Daiflash.com has launched “What Is MakerDAO Stablecoin?” – a new 2022 guide for crypto beginners, exploring DAI, the latest decentralized currency built on top of the Ethereum blockchain. Readers benefit from detailed insight into how DAI tokens work and ways in which they can invest for themselves.
The new guide is authored by Chris Munch – a respected digital entrepreneur and cryptocurrency expert. The article outlines the history of stablecoin and why DAI represents a departure from earlier iterations such as Demini Colin, USDC, and PAX.
According to Yahoo, there were approximately 5.5 DAI in circulation as of July 2021. DAI’s value is ‘soft-pegged’ to the value of US dollar and is made by taking out a loan on the MakerDAO platform. When its price dips below the one dollar level, MakerDAO increases interest rates as an incentive to customers to return their DAI and close their loans. The company destroys the returned DAI, keeping supply limited. This, in turn, drives the price back up. A similar mechanism is enacted in reverse when DAI’s value exceeds one dollar.
Daiflash’s article explains that DAI has undergone a steady growth in usage and market capitalization since its creation in 2013. Furthermore, it is unique among stablecoins in that it does not rely on collateral held by a company. Instead, the process is controlled via smart contracts relating to Collateral Debt Positions taken out with MakerDAO.
According to Munch, among the many benefits of DAI crypto is low-cost remittance, enabling rapid and inexpensive purchasing of goods, services, and overseas transfers with minimal gas fees incurred.
Other advantages include no minimum deposit requirement and no geographical or liquidity restrictions. The Maker DAO platform also provides complete transparency for every event and transaction that happens. In addition, users can generate more DAI by storing surplus collateral in Maker vaults.
The article also discusses why the stability that comes with the DAI coin makes a refreshing change for crypto financiers in a market characterized by volatility and sudden price fluctuations.
Author Chris Munch writes, “This beginner’s guide will teach you how to invest in MakerDAO and how DAI works so you can make the most of your money.”
With its latest report on MakerDAO and the emerging stablecoin market, Daiflash.com continues to make cryptocurrency accessible to the masses.