DeFi New Star: Exploring the Stable Path of Decentralized USD
In the DeFi wave, stablecoins occupy a crucial hub position. Among them, Decentralized USD (commonly referred to as DAI) stands as a model of decentralized stablecoins, leading a trust revolution. Unlike centralized stablecoins like USDT that are backed by fiat currency, DAI is entirely generated through the over-collateralization of crypto assets on the blockchain, running automatically via smart contracts without relying on any central institution's promise for redemption.
Its core mechanism lies in: users deposit assets like ETH into the Maker Protocol smart contract as collateral, which allows them to generate DAI in a certain proportion. This system dynamically adjusts interest rates, liquidation thresholds, and introduces multiple types of collateral to firmly anchor the value of 1 dollar in a volatile market. Even during severe market fluctuations, DAI demonstrates strong resilience, with its over-collateralization design and global liquidation mechanism providing dual security for the system.
The significance of DAI goes far beyond the technical level. It truly returns the rights of currency creation and usage to the community, realizing financial autonomy with "code as law." As more and more DeFi protocols adopt DAI as a foundational liquidity asset, an open, transparent, and censorship-resistant new financial system is thriving on top of it. Decentralized USD is not just a payment tool, but a key cornerstone in building a decentralized future.
