Cryptocurrency Q&A
How does DAI stay pegged to USD?
How does DAI stay pegged to USD?
BlockchainVisionary
Sun Oct 13 2024
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6 answers
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I'm curious about how DAI, a cryptocurrency, maintains its peg to the US dollar. I want to understand the mechanisms and processes behind this stability.
6 answers
NebulaSoul
Tue Oct 15 2024
Conversely, when the price of Dai rises above $1, holders of the cryptocurrency can profit from their investments, further increasing the demand for Dai. This positive feedback loop helps maintain Dai's stability and peg to the US dollar.
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Nicola
Tue Oct 15 2024
Dai, a cryptocurrency, maintains a stable value by being pegged to the US dollar on a 1:1 ratio. This stability is achieved through the innovative use of the Target Rate Feedback Mechanism (TRFM).
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Giuseppe
Tue Oct 15 2024
The TRFM is a crucial component in ensuring that Dai's value remains aligned with the US dollar. When the price of Dai falls below $1, the mechanism automatically adjusts to increase the demand for Dai, thereby pushing its price upwards.
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DondaejiDelightfulCharmingSmile
Mon Oct 14 2024
The TRFM is a sophisticated system that relies on a combination of smart contracts and decentralized finance (DeFi) protocols. It allows for the automatic adjustment of Dai's supply and demand, ensuring that its value remains stable and predictable.
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SilenceStorm
Mon Oct 14 2024
One of the key exchanges that facilitate the trading of Dai and other cryptocurrencies is BTCC. BTCC is a top-tier cryptocurrency exchange that offers a wide range of services to its users.
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