DAI

DAI Stablecoin. What Is DAI and How to Use It

DAI is a decentralized stablecoin pegged to the U.S. Dollar and governed by the MakerDAO community. Unlike most stablecoins backed by banks, DAI is backed by crypto collateral and managed through smart contracts. This makes it one of the most innovative and censorship-resistant stablecoins in the world.

With Oobit, you can use DAI instantly to pay anywhere Visa is accepted worldwide.

What is DAI?

DAI was launched in 2017 by MakerDAO as the first major decentralized stablecoin. Instead of being issued by a centralized company, DAI is created when users lock crypto assets such as Ethereum into MakerDAO vaults. The system uses overcollateralization to keep DAI stable at 1:1 with the U.S. Dollar.

This unique design has made DAI a cornerstone of the DeFi ecosystem, powering lending, borrowing, and decentralized trading.

Why DAI is Important

DAI matters because it shows that stablecoins can exist without reliance on banks or central issuers. In places where access to traditional finance is limited or unstable, DAI provides a censorship-resistant and transparent alternative. It also plays a central role in DeFi, where it is used as collateral, liquidity, and a settlement currency.

By combining decentralization with stability, DAI demonstrates the future of trustless digital money.

How DAI Works

DAI is created when users deposit collateral such as ETH or other approved crypto into MakerDAO’s smart contracts. The system ensures that collateral always exceeds the value of issued DAI. If collateral values drop, liquidations protect the peg. Governance is handled by MKR token holders, who vote on risk parameters and collateral acceptance.

Risks of DAI

DAI carries risks different from centralized stablecoins. Collateral volatility can threaten its peg if markets move sharply. Smart contract vulnerabilities also pose risks since the system runs entirely on code. Additionally, governance decisions by MakerDAO can affect how DAI functions, making community trust essential.

DAI
DAI in Numbers
Market cap

Over 5 billion USD in 2025

Adoption
Issuer

MakerDAO (community-governed)

Regulation
Use cases
Launch year
2017
Peg
1 DAI equals 1 USD
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DAI

 FAQ

What is DAI?
How does DAI keep its value stable?
Is DAI backed by banks?
Who controls DAI?
Can DAI be censored or frozen?
Where can I spend DAI?

How to Use DAI with Oobit

With Oobit, DAI is not just for DeFi — it becomes a practical payment tool. You can tap and pay in stores wherever Visa is accepted, make online purchases using Apple Pay or Google Pay, and cash in or cash out through supported rails.

👉 Download Oobit and start spending DAI instantly.

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