DaiDAI

Dai (DAI) is a US-dollar-pegged decentralised stablecoin issued by the Sky protocol (formerly MakerDAO), live since 2017. It is generated by depositing crypto collateral — and increasingly tokenised real-world assets — into Sky vaults and minting DAI against it at overcollateralised ratios. The peg is maintained by collateral, stability fees and the Peg Stability Module that swaps DAI for other stablecoins at par. With the 2024 Endgame upgrade, DAI now coexists with the new USDS stablecoin and can be converted 1:1 to it. Like all stablecoins, peg risk, smart-contract risk and protocol-governance risk apply — understand the system before holding large balances.