Dai is collateral-backed money whose value is pegged to the US Dollar and kept stable through a framework of aligned financial incentives. The Dai token lives on the Ethereum blockchain; its stability is unmediated by any central party, and its solvency does not rely on any trusted counterparties. All circulating Dai are generated from Maker Vaults and are backed by a surplus of collateral assets. Dai is used in the same manner as any other cryptocurrency: It can be freely sent to others, used as payments for goods and services, be held as a hedge against market volatility, etc.
