Ten application scenarios of | Dai

Top 10 scenarios for | Dai

Ethereum lovers

Dai, a decentralized currency issued by MakerDAO, unlocks the currency's potential by using blockchain technology. Dai is generated through the Maker protocol's over-guarantee mechanism, a soft anchor to the dollar. Dai, in short, is a digital cash that can be thought of as the more sophisticated and intelligent us dollar.

Unlike traditional fiat currencies, Dai is non-discriminatory -- available to anyone anywhere in the world -- and is not subject to the same parameters as traditional financial services (such as inefficient payment settlements and high fees). As a result, Dai has been able to become a leader in digital tokens in the growing field of decentralised finance (DeFi).

More and more people around the world are discovering the application scenarios and advantages of Dai STD. Here are the top 10 application scenarios:

1. Complete financial independence

In traditional financial systems, Banks and other financial services companies require users to provide a wealth of information, including personal data, good credit references and even minimum deposits. Because of these onerous requirements, many people around the world still do not have bank accounts, or do not have access to adequate banking services. In contrast, no matter who you are, where you are, or what your financial situation is, you can get financial services through Dai. This creates unprecedented opportunities for financial independence for all.

In Argentina, where inflation is high, the government has traditionally imposed strict controls on capital (restricting withdrawals, for example), to the detriment of those who use the dollar as a savings currency. For these residents, Dai is a solution: access is lower than the dollar and more stable than the local currency. 1 Dai is worth $1, whether in the us, Argentina or other countries and regions, and can be exchanged peer-to-peer without interference from central Banks or third parties.

Through the Maker agreement, anyone can deposit collateral in a Maker vault to generate Dai, use Dai as a means of payment, trade Dai on an Oasis or other exchange, or earn interest through the Dai deposit rate mechanism (DSR) without any restrictions.

In a speech, Mariano Conti, Maker's head of smart contracts, who now lives in Argentina, explained how Dai had changed his own financial situation and the lives of the poor in developing economies.

2. Independent currency generation

People buy Dai every day on different exchanges to do this. However, many have chosen to generate Dai through the Maker protocol. The process is simple: the user locks the overcollaterals in a smart contract in a Maker vault and generates a certain amount of Dai based on that lock ration.

Many people become Dai to do long ETH: the ETH is locked in the Maker vault to produce Dai, which is then used to buy ETH; Hope ETH adds value. Other business owners with money in the cryptographic currency area have created Dai as a working capital to hedge against the volatility of cryptographic currencies.

3. The savings

Dai holders can lock Dai into a special smart contract (DSR), earning interest on deposits. Dai deposit rates are free of fees, geographic restrictions and liquidity barriers - there is no minimum deposit requirement and users can withdraw all or part of Dai at any time.

Anyone can access the Dai deposit rate contract through Oasis Save or other dsr-integrated projects such as OKEx and Argent wallet. In addition to driving financial independence and giving users full control, DSR can completely change the paradigm of the DeFi movement.

4. Respond to all changes with the same

Stability currency Dai provides stability in the highly volatile crypto-currency world. Dai is soft anchored to the dollar and backed by an overcollateralized item locked in the vaults of various makers. Dai can help users store value when markets are volatile, making it a safe haven for cryptocurrencies.

5. Convenient, fast and low-cost remittance service

As a stable medium of exchange, Dai can be used to pay off debts, transboundary transactions and buy goods and services. Cross-border transfers through traditional financial services are expensive and time-consuming. For example, at the time of this article, bank of America charges a $45 fee for outward remittances (in U.S. dollars). If a transfer is made from western union's U.S. branch to its Argentine branch, a $9 fee will be charged for each $1,000 transferred. Because the Maker protocol is built on the blockchain, Dai allows users to make peer-to-peer transfers around the world in a matter of seconds at a fraction of the cost of traditional money transfer services (users only have to pay the ethereum network miner fee).

6. Round-the-clock service

Traditional financial services companies have established business hours, usually in accordance with the traditional business hours. That is, even if a user can do business on a day off (for example, using an ATM to deposit or withdraw money, or using a computer/mobile app to deposit and transfer money), their transaction will not be cleared until the next business day.

But Dai is a decentralized product built on a blockchain, open to users 24/7. Whether users want to generate Dai or use it to buy goods or services, they can do so on their own terms, regardless of time and place.

7. Convenient legal currency entry/exit

Users can easily convert Dai into legal currency through multiple regulated platforms. Coinbase and Coinbase Pro, for example, offer two-way exchanges between Dai and fiat, as does Wyre, a money-transfer service.

Transparency unmatched by traditional financial systems

Through the decentralized Maker protocol, users can see how Dai and DSR work from both a macro and micro perspective. Blockchain technology also has checks and balances built in, as all transactions are recorded on a public ledger visible to all. In addition, tech-savvy users can look at Maker's audited and formalized validated smart contracts to get a more granular view of how such financial technologies work. The traditional financial sector has never provided such transparency.

Ecosystem drivers and DeFi builders

The adoption rate of Dai is increasing. The Maker ecosystem is growing as more and more projects integrate Dai and/or Dai functions (e.g., DSR) and Dai is used by more and more people. Through Dai, developers can offer their platform users the ability to trade stable assets, leaving the door open for risk-averse participants. The growing community of developers and Dai users enhances the network effects of the Maker protocol, increasing awareness and overall ecosystem stability.

As a key component of the DeFi movement, stabligo Dai is a store of value, a tradable asset, a passive source of income, and an indicator of the amount of collateral in the Maker vault. The DeFi movement will continue to grow as more and more people recognize the advantages of a secure and inclusive permission-free open system.

- the Maker ecosystem includes decentralized applications developed by the community and the Maker foundation

10. Other advantages based on blockchain

Dai also provides a good service for niche users. Dai, for example, is increasingly used by blockchain players. In June 2019, Maker partnered with Axie Infinity to integrate Dai into the company's on-chain digital pet formation game. Less than a year later, the Maker foundation launched the Dai game plan in March 2020, aiming to increase Dai's global economic impact. Dai is also often used in disaster relief efforts, making it easy to provide stable funding for those in need.

The real advantage of digital cash

Cryptographic currencies and blockchain technology allow users to trade, save and conduct business in an efficient and trustless manner, without interference from third parties. All in all, the above scenario for Dai could benefit all individuals and businesses from digital currency.

If you want to learn more about the Maker protocol and Dai, you can read the latest version of the white paper.

Original address:https://mp.weixin.qq.com/s/qiQI4YABDXuz9Chc6qz_5A

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