Harnessing the potential of blockchain technology, MakerDAO is on a path to unlock and transform the global financial system. In December 2017, they invented a digital currency SAI, the only Stablecoin that was immune to censorship. The advent of SAI not only encouraged the existing wave of decentralized finance or DeFi applications but its successor DAI also played a pivotal role in fuelling DeFi integrations.
While DeFi projects on Ethereum network integrates a myriad of digital currencies, DAI has become the most used cryptocurrency in the decentralized financial space. Backed by a surplus of collateral and the Maker Protocol, DAI is a decentralized Stablecoin, softly-pegged to the US Dollar. Simply put, DAI is a better, smarter version of digital cash.
Why is DAI the most popular cryptocurrency in the DeFi sector?
DAI Stablecoin has opened new doors for the financial services industry. Transparent, borderless, and reliable, DAI furnishes stability and liquidity to the otherwise fluctuating crypto world. It offers features and advantages to traders that other cryptocurrencies can’t.
Unlike fiat-backed Stablecoin, DAI is an exceptional crypto-backed cryptocurrency hinged on Ethereum that maintains its steady value. It facilitates greater security, trust, and transparency across the crypto trading network. Moreover, the smart contracts that underpin the DAI’s protocols have been formally verified and thoroughly audited without the interference of any central organization.
DAI’s advantages have provided the DeFi community with a high degree of confidence in the Stablecoin’s utility and the features of the Maker Protocol. The benefits further contribute to the vibrancy, growth, and overall crypto network effectiveness.
Fast and Convenient
Reckoned as a stable medium of exchange, DAI can be used for cross-border transactions, repayment of debts, and payment for goods and services. Transferring money across countries using traditional financial services can be time-consuming and expensive.
For instance, at the time of publishing this article, Bank of America charges $45 to wire transfer USD internationally while Western Union’s fee for sending every $1000 is $9. But since the Maker protocol is devised on the blockchain, traders can make peer-to-peer DAI transactions. Not to mention, the transfer would process within seconds and at a much lower rate of the traditional means.
A complete package
Banks and other financial companies require a handful of information from the would-be users including personal details, minimum deposit accounts, and even proof of good credit. These requirements can be a potential risk to share and can be stifling in many forms.
However, regardless of the economic standing, the DAI Stablecoin enables anyone, anywhere to gain access to the financial services, providing unparalleled financial freedom.
For instance, in Argentina, where inflation has plagued the entire monetary system, the government has put restrictions on capitals and withdrawals. Not only did it hurt sentiments of the nationals but also forced them to face a darker, bitter world. For such citizens, DAI furnishes a solution: easy and quick access to a more stable currency. One DAI token is of the same worth as it is in the US, Argentina, or anywhere else in the world. It can also be exchanged via a P2P network without any intervention from banks or third parties.
Trade DAI with NitroEx
As the Ethereum-based Stablecoin DAI continues to successfully maintain its USD peg, the faith in the cryptocurrency’s potential will keep on increasing. We, at NitroEx crypto exchange, understand the flair of DAI Stablecoin in the DeFi sector and the endless possibilities it has to offer in the crypto world. We enable traders and institutional investors to explore DAI utilities through NitroEx and extend the market to buy and sell cryptos at the lowest trade rates. If you wish to know more about DAI Stablecoin or want to trade DAI with NitroEx, reach out to us at [email protected]