Dai

Dai is a type of digital currency called a stablecoin, meaning its value is designed to stay close to one US dollar. It operates on the Ethereum blockchain through smart contracts, which are automated agreements. Unlike traditional currencies, Dai isn't issued by a central bank; instead, it's backed by other cryptocurrencies stored in a digital wallet. When you lock these cryptocurrencies as collateral, you can generate Dai. If the value of your collateral drops too much, the system automatically adjusts to maintain stability. Dai provides a reliable, decentralized way to transfer and store value within the cryptocurrency ecosystem.