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DAI is a stablecoin (stable cryptocurrency) whose value is linked to that of the US dollar, and which is part of the MakerDAO decentralized development community.
They are currently backed by a CDP (collateralized debt position) smart contract, a type of smart contract that guarantees system stability and price.
It is based on the Ethereum crypto platform, so all the information about the project and its operation is public.
The US dollar. According to the contract, each DAI is backed by at least 150% of its collateral value to maintain stability, in conjunction with other mechanisms such as interest rates.
DAI works with the Ethereum ERC-20 protocol, which allows the creation of fungible (i.e., exchangeable) tokens. To create DAI, it is necessary to immobilize another cryptocurrency, which remains in the custody of the smart contract to guarantee the value of the DAI.
