How is DAI used?
For cryptocurrencies such as Bitcoin and Ethereum to become popular, it is very important that they can be used in the real world.
DAI, as a stablecoin, has already created many examples of its use.
Let's consider how DAI can be used in several areas.
DeFi (Decentralized Finance)
As we will learn in detail in the lessons that follow, a project that utilizes blockchain in the financial domain is called Decentralized Finance (DeFi).
DAI is being used in a number of DeFi projects.
For example, Compound, one of the DeFi projects, allows users to earn interest by lending out their own DAI.
Payment and remittance
As a stablecoin, DAI is better suited for payments and remittances than more volatile currencies such as Bitcoin.
Of course, volatility is not the only advantage.
Compared to fiat currencies with stable prices, Dai is superior in terms of "global availability" and "low fees".
Asset refuge
Stablecoins such as DAI are also used as a temporary refuge for assets.
For example, a cryptocurrency trader may want to temporarily suspend trading when the price is fluctuating too much.
However, converting cryptocurrency into fiat currency each time would not only incur too many fees, but also make it impossible to resume trading immediately.
In such situations, converting to DAI will reduce the fees and allow you to resume trading as soon as the timing is right.
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