Cryptocurrency Q&A
Is DAI always exactly $1 USD?
Is DAI always exactly $1 USD?
lucas_clark_artist
Thu May 16 2024
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7 answers
2055
I'm curious, could you please clarify for me? Is DAI really pegged to the US dollar at a one-to-one ratio? I've heard rumors about its stability, but I'm still a bit skeptical. Could you elaborate on how DAI maintains this parity with the US dollar? Is there a mechanism or system that ensures its value doesn't deviate? Also, has there been any historical instances where DAI's value has significantly fluctuated from the $1 USD mark? I'd appreciate your insights on this matter.
7 answers
CharmedSun
Sat May 18 2024
While DAI strives to maintain a stable value, it is not a hard-pegged stablecoin, meaning its price can still fluctuate within a certain range.
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SamuraiWarrior
Sat May 18 2024
DAI, a cryptocurrency, does not always maintain a fixed value equivalent to 1 USD. Its value can deviate slightly due to various market factors.
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Nicola
Sat May 18 2024
The stability of DAI is achieved through a free-floating peg mechanism, which aims to keep its price close to the US dollar without being rigidly fixed.
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Maria
Sat May 18 2024
This flexibility allows DAI to respond to market fluctuations and maintain a relatively low volatility compared to other cryptocurrencies.
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Claudio
Fri May 17 2024
This approach ensures that DAI remains attractive to users seeking a relatively stable crypto asset while still benefiting from the liquidity and efficiency of the cryptocurrency market.
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