Dai Stablecoin

DAI is primarily issued on Ethereum but is also available on multiple networks through official and community-supported bridges.

Native Deployments & Layer 2 Networks:

• Ethereum
• Optimism
• Arbitrum
• Polygon
• Base

Bridged Versions:

• BNB Chain (via official MakerDAO bridges)
• Avalanche
• Solana (via Wormhole)

MakerDAO governs the official bridges and decides which chains DAI can be officially issued on. Users can also bridge DAI using third-party bridges, but risks and liquidity vary by platform.

DAI functions as a decentralized stablecoin, with its supply managed by the Maker Protocol.

How DAI is created:

1. Users deposit collateral (e.g., ETH, wBTC, USDC) into Maker Vaults.
2. Based on the collateral type and ratio, they can mint a limited amount of DAI.
3. If the collateral value falls too much, the system liquidates the position to keep DAI fully backed.

What DAI is used for:

• Payments & transactions
• Lending & borrowing
• Staking & savings
• Collateral in DeFi

DAI is governed by MakerDAO, using the MKR token for decision-making.

Governance Process:

• MKR holders vote on changes like stability fees, collateral types, and risk parameters.
• Executive votes and polls decide upgrades to Maker Protocol.
• Core units handle development, risk management, and operations.
• Governance ensures decentralized control over the protocol’s stability mechanisms.