_{DAI Logo Source}

What is DAI

DAI is a product of MakerDAO founded by Rune Christensen. It is an ERC-20 token on the ETH blockchain that has a steady value of one US dollar.

DAI is used in the MakerDAO lending system. It is created whenever a loan is taken out on the platform. It’s the currency that MakerDAO users borrow and payback.

It functions simply as a stable Ethereum token that can be used for payments and can be easily transferred between ETH wallets.

_{Oasis App Source}

DAI is a stablecoin that has a price that is being kept in check by self-executing smart contracts. The making and burning of Maker tokens are used to stabilize its price if it gets too far from 1 USD. This is automatically managed by algorithms.

So far, the price of DAI has been stable for over 3 years with some minor fluctuations only.

Getting DAI

_{Oasis App Source}

The most direct way to get the stablecoin DAI is thru taking out loans on the Oasis platform made by MakerDAO. There's also a way to buy DAI on that platform.

DAI can be bought in over 100 countries, which includes Europe, the USA, and parts of Latin America. They are currently partnered with 3rd party providers that facilitate the purchases of Dai using debit cards, credit cards, or even bank transfers.

For set limits and fees, check out Oasis Support for more information.

_{Coinbase x DAI Source}

DAI can also be traded on that Oasis or you can use a centralized exchange like Coinbase. You can also check other exchanges by going to coinmarketcap or coingecko:

_{List of trading pairs for DAI Source}

DAI Usage

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The best use of stablecoins like DAI is to hedge (counterweight) against the cryptocurrency market's volatility. Since it has been designed to be stable in value, it's a good store of value for traders who thinks the market will be bearish.

Spending cryptocurrencies on purchase is best done with a stable cryptocurrency. DAI can be used by converting it to fiat on a Visa card like the Coinbase Card as well as a Monolith Visa debit card. It's very useful for people who are wanting to spend cryptocrurrency with less volatility.

Gracias!

Thanks to @yohan2on for this homework task. Shoutout to @steemitblog, @steemcurator02, and @steemcurator01 for this chance too.

I have enjoyed this learning experience, I'm already looking forward to @yohan2on's and all the professor's future tasks.