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What is Dai ($DAI)?
What is Dai ($DAI)?

Learn what Dai is, and how to buy/swap it in Best Wallet.

Updated over a week ago

Dai ($DAI) is a type of cryptocurrency known as a decentralised stablecoin, meaning its value is tethered to the value of the US dollar but without the reliance on centralised reserves and backing from actual US dollars. For this reason, Dai differs from other stablecoins like Tether ($USDT) or USD Coin ($USDC) as it can be considered more decentralised.

It operates on all three supported networks in Best Wallet - Ethereum, Polygon, and BNB Smart Chain - and maintains its price stability via smart contracts, avoiding the control of any centralised entity.

How does Dai work?

Powered by the MakerDAO protocol, DAI achieves its stability through an innovative system of collateralisation and algorithmic governance.

Users lock up collateral, typically other cryptocurrencies, to generate $DAI tokens through smart contracts. These collateralised assets serve as a buffer, ensuring the stablecoin’s value remains pegged to the US dollar.

Why Invest in Dai?

There are many reasons hundreds of thousands of crypto users own and trade Dai ($DAI).

  • Risk Mitigation: Holding Dai is ideal for those cautious of crypto's price swings, providing a stable medium of exchange.

  • DeFi Integration: Dai has been an important cornerstone in the Decentralised Finance (DeFi) world, driving adoption and demand across decentralised applications.

  • Portfolio Diversification: Owning Dai can counterbalance a diverse crypto portfolio, reducing overall risk and offering price stability and opportunities for quick swaps.

  • Inflation Hedge: Offers a safeguard against fiat currency devaluation, maintaining purchasing power amid economic shifts. Even if your local currency devalues, owning crypto-collateralised Dai can help maintain your funds.

Can I buy Dai in Best Wallet?

Acquiring Dai tokens ($DAI) is now more accessible than ever with Best Wallet’s seamless integration of Onramper. You can purchase $DAI directly within the Best Wallet app, ensuring convenience and accessibility. Onramper ensures you get the lowest fees and best exchange rates for your preferred buying method, which includes Apple and Google Pay, debit or credit cards, bank transfers, and more.

Can I swap $DAI in Best Wallet?

Swapping your $DAI for another cryptocurrency is quick, cheap, and straightforward in Best Wallet. Go to the Swap feature to exchange your Dai tokens for hundreds of other major cryptocurrencies.

To conclude

Dai ($DAI) provides a solution to the volatility problem in the cryptocurrency market, offering a stablecoin that is decentralised, transparent, and accessible worldwide.

Best Wallet makes it even more accessible, offering users a dependable and stable value in the dynamic cryptocurrency market.

As the DeFi movement continues to evolve, Dai's significance is expected to grow, serving as a fundamental building block for a more stable and inclusive financial system.

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