Dai (DAI) is an ERC20 token that launched on the Ethereum blockchain in 2017. It was created by MakerDAO as an attempt to solve the issue of volatility. The price of a single coin can fluctuate massively within a single day; however, the price of DAI is stabilised automatically by using MakerDAO’s smart contracts and algorithms. That means no one person needs to be trusted to keep the currency steady, which takes human error and market swings out of the equation. Thus, while Dai does not perfectly track to any fiat currency, it maintains a free-floating peg that experiences low volatility against the US dollar. Unlike other stablecoins whose value is backed directly by US dollars, DAI is backed by crypto collaterals that anyone can view on the Ethereum blockchain; what’s more, the Maker Protocol allows anyone anywhere in the world to generate it.