DAI is a cryptocurrency that is pegged to the US dollar and is designed to be stable, unlike other cryptocurrencies that are highly volatile. DAI was created by the MakerDAO project, a decentralized autonomous organization (DAO) that aims to provide financial stability and transparency through blockchain technology. In this article, we will delve into the history, founders, and current events of DAI.
History of DAI
The MakerDAO project was founded in 2015 by Rune Christensen, who had the vision of creating a stablecoin that would be backed by collateral and governed by a decentralized community. The project initially started as a smart contract platform for issuing loans, but it soon evolved into a more sophisticated platform for creating stablecoins.
The first stablecoin created by MakerDAO was called “Sai,” which was later replaced by DAI in December 2017. DAI was created as a decentralized stablecoin that is backed by collateral, making it immune to the volatility that plagues other cryptocurrencies. DAI is designed to maintain a stable value of one US dollar, regardless of market conditions.
The MakerDAO platform uses a unique system of collateralized debt positions (CDPs) to create and manage DAI. CDPs are smart contracts that allow users to deposit collateral, such as ether (ETH), into a pool in exchange for DAI. The collateral is held in escrow until the user repays their debt and retrieves their collateral.
DAI can be used in any wallet that supports the ERC-20 token standard, such as MyEtherWallet or MetaMask. The MakerDAO project also offers a dedicated DAI browser, which is called Oasis. Oasis is a decentralized exchange (DEX) that allows users to trade DAI and other tokens without the need for a centralized exchange.
Oasis is built on the Ethereum blockchain, which means that it benefits from the security and transparency of the blockchain. Oasis is also a non-custodial platform, which means that users have complete control over their funds and can trade without the need for a centralized intermediary.
Founders of MakerDAO
Rune Christensen is the founder and CEO of MakerDAO. He is a Danish entrepreneur who has been involved in the cryptocurrency industry since 2011. Christensen has been recognized for his work in creating a stablecoin that is decentralized and transparent.
Other notable members of the MakerDAO team include Andy Milenius, who is the CTO of MakerDAO, and Mariano Conti, who is the Head of Smart Contracts at MakerDAO.
DAI has continued to grow in popularity and adoption since its launch in 2017. The stablecoin has been integrated into several major platforms, including Coinbase, Binance, and Bitfinex. The integration of DAI into these platforms has increased its accessibility and visibility, making it easier for users to buy, sell, and trade the stablecoin.
One of the most significant events in the history of MakerDAO occurred in March 2020, when the price of ether (ETH) crashed, leading to a significant drop in the value of DAI. The crash triggered a “black swan event” in the MakerDAO system, which resulted in a loss of collateral and a drop in the value of DAI.
To prevent such events from happening in the future, MakerDAO implemented a series of upgrades to its system, including the introduction of the DAI Savings Rate (DSR) and the Stability Fee. The DSR is a mechanism that allows users to earn interest on their DAI holdings, while the Stability Fee is a mechanism that adjusts the interest rate on CDPs to maintain the stability of DAI.