Hey Guys..!!
Meet again with me Wahyu Nahrul
We have entered the latest week, which is the 5th week of Steemit Crypto Academy, to start this week's homework I will work on the homework given by one of our professors @yohan2on.

The assignment for this week is to write an article that will explain one of the 3 stable coins given by professor @yohan2on. I will choose the DAI coin as the object of the StableCoin discussion in my article.

But before I explain about DAI, I will first explain what StableCoin is.

What Is StableCoin?

As the name suggests, StableCoin is a coin that has a price that tends to be stable and doesn't have many chances. The purpose of making StableCoin is to provide a solution for crypto-asset owners that we know that Cryptocurrency has a high fluctuation rate, which means that Cryptocurrency prices can very easily experience significant increases and decreases in a very short time. Because of this, many crypto-asset owners complain that the value of their crypto assets has decreased very quickly.

Finally, a cryptocurrency that has a price that tends to be stable and can be used to store/tie the price of our crypto assets at a certain price can provide a sense of security for Cryptocurrency depositors.

Usually, the price of StableCoin refers to assets that exist in the real world such as gold, silver, etc. However, there are also many StableCoin that fix their prices with conventional currencies such as the US dollar.

What Is DAI?

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If you have taken the class from professor @yohan2on from week 4, I'm sure you are familiar with the DAI token, even though you know very little about it but it's already good.

DAI is a StableCoin, As I explained above that StableCoin is a coin that has a stable price with a benchmark price according to the currency or the price of certain goods in the real world such as gold, silver, etc. DAI tokens take the US dollar as the benchmark price, so the price of DAI coins is made as close as possible to the price of US dollars so that the ratio of DAI prices to US dollars is 1:1.

What Is The Specialty Of DAI?

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The specialty of DAI is its very stable price. As I explained above, the price of 1 DAI is made to be always close to the price of 1 US dollar. For nearly 3 years, the price of DAI has remained stable at USD 1 and has only experienced relatively small decreases and increases. This happened because DAI was assisted by his younger brother, the MKR token, which is a token made specifically to always stabilize the price of DAI.

Then the advantage of this token made by MakerDAO is that all the systems run automatically so that no third party has to keep the price of DAI stable and this also makes users very flexible in their DAI lending and borrowing transactions. As long as users own ETH assets, they can freely exchange their ETH with DAI without the need for permission from other parties.

How Does DAI Work?

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The way DAI works is very simple. If someone wants to have/borrow DAI, he can exchange it using ETH as collateral, then he will be given a DAI Token with the same amount as the guaranteed ETH, then the ETH will enter into the Collateralized Debt Position or often called (CDP).

After that person has obtained DAI, he/she is free to use the DAI asset for any purpose. He can only keep his DAI token so he can get the interest from the DAI storage or he can use it as a transaction tool.

Then, if the borrower wants to take the ETH that he has loaned back, he only needs to exchange his DAI with an additional interest called the stability fee. This Stability Fee is a guaranteed interest in stabilizing the DAI that has been loaned to the borrower so that the ETH money borrowed can return intact or increase if he gets the interest when depositing DAI.

Where Can I Borrow DAI?

There are several ways that we can have DAI tokens, but this time I will show you a simple way so that we can easily own this token.

The trick is that you just have to create a wallet on the MetaMask application, you can see the installation steps in my post last week (you can see it here).

After finishing installing MetaMask and creating a wallet, the next step is that you just need to enter your ETH assets into your MetaMask wallet, I've explained how to deposit and purchase ETH in my post the previous week.

After your wallet has been filled with ETH, the next step is for you to just click on the "Swap" feature on the main page of your wallet.

Enter the amount of ETH that you want to exchange, and look for the DAI token in the search field below.

Click "Review Swap" to see how much DAI we get when we exchange it for our ETH. Here I give an example of exchanging 1 ETH for DAI.

Wait for the review process to complete.

After the process is complete, you will be shown how much. In my example this is shown if we exchange 1 ETH for DAI then we will get 1808.1078 DAI.

After that, all you have to do is click the "Swap" button to complete the swap process.

Because I don't have ETH assets, the "Swap" button below is inactive and I can't swap between ETH and DAI.

Last Word

That's my explanation about DAI tokens and how to borrow DAI tokens on the MetaMask wallet. If you like to transact using ERC-20 tokens like this DAI, then I highly recommend that you try to borrow DAI token.

I apologize if there are still many mistakes that you can get when reading my explanation earlier, I would be very grateful if you told me in the comments column below.

Thank you for reading my blog, hope it will be useful for all of you. 😁

CC:

@yohan2on
@steemitblog
@steemcurator01
@steemcurator02