Where Dai is Accepted Locally and Globally
Dai is the stable ethereum-based decentralized currency that does not discriminate, each token is worth one US dollar. Being stable it’s appealing to businesses, large and small, who accept it as payment for a plethora of services and products — from aromatherapy essential oils diffusers to French scented candles.
Who Accepts Dai
Are you an Entrepreneur, freelancer, or manager of a business accepting cryptocurrency?
Should you buy Dai?
Buying Dai is somewhat like buying US Dollars, you can anticipate it being inflated as the fiat money supply increases. If you want to make a hedge-against-inflation investment there are better options like Bitcoin itself or gold-backed cryptocurrencies. Stablecoins like Dai serve a different purpose, they allow crypto traders to stabilize their gains — maybe you enjoyed windfall profits from investing in a hot ICO, park those profits into a stablecoin that will hold its value until you are ready to risk them again in the market. Dai is also a darling of the DeFi space; if you don’t urgently need your money to pay bills or make investments stake Dai for 30, 60, or 90 days and you’ll enjoy interest rates that beat whatever your bank offers.
Dabbling in DeFi can be lucrative but it’s complicated and easy to lose your money if you don’t know what you’re doing, so please don’t impulsively jump in to swim with the sharks — take time to thoroughly educate yourself about the risks and opportunities in DeFi. Unless I was a real DeFI wizard, I’d rather stabilize my profits by converting crypto gains into gold-backed crypto or even Bitcoin if you’re willing to hold through its 4-year halvening cycles.
About
Crypto analysts seem to agree that Dai is the best dollar-backed stable coin, with the others there are legitimate concerns about centralization or whether they actually have dollar reserves backing the crypto tokens (looking at you, Tether!)
The Maker Protocol, also known as the Multi-Collateral Dai (MCD) system, allows users to generate Dai by leveraging collateral assets approved by “Maker Governance.” Maker Governance is the community organized and operated process of managing the various aspects of the Maker Protocol. Dai is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. Resistant to hyperinflation due to its low volatility, Dai offers economic freedom and opportunity to anyone, anywhere.
This white paper is a reader-friendly description of the Protocol, which is built on the Ethereum blockchain. Technically savvy users might want to head directly to Introduction to the Maker Protocol in the Maker Documentation Portal for an in-depth explanation of the entire system.
From the abstract of the Maker Protocol whitepaper
Dai (or DAI) is a stablecoin cryptocurrency which aims to keep its value as close to one United States dollar (USD) as possible through an automated system of smart contracts on the Ethereum blockchain. Dai is maintained and regulated by MakerDAO, a decentralized autonomous organization (DAO) composed of the owners of its governance token, MKR, who may vote on changes to certain parameters in its smart contracts in order to ensure the stability of Dai.
From Wikipedia
