Dai is the largest decentralized stablecoin on the Ethereum network, issued and managed by the MakerDAO project. It serves as the infrastructure for decentralized finance (DeFi). Dai maintains a 1:1 peg to the US dollar and is built upon the Maker Protocol, also known as the Multi-Collateral Dai (MCD) system. The Maker Protocol allows users to deposit approved collateral assets into the protocol, approved by "Maker Governance," in order to generate new Dai. Dai is a decentralized and collateral-backed cryptocurrency that is unbiased and pegged to the US dollar. The goal of Dai is to offer a decentralized, transparent, and stable digital asset that enables users to store and transact with stable value in the cryptocurrency space.
The Maker DAO is a Decentralized Autonomous Organization (DAO) founded in 2014. Dai was issued by the Maker DAO on September 19, 2017 and currently has a total supply of over $5 billion.
Due to the high volatility of the cryptocurrency market, a single collateral can easily lead to large-scale liquidation. MakerDAO introduced some RWA assets as collateral for Dai, and the total value of RWA as collateral currently exceeds 2.80 billion US dollars. In the Endgame plan proposed by the co-founders of MakerDAO in May 2022, RWA was also introduced as a transition. This plan aims to achieve a higher level of decentralization and resistance to external risks in Makerdao.
Above are only for introduction, not intended as investment advice.