KuCoin blockchain asset today is proudly announcing the listing of another Stablecoin, DAI, and the ERC-20 token, Maker (MKR).
Deposits on both are now available utilizing KuCoin website and to their iOS and Android applications. DAI’s supported pairs are
BTC/DAI, ETH/DAI, USDT/DAI, and MKR/DAI. And for MKR with possible pairs like MKR/BTC, MKR/ETH, and MKR/DAI.
About DAI and MKR
One of the biggest hindrances to crypto’s mainstream recognition as currency is the volatile pricing. The Maker DAI is a stablecoin anticipated to address this volatility. CEO Rune Christensen founded MakerDAO. He uses a different way to stabilize DAI utilizing its proprietary MKR token. It’s an exciting approach that closely accompanies fractional-reserve banking, in which a bank is only needed to hold a portion of its deposit liabilities.
Except the guaranteed backing DAI isn’t the US dollar or any other fiat currency, it’s Ethereum, and the whole system is created on blockchain technology and a smart contract ecosystem.
MKR And DAI
MKR is an ERC-20 token based on the Ethereum blockchain and cannot be mined. It’s alternately created/destroyed in response to DAI price fluctuations to keep it hovering around USD 1. MKR is applied to pay transaction fees on the Maker system, and it collateralizes the system.
DAI is seldom worth exactly $1 – it typically hangs between $0.98 and $1.02. Instead of mining, it’s distributed by purchasing a collateralized debt position (CDP), Maker’s smart contracts that work as a loan. Once the loan is paid off along with MKR fees, the DAI is destroyed as the smart contract is achieved.
To purchase the DAI stablecoin, users require to convert ETH to wrapped Ethereum (W-ETH). It is how decentralized exchanges like 0x enable exchanges between ETH and tokens on the Ethereum blockchain.
Both tokens can be saved in any wallet that supports ERC-20. The Maker system looks complicated, but in theory, it works, and the smart contract tech has more extensive world applications. The DAI stablecoin could defend people and institutions related to fiat currency fluctuations and hyperinflation.