Steemit Crypto Academy - Week 6 - Homework Post for @yohan2on

Hello Steemians,
Welcome to Steem Crypto Academy Week 6.

I will be talking about the task: Stable coins (DAI)

In recent years, there has been a strong trend in the cryptocurrency industry for stablecoins pegged to the exchange rate of a particular national currency. Therefore, the price of stablecoins does not experience volatility and can guarantee its holder 100% stability. One of these is DAI (DAI), which within four years has reached a billion-dollar capitalization and is developing at a rapid pace further.

What is DAI (DAI)?

DAI is a crypto-monetary value attached to the dollar value (US dollar). It can easily be used as a means of payment or storage of capital without the risk of falling prices. This price stability is ensured by a tight peg to the US dollar with a possible correction within 1%

Work on the DAI release began back in January 2016. Then the head of the crypto project MakerDAO Runa Christensen, created a team of 5 people, which eventually increased to 33. The first DAI was released on December 18, 2017, and its price was $ 0.91. Like other stablecoins themselves, DAI was intended to solve the serious problems of cryptocurrency volatility and the formation of a stable currency.

DAI advantages

• DAI tokens are liquidated and created by the network users themselves (unlike Tether, which stores fiat in bank accounts and receives dividends for this)
• DAI rate stability (plus or minus permissible 0.5-1%)
• Unconditional decentralization achieved through the use of smart contracts

Dai disadvantages

• The complexity of the interface and the principle of operation. Users need to test the Maker exchange, deal with the creation of collateral positions and the issue of DAI, as well as their return, which actually scares off ordinary crypto investors.
• Based on the Ethereum blockchain, which means there are risks of DAI's dependence on the state of the ETH network and its security.
• Strong competition in the stablecoin market. Projects such as Tether or USD Coin are more accessible to the average investor.

Where to buy and store DAI?

The stablecoin DAI is supported by many decentralized exchanges including Uniswap, Compound, and Curve. DAI can also be found on the Binance spot exchange, where the stablecoin trading volume is $ 5 million.

Since DAI is deployed on the Ethereum blockchain and is an ERC-20 token, stablecoins can be stored on ETH wallets. The most popular wallets are MyEtherWallet, Trust, ImToken, or Cipher.

Conclusion

DAI is in many ways more honest and more transparent than any other stablecoin, which brings any price speculation to zero. If you are looking for an option to save capital and do not want to put up with the volatility of cryptocurrencies, then DAI is an excellent choice.

Thanks for reading my post.
Special thanks to Prof @yohan2on for this week lecture.

Cc: @yohan2on
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