Is DAI 100% backed?

Dai (DAI) is a pioneering decentralized stablecoin that operates seamlessly on the Ethereum blockchain. Its primary objective is to maintain a stable value equivalent to $1.00 USD, offering users a reliable digital asset amidst market volatility.

Distinct from traditional centralized stablecoins, Dai does not rely on being backed by US dollars held in a bank account. This decentralized approach sets it apart, eliminating the need for intermediaries and promoting greater autonomy and transparency.

The stability of Dai is achieved through an innovative mechanism involving the Maker platform. On this platform, users can lock up collateral, such as Ether (ETH), to generate Dai. This collateral serves as a safety net, ensuring that the value of Dai remains anchored to $1.00 USD.

The Maker platform's smart contract system dynamically adjusts the amount of collateral required to generate Dai based on market conditions. This adaptive mechanism helps maintain Dai's stability, even in the face of market fluctuations.

BTCC, a leading cryptocurrency exchange, offers a comprehensive suite of services that includes support for Dai trading. Users can seamlessly buy, sell, and trade Dai on BTCC's platform, along with a range of other digital assets. Additionally, BTCC provides wallet services for safe and secure storage of Dai and other cryptocurrencies.