December 18, 2017

MakerDAO launches DAI stablecoin

MakerDAO launched the DAI stablecoinA cryptocurrency pegged to fiat currency — intended to reduce volatility for payments and DeFi. on December 18, 2017 — a dollar-pegged asset backed by overcollateralized ether locked in smart contractPrograms on a blockchain that run automatically when conditions are met — used in DeFi and NFTs.s.

What it was for

MakerDAOUsers deposited ETH into Maker vaults and minted DAI against it — no bank account required. DAI became DeFiDecentralized finance — lending, trading, and derivatives on blockchains without traditional banks.'s unit of account for lending, trading, and payroll before centralized stablecoins dominated volume. It showed algorithmic collateral could hold a peg — until black swans tested the design.

Why it's here

DAI was the first widely used decentralized stablecoinA cryptocurrency pegged to fiat currency — intended to reduce volatility for payments and DeFi. on Ethereum.

Why it mattered

It gave DeFiDecentralized finance — lending, trading, and derivatives on blockchains without traditional banks. protocols a trust-minimized dollar substitute.

What it solved

Traders needed stable value on-chain without off-ramping to banks for every trade.

Media

  • MakerDAO
    ImageMakerDAO

    GitR0n1n, Public domain, via Wikimedia Commons

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