potential marketIn decentralized applications, price-stable cryptocurrencies are an important medium of exchange. As a stable currency, Dai’s potential market is not limited to the decentralized blockchain industry, but also covers many other industries. Listed below are some of Dai’s current market applications:
Working capital, hedging and leveraged trading
The Maker Vault allows users to conduct permission-free transactions, and users can generate Dai as working capital through the vault guarantee. So far, tens of thousands of vault owners have used ETH as collateral to generate Dai, and then used Dai to purchase ETH, thus achieving fully guaranteed leverage transactions.
Commercial receipts, cross-border transactions and remittances: Dai can reduce the volatility of foreign exchange and eliminate the need for intermediaries, which means the cost of cross-border transactions will be significantly reduced. This is a great advantage for businesses and individuals, especially today as global transactions become increasingly frequent.
Charities and NGOs: With the help of transparent distributed ledger technology, charities and NGOs can manage and distribute funds more efficiently, reducing the risk of corruption and unaccounted money flows.
gaming industry
Dai is an ideal currency choice for blockchain game developers. By integrating Dai, game developers not only get a currency, but an entire economic system. The composability of Dai allows developers to build new player behavior mechanisms based on decentralized finance.
Prediction Markets: In prediction markets, using more volatile cryptocurrencies increases the risk of betting. Dai, as a stablecoin, reduces this risk, allowing punters to focus more on the event itself rather than the price fluctuations of the currency.
Asset expansion: MKR holders can add new assets to the collateral category, which will be subject to Dai’s risk requirements, parameters, and security measures (such as liquidation rates, stability fees, deposit rates, and debt ceilings, etc.). This not only increases Dai’s stability but also expands its application scope.
Develop information input mechanisms
MakerDAO is the first reliable information input mechanism project on the Ethereum blockchain. Many decentralized applications use the MakerDAO price feed mechanism to ensure the security of the system and continuously provide the latest price data. Through the guarantees provided by MakerDAO and the Maker Protocol, Maker governance can broaden the core information input mechanism infrastructure to better adapt to the needs of decentralized applications.
Summarize
The Maker Protocol allows users to generate Dai, a price-stable store of value that exists entirely on the blockchain. Dai is a decentralized stablecoin that is not issued or managed by any centralized participants or intermediaries and counterparties that pose trust risks. It is non-discriminatory, regardless of national boundaries and available to anyone.
All Dai is generated through over-collateralization, and the collateral is escrowd into audited and publicly visible Ethereum smart contracts. Anyone with an Internet connection can monitor the health of their systems at daistats.com at any time.
With hundreds of partners and one of the strongest developer communities in the cryptocurrency space, MakerDAO has become the engine of the decentralized finance (DeFi) movement. Maker is unleashing the power of blockchain to realize contemporary expectations for economic empowerment.