The DAI stablecoin is available on the platform
TokenScope now supports DAI. DAI is an ERC-20 stablecoin on the Etherium blockchain backed to the US dollar. Unlike other stablecoins, such as Tether, DAI is fully decentralized, which means that there is no centralized organization or authority that controls the circulation of DAI. DAI, formerly known as SAI, is regulated by MakerDAO, a decentralized autonomous organization that is run by owners of MakerDAO cryptocurrency Maker (MKR).
Same as other stablecoins DAI's value is backed to fiat currency and secured by other values stored. If someone has one DAI in crypto wallet, this value is represented by keeping equivalent values stored at MakerDAO. However, unlike most popular stablecoins the DAI’s price of $1 is result of a collateralized loans and repayment process carried out by Maker Protocol which is a smart contract and decentralized application on the Etherium blockchain. DAI tokens are generated from a tool called Vault. If DAI’s value exceeds $1 it is profitable to ETH holders to create more DAI coins and sell them. When the price is less than $1 the DAI holders may return their debts at a lower rate. Generation and destruction of DAI coins, demand and supply ensure that Dai is always pegged to one US dollar.
To obtain DAI a user must deposit ETH or other cryptocurrency on Etherium blockchain as collaterals. The newly generated DAI is going to be paid to the user as a loan. The minimum security that can be provided must be at least 150% of the lending value. That means that if someone wants to get $10 on DAI the minimum security of $15 must be payed out. When user returns the loan a small fee must be payed and the security will be released and DAI tokens will be automatically destroyed. If the collateral price of the loan falls below minimum ratio of 150% of the loan the Maker Protocol automatically sells the cryptocurrency that was used for collateral.
The DAI is popular among crypto traders as it can be used to trade other cryptocurrencies without selling out your available assets. You can take a loan using your crypto as a collateral and return it later after getting trading profit.
As DAI runs on the Etherium blockchain it can be commonly stored in Ethereum crypto wallets, such as MetaMask or MyEtherWallet. As an alternative, you can store DAI using cryptocurrency exchanges as it same as other stablecoins is a convenient asset for trading with other cryptocurrencies. However, the TokenScope team recommends to store your crypto using hardware wallets which is the safest storage option as all your private keys are physically located on your hardware. As any other cryptocurrency DAI can also be used by fraudsters for criminal offenses or money laundering. From now, If you want to mitigate risks to obtain “dirty” crypto you can check your DAI credential with our risk assessment service. Also, if you want to know more about cryptocurrency we recommend you to take a look to our special guide.
You can always report us any cases related to specific cryptocurrency addresses and the considered risks at TokenScope via "Reporting a cryptocurrency address" form. This will help to protect other users from the risks of interacting with such addresses and their owners.
