Stablecoin DAI reached a capitalization of $1 billion on Wednesday. This marks one of the important milestones for DeFi pioneers.
Immense Breakthrough
Rune Christensen, MakerDAO creator, said that having one billion DAI in circulation is a tremendous milestone. It is a powerful validation that people all across the world desire more access, transparency, and opportunities to maximize their economic potential. The creator told CoinDesk through a representative.
The MakerDAO Foundation stated that supply had grown by $30 million at one point today, though it gave no further details.
DAI is created when Ethereum users provide one of several assets to the Maker protocol and borrow it in the form of a DAI. Stablecoin’s smart contracts set a value of $1 per DAI. This helps maintain a $1 connection, but it changes from time to time.
The Dai Stats website keeps track of all significant data concerning the MakerDAO system. The overall supply is roughly 993 million DAI as of this writing. (As of press time, DAI was slightly above its $1.01 peg, explaining the $1 billion market cap.)
Robert Leschner statement says, Dai is a pioneer in protocol-based financial products. It is reaching the 1 billion Dai milestone indicates that he is working, worthless, and an Ethereum honey badger. Leschner is the founder of DeFi Money Market Compound.
It’s worth remembering that the total value of the DeFi market, which closed in February, barely crossed $1 billion.
DAI by Number at Present
Right now, there’s $1.6 billion in DAI locked up in Compound. This is due to the fact that users deposit, borrow, and deposit again in loops. This was as previously stated (as much as collateralization rates will allow).
While the majority of DAI in circulation throughout the world is in the form of an ERC-20 token, this is by design. DAI does not enter the ERC-20 smart contract until users remove it from MakerDAO. Although, users may do so in the future if stronger token standards emerge. This is as stated by Nik Kunkel, Maker Foundation developer.
According to Kunkel, Dai is not an ERC-20 coin under the Maker system. Dai is simply dai.
Despite the fact that it now gives no return, the DAI Savings Rate (DSR) smart contract holds about a third of the total supply. According to Etherscan, the majority of dai (over 620 million) are currently in the ERC-20 smart contract.
As stated by Kunkel, DSR is part of the protocol itself, so it doesn’t have an opinion on what form dai should take.
According to DeFi Pulse, Maker has $2.3 billion in assets locked up. This makes it the second largest DeFi application on Ethereum after Uniswap.
MarkerDao’s creation was focused on enabling its consumers to locate better, less prejudiced, and transparent ways of participating in the global financial system, said Christensen.
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