The $DAI stablecoin is a decentralized, unbiased, collateral-backed cryptocurrency whose value is soft-pegged to the US Dollar. $DAI is held in digital wallets and supported on Ethereum and other popular blockchains. All circulating $DAI are generated from Maker Vaults and are backed by a surplus of collateral assets. Users generate $DAI by depositing collateral assets into Maker Vaults within the Maker Protocol. Depositing collateral into Maker Vaults enables $DAI to be minted and entered into circulation. Every $DAI in circulation is directly backed by excess collateral, meaning that the value of the collateral is higher than the value of the $DAI debt, and all $DAI transactions are publicly viewable on the Ethereum blockchain.
MakerDAO is a decentralized governance community that enables the generation of $DAI, the world’s leading decentralized stablecoin. The decentralized governance community of MakerDAO manages the generation of $DAI through an embedded governance mechanism within the Maker Protocol. From early adopters and Maker Foundation Employees to $MKR holders, ecosystem stakeholders, and community members, the Maker Community is an indispensable and critical part of the Maker system. In short, the Maker Community is MakerDAO. $MKR holders have the sole authority to enact changes to the system through voting.
The Maker Protocol is the set of smart contracts that make it possible to generate $DAI. The Protocol was the first decentralized finance (DeFi) application to earn significant adoption and remains one of the largest decentralized applications (DAPPs) on the Ethereum blockchain. All $DAI is backed by a surplus of collateral that has been locked into audited and publicly viewable Ethereum smart contracts.