How to Earn Dai (DAI): A Comprehensive Guide for the UK

Introduction

Lending Dai can be an excellent option for those who wish to hold DAI while earning a yield. The steps may seem a bit daunting, particularly the first time you undertake them. That's why we've compiled this guide for you.

Step-by-Step Guide

1. Obtain Dai (DAI) Tokens
To lend Dai, you need to possess it. To obtain Dai, you'll need to purchase it. You can choose from these popular exchanges in the UK.
Platform Coin Price
Uphold Dai (DAI) 1
BingX Dai (DAI) 1
View all 26 prices
2. Choose a Dai Lender in the UK
Once you have DAI, you'll need to choose a Dai lending platform to lend your tokens. You can see some options here.
Platform Coin AER
Nexo Dai (DAI) Up to 14% AER
Aave Dai (DAI) Up to 11.64% AER
AQRU Dai (DAI) Up to 6% AER
Bitget Dai (DAI) Up to 5% AER
Blockchain.com Dai (DAI) Up to 3.75% AER
View all 22 loan rates
3. Earn Dai
Once you've selected a platform to earn your Dai, transfer your Dai into your wallet on the earning platform. Once it's deposited, it will begin to accrue AER. Some platforms pay interest daily, while others do so weekly or monthly.
4. Earn AER
Now all you need to do is sit back while your cryptocurrency earns AER. The more you deposit, the more interest you can earn. Ensure that your earning platform pays compounding interest to maximise your returns.

Platform	Coin	Price
Uphold	Dai (DAI)	1
BingX	Dai (DAI)	1

Platform	Coin	AER
Nexo	Dai (DAI)	Up to 14% AER
Aave	Dai (DAI)	Up to 11.64% AER
AQRU	Dai (DAI)	Up to 6% AER
Bitget	Dai (DAI)	Up to 5% AER
Blockchain.com	Dai (DAI)	Up to 3.75% AER

What to Be Aware Of

Lending your cryptocurrency can be risky. Ensure you conduct thorough research before depositing your crypto. Do not lend more than you are prepared to lose. Review their lending practices, customer feedback, and the measures they take to secure your cryptocurrency.

Latest Movements in the UK

Dai (DAI) is currently priced at US$16 with a 24-hour trading volume of US$147.11M. The market cap of Dai stands at US$3.41B, with 3.41B DAI in circulation. For those looking to buy or trade Dai, Nexo offers avenues to do so securely and efficiently

Market capitalisation: US$3.41B
24-hour volume: US$147.11M
Circulating supply: 3.41B DAI

See the latest information

Frequently Asked Questions About Lending Dai (DAI) in the UK

What is Dai and how does it differ from other cryptocurrencies?: Dai is a decentralized stablecoin built on the Ethereum blockchain. Unlike most cryptocurrencies that freely fluctuate, Dai is designed to maintain a stable value close to 1 USD. It achieves this through over-collateralized debt positions (CDPs) and a system of smart contracts managed by the MakerDAO ecosystem. Users lock up assets like ETH as collateral to generate Dai, and a combination of liquidation mechanisms and governance parameters helps keep its price stable. This stability makes Dai suitable for everyday transactions, remittances, and as a reliable unit of account within DeFi applications.
How is Dai stable, and what backs its value?: Dai stability is maintained by over-collateralization: users lock up collateral assets (primarily ETH) to borrow Dai. If the value of the collateral falls below a maintained ratio, the system can liquidate a portion of the collateral to cover the debt. The Dai debt ceiling, stability fees, and the Target Price are governed by MakerDAO’s decentralized governance. In practice, market participants can arbitrage deviations from roughly $1 by borrowing or repaying Dai, which helps keep the price anchored. This model relies on collateral markets, liquidation mechanisms, and active governance to respond to volatility.
How can I obtain and use Dai in DeFi and daily transactions?: Dai can be obtained on most major cryptocurrency exchanges by trading other assets for Dai, or by minting it through MakerDAO by locking up collateral in a vault. Once you have Dai, you can use it across DeFi protocols for lending, borrowing, or liquidity provision, and you can spend it through DeFi-enabled wallets and payment rails that accept stablecoins. To ensure smooth use, connect a compatible Ethereum wallet (like MetaMask), confirm gas fees, and be mindful of DeFi risks such as smart contract bugs and liquidity risk. For everyday use, you can also convert Dai back to fiat or other cryptocurrencies on exchanges when needed.
What are the key risks and considerations when holding or using Dai?: Key risks include smart contract risk from the MakerDAO system, collateral price volatility leading to potential liquidations, and regulatory changes affecting stablecoins. While Dai aims to stay near $1, its price can deviate during extreme market conditions. Users should monitor collateral ratios, ledger status, and stability fees. It's also important to understand gas costs on Ethereum, which can impact the cost of minting, borrowing, or transferring Dai during periods of network congestion. Diversifying holdings and staying informed about MakerDAO governance proposals can help mitigate risk.
What changes or upgrades should I watch for in the Dai ecosystem?: Watch for updates from MakerDAO governance, including changes to collateral types, stability fees, debt ceilings, and management of the Target Price. Upgrades to the Maker Protocol or Layer 2 integrations can reduce gas costs and improve transaction throughput, making Dai faster and cheaper to transact. Community proposals around collateral diversification (adding assets beyond ETH), improvements to liquidation mechanisms, and resilience against market shocks are common topics. Staying informed via MakerDAO forums, official blogs, and trusted DeFi news outlets will help you adapt to protocol changes.