DAI is an Ethereum-based stablecoin, issued, developed, and managed by the Maker Protocol and the MakerDAO decentralized autonomous organization. The price of DAI is pegged relative to US dollars and is collateralized with a mixture of other cryptocurrencies that are deposited into smart contract vaults each time a new DAI coin is minted.

DAI was launched in November 2019. DAI caters to traders and investors. They tend to add stablecoins like DAI as a haven asset to their portfolio; stable prices can help them offset market fluctuations.

Another significant advantage of DAI is the fact that it is not managed by a private company but by a decentralized autonomous organization (DAO) through a software protocol. As a result, all token issuances and burns are publicly managed and recorded by self-executing smart contracts powered by Ethereum, making the entire system more transparent and less corrupt.

In addition, DAI software development is managed more democratically through direct voting by regular participants in the token’s ecosystem.