DAI

DAI represents an ERC-20 stablecoin token introduced by the MakerDAO protocol, built on the Ethereum blockchain. It serves as a facilitator for collateral-backed loans without the involvement of intermediaries. Each DAI is pegged to the U.S. dollar at a 1:1 ratio, ensuring its value corresponds to $1 USD. DAI operates as a decentralized crypto-backed stablecoin, maintaining its peg through the use of collateral in the form of cryptocurrencies such as ether (ETH).