to Ethereum through the Maker platform. Read more at makerdao.com/whitepaper.

Dai is a stablecoin that is stabilized against the value of the US dollar. A stablecoin is a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin. Running on Ethereum blockchain, MakerDAOProtocol created the Dai token. The token is a decentralized collateral-backed stablecoin that intends to keep its value near or equal to $1.

One major roadblock in the mainstream adoption of cryptocurrencies for transactions is high volatility. Nobody wants to pay with a currency that has the potential of doubling its value in a short time or wants to be paid in a currency that can lose value significantly. This problem has led to the birth of many stablecoins like Dai. The whitepaper suggests that MakerDAO aims to solve these problems and bring stability to the cryptocurrency economy and believes a stablecoin is essential for any business to realize the advantages of digital currency. 

Stablecoins aim to provide many inherent benefits to the cryptocurrency ecosystem, like secured transactions, lower fees, quick settlements, and instant transfer. They can offer a stable value during times of volatility in the markets. Furthermore, they can be used as a stable and reliable cryptocurrency for global payments and sent in large amounts to anyone with a wallet.

For Dai to maintain a stable value of $1, the Maker protocol implements game theory. The protocol smartly maintains and balances the economic incentives to constantly keep the value of Dai near $1. Whenever the value of Dai goes below $1, the protocol incentivizes users to increase the price. On the contrary, if and when the value of Dai goes above $1, the incentives work the other way around.

Talking about the token, Dai is an ERC-20 token that aims to be easy to generate, access, and use. The token is backed by collateral assets that are deposited into the Maker vault of the protocol. As illustrated in the whitepaper, the Dai token, like traditional currencies, has certain benefits: since the token aims to have a stable value, for example, 1 Dai = $1, it can be used for exchange and can be used to settle debts and deferred payments. Therefore, it can be said that Dai has functionality similar to a traditional currency.

MakerDAO launched Dai stablecoin in December 2017. MakerDAO was created in 2015 by Rune Christensen

Rune Christensen is an entrepreneur from Sealand, Denmark. Before MakerDAO, Christensen studied international business and biochemistry in Copenhagen. He was also the cofounder of the Try-China International recruiting company.

The Maker protocol only considered ETH as collateral for Dai during its inception. However, the technology got upgraded to include BAT and USDC in November 2019. Subsequently, the Dai system became multicollateral, using different cryptocurrencies as collateral.

The MakerDAO protocol easily creates new Dai tokens. As already discussed, Dai is a collateral-backed asset where the collateral is stored in Maker vaults. Once users deposit the collateral assets into Maker vaults, the protocol issues new Dai tokens. The user can easily gain access to the liquidity, and new Dai tokens are entered into circulation.

Further, the whitepaper suggests that Dai tokens may be staked through the Dai Saving Rate (DSR) protocol. The DSR is a native smart contract that runs on the MakerDAO system. Dai tokens can be locked into a DSR contract, enabling the users to earn yield at the current rate. The additional benefits that DSR provides for Dai staking are the ability to withdraw Dai tokens at any point in time and no minimum staking requirement.

The maximum number of Dai tokens is not fixed and is volatile. However, as of the writing of this article (January 19, 2022), there are a total of 9.7 billion Dai tokens issued.

Coinbase Exchange is currently one of the active exchanges for Dai trading. Coinbase is a user-friendly platform that offers a secure way to trade Dai.

Market

United Kingdom Market Stats

Market cap

£4.2B

Volume (24h)

£419.9M

Circulating supply

5.3B DAI

Typical hold time

8 days

Popularity

#22

All time high

£1.08

Past performance is not a reliable indicator of future results. Learn more about asset risks.

This data was sourced in real-time from Coinbase and other third party market vendors. Real-time data may encounter temporary delays due to system performance or downtime.

United Kingdom Market performance

Price change (1h)

+0.01%

Price change (1d)

0%

Price change (1w)

+0.02%

Price change (2w)

-1.2%

Price change (1m)

+0.02%

Price change (1y)

+0.01%

Past performance is not a reliable indicator of future results. Learn more about asset risks.

This data was sourced in real-time from Coinbase and other third party market vendors. Real-time data may encounter temporary delays due to system performance or downtime.

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Guides

Coinbase Bytes

Dai is on the rise this week.

The current price is £0.79 per DAI with a 24-hour trading volume of £419.92M. Currently, Dai is valued at 26.83% below its all time high of £1.08. This all-time high was the highest price paid for Dai since its launch.

The current circulating supply of Dai is 5,347,888,595.746 DAI which means that Dai has as total market cap of 5,347,888,595.746.

FAQ

What is the current price of Dai?

We update our Dai to GBP currency in real-time. Get the live price of Dai on Coinbase.

What is the market cap of Dai?

The current market cap of Dai is £4.21B. A high market cap implies that the asset is highly valued by the market.

What is the all time high of Dai?

The all-time high of Dai is £1.08. This all-time high is highest price paid for Dai since it was launched.

What is the 24 hour trading volume of Dai?

Over the last 24 hours, the trading volume of Dai is £419.92M.

What other assets are similar to Dai?

Assets that have a similar market cap to Dai include Chainlink, Polkadot, Polygon, and many others. To see a full list, see our comparable market cap assets.

How many Dai are there?

The current circulating supply of Dai is 5.3 billion.

What is the typical holding time of Dai?

The median time that Coinbase customers hold Dai before selling it or sending it to another account or address is 8 days.

What is the relative popularity of Dai?

Dai ranks 61 among tradable assets on Coinbase. Popularity is currently based on relative market cap.

What is the current trading activity of Dai?

Currently, 97% of Coinbase users are buying Dai. In other words, 97% of Coinbase customers have increased their net position in Dai over the past 24 hours through trading.

Can I buy Dai on Coinbase?

Yes, Dai is currently available on Coinbase’s centralized exchange. For more detailed instructions, check out our helpful how to buy Dai guide.

This data was sourced in real-time from Coinbase and other third party market vendors. Real-time data may encounter temporary delays due to system performance or downtime.

Certain content has been prepared by third parties not affiliated with Coinbase Inc. or any of its affiliates and Coinbase is not responsible for such content. Coinbase is not liable for any errors or delays in content, or for any actions taken in reliance on any content. Information is provided for informational purposes only and is not investment advice. This is not a recommendation to buy or sell a particular digital asset or to employ a particular investment strategy. Coinbase makes no representation on the accuracy, suitability, or validity of any information provided or for a particular asset. Prices shown are for illustrative purposes only. Actual cryptocurrency prices and associated stats may vary. Data presented may reflect assets traded on Coinbase’s exchange and select other cryptocurrency exchanges.

This Financial Promotion has been approved by Archax LTD on February 7, 2024