All You Should Know About DAI

NOWPayments is thrilled to announce: we support DAI. NOW, anyone can accept DAI as payment!

What is DAI?

DAI is a decentralized, collateral-backed cryptocurrency developed by an open-source software called Maker Protocol. It’s also known as MakerDAO where DAO stands for decentralized autonomous organization, signifying the organizational nature of the Maker Protocol.

DAI runs on the Ethereum blockchain. As a crypto asset, DAI aims at maintaining a stable 1:1 value with US dollars. In the process, it keeps other crypto assets locked in the contracts. What it means is that DAI uses collateralized debt denominated in Ethereum’s cryptocurrency Ether (ETH).

Awesome Features of DAI

What is DAI?
Source: MakerDAO
  • DAI stablecoin is a price-stable currency with 1 DAI being equal to 1 US dollar. Users are in full control of their holdings without running the risk of volatility. They are also in charge of generating their own DAI coins.
  • The DAI savings rate is determined by the Maker Protocol token MKR holders. 
  • In terms of its utility, DAI has been integrated by more than 400 applications and services that include wallets, DeFi platforms, games, etc.
  • DAI is censorship-resistant
  • You can mint DAI from other collateral

The Top Uses of DAI

There are many ways in which DAI stablecoin is used around the world. Here, we have listed some of its top areas of application.

Inflation Protection

Being a stablecoin maintaining a 1:1 value proposition, DAI is used by many countries that suffer from a high volatility when it comes to national currency. Especially, the Latin American countries especially prefer DAI for inflation protection and savings. DAI crypto is Argentina’s most popular cryptocurrency, the Latin American country that suffered from a more than 40% inflation rate in 12 months. It is also popular in Argentina’s neighbouring countries such as Brazil, Columbia, and Venezuela.

Gaming

Crypto in online gaming is widespread. Gamers frequently use cryptocurrencies to trade valuable items and collectibles. DAI is favoured over other cryptocurrencies for in-game trading because it is a borderless stable currency. It does not come with the risk of slowing the transfer of funds or getting expensive based on the location of the gamer and its banking arrangements. Many popular games, such as Axie Infinity, Forgotten Artifacts, and Marble Cards have integrated DAI

Digital Art 

DAI has also gained popularity as a mode of payment for buying digital art. Many digital artists who prefer the one-of-a-kind, limited-supply blockchain assets to represent their original artworks have chosen to opt for DAI. Several popular art platforms have also chosen to integrate DAI. These platforms include Foundation, OpenSea, The Museum of Contemporary Digital Art (MoCDA), etc. The digital art platform Foundation has also named DAI ‘culture’s currency’. 

DAI Tokenomics

The current circulating supply of DAI tokens stands at 994,754,470 DAI coins. Unlike Bitcoin and Ether, new DAI tokens are not produced through mining. Neither DAI is minted by a private company as per its issuance policy. Users mint DAI leveraging the Maker Protocol.

Unlike many other crypto tokens, there is no upper limit on the total supply of DAI. The total supply changes with the volume of collaterals stored in the vaults.

Being an Ethereum-based, ERC 20-compatible token, the DAI network is secured by Ethereum’s Ethash algorithm.

Where to buy DAI Crypto?

One can purchase DAI crypto on several online platforms. The well-known DeFi swap protocols, such as UniSwap and Compound, sell DAI. Other than these, the traditional cryptocurrency exchanges, such as Coinbase Pro, Binance, OKEx, HitBTC, also make DAI available for buying. 

Businesses that Accept DAI

As noted earlier, the stability of DAI price has already made it a useful mode of payment for the gaming and authentic limited-edition digital art community. Many leading crypto payment service providers such as NOWPayments provide an option for online retailers to accept payments in DAI.

As NOWPayments makes it possible for businesses to accept payment in DAI, this will help sellers and merchants around the globe. Businesses accepting DAI payments include some of the big brands such as Origin, Travala, Bidali Gift Cards, Open Bazaar, and many more. 

With the increasing popularity of DAI, many new businesses are starting to accept DAI payment. With time, the numbers will keep on growing. 

Summary

Where to buy DAI Cryptocurrency?

The future of DAI stablecoin is one of innovation and growth. The borderless nature of the currency, combined with its stability and transparency, would not only make it an important player in the overall blockchain industry, but it will also help DAI to become a fostering agent of new products and services for the community to explore. 

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Why use NOWPayments.io?

NOWPayments is the easiest way to accept online payments in a wide variety of cryptocurrencies. This service is custody-free, has competitive fees and is available worldwide.

  • Over 50 cryptocurrencies are accepted on the platform with an in-built exchange feature;
  • API, widgets, plugins and a donation button are all easy to integrate;
  • It is a non-custodial service ensuring the security of your funds;
  • A very simple setup

Crypto happens – accept it NOW!