Introduction
Lending Dai can be a great option for those who want to hold DAI but earn yield. The steps can be a little daunting, especially the first time you do them. That's why we've put this guide together for you.
Step-by-Step Guide
1. Obtain Dai (DAI) Tokens
In order to lend Dai, you need to have it. To obtain Dai, you'll need to purchase it. You can choose from these popular exchanges.
See all 26 pricesPlatform Coin Price Uphold Dai (DAI) 1 BingX Dai (DAI) 1 2. Choose a Dai Lender
Once you have DAI, you'll need to choose a Dai lending platform to lend your tokens. You can see some options here.
3. Lend Your Dai
Once you've chosen a platform to lending your Dai, transfer your Dai into your wallet in the lending platform. Once it's deposited, it will start earning interest. Some platforms pay interest daily, while others are weekly, or monthly.
4. Earn Interest
Now all you need to do is sit back while your crypto earns interest. The more you deposit, the more interest you can earn. Try to make sure your lending platform pays compounding interest to maximise your returns.
What to be Aware of
Lending your crypto can be risky. Make sure you do your research before depositing your crypto. Don't lend more than you're willing to lose. Check their lending practices, reviews, and how they secure your cryptocurrency.
Latest Movements
Dai (DAI) is currently priced at $16 with a 24-hour trading volume of $147.11M. The market cap of Dai stands at $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 cap
- $3.41B
- 24h volume
- $147.11M
- Circulating supply
- 3.41B DAI
Frequently Asked Questions About Dai (DAI) Lending
- What is Dai and how does its stability work?
- Dai is a decentralized, non-custodial stablecoin designed to maintain a value close to $1. It operates on the Ethereum blockchain using overcollateralized debt positions in the Maker Protocol. Users lock up collateral assets (like ETH) in a Maker Vault to generate Dai. If the collateral value falls, the system triggers liquidation to protect the peg. Unlike fiat-backed stablecoins, Dai is not issued by a central bank; its stability relies on smart contracts, governance, and economic incentives within the Maker ecosystem. For everyday use, Dai offers a stable unit of account and medium of exchange on DeFi platforms, reducing exposure to crypto price volatility.
- How can I acquire and store Dai securely?
- You can acquire Dai through crypto exchanges that list it, or by converting other cryptocurrencies on DeFi platforms. For storage, use a compatible wallet that supports ERC-20 tokens, such as MetaMask, Ledger, or other hardware/software wallets. If you want enhanced security, consider a hardware wallet for long-term storage and enable recovery phrases. When using DeFi apps, be mindful of contract addresses and only interact with reputable protocols. Always double-check the Dai contract address and use centralized exchanges with proper security practices to minimize risk of hacks or phishing. Regularly update wallet software and enable two-factor authentication where possible.
- What are the main advantages and risks of using Dai in DeFi?
- Advantages include price stability relative to more volatile tokens, broad acceptance across DeFi platforms (lending, borrowing, swapping), and quick settlement on the Ethereum network. Dai enables predictable payments, savings, and collateral at risk-adjusted rates within decentralized protocols. Risks involve smart contract risk, oracle risk, and potential systemic events within the Maker ecosystem that could affect Dai’s peg. Regulatory developments could also impact stablecoins. To mitigate risk, diversify across platforms, review protocol health metrics (collateralization ratios, liquidation thresholds), and stay informed about MakerDao governance decisions and audits. Always assess whether the use case justifies exposure to DeFi risks.
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