Crypto Academy Week 6 Homework Post for @yohan2on - Stable Coins (DAI)
This week, Crypto Academy has entered its 6th week. The writers in this community are getting more and more active lately. This week several professors have raised interesting topics to discuss. In this post I will make homework given by professor @yohan2on, the topic this time is "Stable Coins". I will try to provide an overview of one of the stable coins, DAI.
Stable coins was made a changes with good progress to the world of cryptocurrency, one of which is the DAI token. Stable coins are a solution to solve the problem of volatility prices of various cryptocurrencies. The DAI token is one of the stable coins that has succeeded in attracting traders in the market. DAI is a token created by MakerDAO and Maker (MKR) protocol to stabilize MKR prices and support decentralized finance (DeFi) which continues to grow. The DAI token also uses a smart contract. Because it functions like money, the price of DAI is also equivalent to the price of USD, a ratio of 1: 1 (1 DAI = 1 USD). USD is an international currency that has a very strong value and has a very low risk of inflation, so it is very suitable to be used as a benchmark and DAI has done it.
Protocol maker is one of the Dapps based on the Ethereum blockchain and is the first DeFi application on the Ethereum blockchain. DAI is a decentralized cryptocurrency that is used for the borrowing process in the Maker protocol. DAI is also the most used stable coin on DeFi. Users can obtain DAI by depositing amount of assets which serve as collateral in the Maker protocol. To redeem this guarantee, you must re-deposit the amount of DAI that you have borrowed and pay a loan fee. DAI tokens can also be obtained by purchasing them on various market exchanges out there. Apart from being used in the lending process in the Maker protocol, DAI token can also be traded like any other cryptocurrency on various market exchanges. DAI token can also be used as savings, especially for people who live in countries with high inflation. That way, you will avoid losses due to inflation.
Hi @torressteem
Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.
Feedback
Fairly done. More effort was needed in your research work. Make your work more organised and appealing to the readers by always paragraphing your work. You used huge paragraphs which are very discouraging to read.
Homework task
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