Deep Dive into Dai (DAI)

Emirex Group | Oct 26, 2020 4:18:32 PM

DAI is a decentralized stablecoin created via the Makers (MKR) Dai Stablecoin System. On 1st of October, Dai (DAI) was listed for trading on the Emirex exchange. 

Current available trading pair on the Emirex exchange: DAI/USDT, DAI/BTC

  • Dai is a decentralized stablecoin created by MakerDAO (MKR) equaling one US dollar (1:1 ratio)
  • MakerDAO upgraded its system to include the DAI Savings Rate in which DAI holders can lock their DAI holdings into the MakerDAO’s Oasis app to earn interest.
  • When a user decides to deposit DAI stablecoins into the Vault and withdraw the collateral, he is also required to pay an interest, or stability fee, to the network.

CryptoCurrency Profile

  • Token Standard - ERC-20
  • DAI Price - $1,01 USD
  • DAI ROI - 1,04%
  • Market Rank - #24
  • Market Cap - $940 174 517 USD
  • 24 Hour Volume - $150 915 054 USD
  • Circulating Supply - 933 226 126 DAI
  • Total Supply - 933 226 152 DAI
  • All Time High - $1,14 USD (Sep 18, 2020)
  • All Time Low - $0,945505 USD (May 10, 2020)

About Project

MakerDAO is a smart contract platform based on the Ethereum blockchain. The task of the project, built on the principle of the Decentralized Autonomous Organization (DAO), is to create stability in the world of decentralized things. This stability is implemented through DAI, an ERC-20 standard token, which allows it to be used in all the most popular Ethereum wallets (Metamask, Mist, MEW, etc.). Using external market mechanisms and economic incentives, the Maker platform stabilizes the DAI value at 1 USD. It allows anyone to use its Ethereum funds to create Dai on the Maker platform. Once generated, Dai can be used just like any other cryptocurrency: it can be freely transferred to other people, used as payment for goods and services, or stored as long-term savings. It is important to note that Dai generation is also building the components required for a robust decentralized margin trading platform.

By blocking a certain amount of ETH in MakerDAO smart contracts, users can create a certain amount of DAI - the more ETH is blocked, the more DAI can be created. When users are ready to unlock their ETH, which serves as collateral for their DAI loan, they simply repay the loan.

DAI stablecoin

DAI price is kept in check through a system of smart contracts automatically executing themselves. If the price of DAI fluctuates too far from one dollar, Maker (MKR) tokens are burned or created in order to stabilize the price of DAI. MakerDAO’s algorithms automatically manage the price of DAI so no one person needs to be trusted to keep the currency steady. If the system works as intended and one DAI equals one US dollar, MKR holders benefit because the total supply of MKR decreases–making MKR more rare and valuable. 

  • To date, DAI has remained stable for years with only minor fluctuations from its one dollar price peg.
  • DAI functions as a building block can be incorporated into any dapp needing a stable asset or payment system. 

Recent News

  • 27 Jul 2020: Dai supply approaches $300 million as value locked in Maker breaches $1 billion;
  • Sep 2020: A series of increases in the Dai debt ceiling, as the amount of Dai generated, continues to climb closer to a major milestone of 1 billion;
  • 20 Oct 2020: Introduced the Redesigned, Easier-to-Use Maker Voting Portal.


After years of partnering and planning, coding and community building, scientific governing, and ecosystem onboarding, the Maker Foundation is prepared to initiate the late-stage tasks required to launch Multi-Collateral Dai (MCD) on Mainnet. The ultimate decision to activate Multi-Collateral Dai will be made by MKR voters. 

To that end, what follows is an overview of critical milestones that are aimed to be achieved before MCD goes live.

Decentralized governance & community engagement

  • The Maker Foundation will work with the governance community to plan the work to come and to thoroughly understand how the process should be managed and debated. The Foundation will solicit feedback and work to refine and optimize its processes.
  • Publication of the Collateral Onboarding Guide and Application Form. This set of documents will be depending on MKR voter approval, provide the community and collateral partners with the information they need to introduce new asset types into the governance process for review and analysis.
  • Conduct a Governance Poll to determine which tokens from the shortlist the MKR Token Holders want to have the Interim Risk Team evaluate first. Depending on the level of debate and analysis generated by the community, MCD may launch with all of the assets from the shortlist or with a prioritized subset.
  • The Maker Foundation Interim Risk Team will release a Risk Framework document. This paper will contain information, guidelines, and models for external Risk Teams to utilize when evaluating risk in the ecosystem.
  • A Governance Poll will occur to formally accept or reject the Risk Framework followed by another to formally accept or reject the current Interim Risk Team’s mandate and to signal the voters’ support for its continued operation. The details of this poll will be discussed closer to launch.
  • Evaluation of the collateral types, as prioritized by the community, will begin with discussions around the qualitative and quantitative models provided by the Interim Risk Team. The Maker voting community may choose to ratify each collateral type individually, all at once, or choose to divide them into ‘risk category’ buckets for staged integration.
  • The process will culminate with an Executive Vote by MKR holders to formally ratify the work of the Governance and Risk process before launch. This will officially set the list of voter-approved assets and their initial Debt Ceilings for MCD.

User Experience

  • Clarifying system-related terms and rebranding to make the system easier to understand.
  • Design of the new multi-collateral CDP portal.
  • Governance platform performance and UX improvements.
  • Complete redesign of the Maker website, our social channels, and product portals.
  • Design of the migration app facilitating Dai and CDP upgrades to MCD.


MakerDAO has become one of the noticed projects of the DeFi movement thanks to a series of high-profile partnerships that's helped drive adoption. However, like many other projects in this field, it is exposed to the effects of huge global events. This means that the system can become unstable. But like much of the industry, it's still early days, and the challenges MakerDAO, if it can overcome them, will only make it stronger.

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