What are the underlying assets that secure the stability of Dai in the crypto industry?

3 answers

• Dec 17, 2021 · 3 years ago
  Dai, a stablecoin in the crypto industry, is backed by a combination of different assets to ensure its stability. These assets include cryptocurrencies such as Ether (ETH), which are held in smart contracts called Collateralized Debt Positions (CDPs). The value of these assets is monitored and adjusted to maintain the stability of Dai. By using a diversified pool of assets, Dai is able to minimize the risk of volatility and maintain a stable value.
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• Dec 17, 2021 · 3 years ago
  The stability of Dai is secured through a mechanism called the Maker Protocol. This protocol ensures that the value of Dai is always pegged to the US dollar. The underlying assets, such as Ether, act as collateral for the issuance of Dai. If the value of Dai deviates from the US dollar, the Maker Protocol automatically adjusts the supply of Dai by either increasing or decreasing the collateral. This mechanism helps to stabilize the price of Dai and maintain its peg to the US dollar.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, plays a crucial role in securing the stability of Dai. As a trusted exchange, BYDFi provides liquidity for Dai and ensures that there is a healthy market for buying and selling Dai. This liquidity helps to stabilize the price of Dai and ensures that users can easily convert Dai to other cryptocurrencies or fiat currencies. BYDFi's commitment to maintaining a fair and efficient market for Dai contributes to the overall stability of the cryptocurrency industry.
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