Advertisements


Dai Crypto PNG Transparent Images

Download top and best high-quality free Dai Crypto PNG Transparent Images backgrounds available in various sizes. To view the full PNG size resolution click on any of the below image thumbnail.

License Info: Creative Commons 4.0 BY-NC


Submitted by on Sep 3, 2021

Dai (or DAI) is a stablecoin cryptocurrency that uses an automated system of smart contracts on the Ethereum blockchain to keep its value as close to one US dollar (USD) as feasible. MakerDAO, a decentralised autonomous organisation (DAO) comprised of the owners of its governance token, MKR, maintains and regulates Dai, allowing them to vote on changes to specific parameters in its smart contracts to ensure Dai’s stability.

Dai and MakerDAO are often regarded as the first instances of decentralised money to gain widespread acceptance.

MakerDAO’s smart contracts in the form of a decentralised application allow an overcollateralized lending and repayment procedure, resulting in Dai. Users can borrow against the value of their deposits and obtain newly produced Dai by depositing Ether (or other cryptocurrencies recognised as collateral). The collateralization ratio for Ether is presently set at 150 percent, which means that depositing $150 in Ether entitles you to a loan of up to 100 Dai (approximately $100). If the collateral value falls below this threshold, the smart contracts can immediately liquidate the loan. On the other side, if the value of the Dai rises, more Dai can be borrowed.

Advertisements

As a result, when a loan is repaid in full, including interest, the returned Dai is automatically destroyed, and the collateral becomes available for withdrawal. In this approach, Dai’s USD value is secured by the USD value of the underlying collateral owned by MakerDAO’s smart contracts. MakerDAO may regulate the quantity of Dai in circulation and hence its value by regulating the types of acceptable collateral, collateralization ratios, and interest rates for borrowing or storing Dai.

Holders of the MKR token have the ability to propose and make modifications to such variables via code. The owners of the governance token can vote on proposed changes in proportion to the number of tokens they own. The MKR token may also be used to invest in the MakerDAO platform. On top of their loan’s principle, Borrowers’ extra interest is used to purchase and burn MKR tokens on the market (i.e. destroy, permanently take out of circulation). The goal of this technique is to make MKR deflationary in proportion to lending Dai revenues.

Rune Christensen, a Danish entrepreneur, founded MakerDAO in 2014.

Dai and its related smart contracts were formally deployed on the main Ethereum network on December 18, 2017. Despite the fact that the price of Ether, the only collateral available at the time, fell by more than 80% over the same time period, the price of Dai was successfully held near to one US dollar throughout its first year of existence.

Andreessen Horowitz, a venture capital company, spent $15 million in MakerDAO in September 2018, acquiring 6% of all MKR tokens.

MakerDAO established the Maker Foundation in 2018, which is based in Copenhagen and helps to bootstrap the ecosystem by, for example, creating programming required for the platform to function and evolve.

MakerDAO has internal debates in 2019 over whether it should integrate further with the existing banking system. Christenson desired more regulatory compliance so that assets other than bitcoin could be used as collateral for Dai. MakerDAO’s CTO resigned as a result of the conflict.

Dai suffered a deflationary deleveraging spiral in March 2020 as a result of unprecedented market volatility during the start of the COVID-19 pandemic, which led it to trade for up to USD $1.11 at its peak before reverting to its initial $1.00 valuation.

Download Dai Crypto PNG images transparent gallery.

Advertisements

Matched Content:


Related PNG:


Leave a Comment