In 2017, DAI was officially launched on the Maker agreement. DAI aims to provide stable and safe loan assets for enterprises and individuals, and can achieve all these goals without sacrificing decentralization. Since the Maker protocol was started and run, the Maker Foundation has given all permissions on the platform to MakerDAO, which is a decentralized autonomous organization and now manages the entire Maker protocol. The following are the advantages and use cases of DAI stable currency.
No account minimum
Many individuals lack the minimum amount of assets required to open a bank account, but there is no minimum balance requirement when using DAI.
DAI can provide another stable monetary and financial inclusive means for citizens living in areas with severe economic instability.
Because DAI is a transparent and unauthorized system, it helps to ensure that users have greater unrestricted access to their own wealth. In contrast, it is well known that some governments, such as Zimbabwe and Myanmar, limit citizens' ability to withdraw money by setting daily or monthly withdrawal ceilings on their bank accounts. In 2019, Zimbabwe stipulated a weekly withdrawal limit as low as Zimbabwe Dollars (ZWD). Similarly, in 2021, the Myanmar government will set a daily withdrawal limit of 500000 Kyat.
Through the DAI savings interest rate system, users use DAI tokens to generate income through locking and interest. As DAI is built on the Ethereum blockchain, it makes use of the network's own consensus mechanism, and it does not have its own pledge mechanism. However, the MakerDAO system enables the owner of the DAI token to earn a return by depositing the DAI into the MakerDAO smart contract. This special smart contract system protects the user's investment. There is no minimum limit and it can be withdrawn at any time.
Fast and cheap
In many cases, the cost of international wire transfers may be prohibitively high, and the time required to complete a transfer may be very long. Due to the nominal transfer cost and fast processing time of DAI, the global transaction from one user's wallet to another becomes more transparent and efficient.
Traditional financial institutions only operate during "business" hours. Therefore, transactions conducted through such institutions may last for several days until the banking institutions open for business and the transfer is actually completed. However, through DAI and Ethereum, the transaction can be completed in a few minutes at any time on any day of the year.
As we all know, the MakerDAO system will conduct extensive audit and research to help ensure the strong security of the platform. Through mathematical analysis, developers formally verify all smart contracts and underlying protocol mechanisms that constitute the internal structure of the system. That is, before using any DeFi solution, you must do your own research (DYOR) and understand the risks.
Several examples of the advantages and benefits of DAI are given above. DAI is a new cryptocurrency - stable currency. The power of stable currencies, as you may have guessed from their names, lies in their ability to provide a stable store of value in volatile markets. Maintaining price stability is usually solved by using large centralized entities - however, the Maker protocol runs DAI in a completely decentralized manner, and even leaves the governance of the protocol to the distributed user network that makes up the MakerDAO.