Dai (DAI): tokenomics, risks and score
The original decentralised stablecoin, created by locking collateral into smart contracts rather than by a company holding dollars in a bank.
What Dai is, and what it does
This is a stablecoin. It is designed to hold a fixed value, almost always one US dollar, so it can be used for payments and trading without the price moving underneath you.
What the DAI token itself does: Users lock collateral, typically well above the value borrowed, and mint DAI against it. If collateral falls too far it is auctioned automatically. Governance sets the parameters.
Where it runs: Multi chain. Mechanism: Overcollateralised, governed by MakerDAO. It has been running since 2017, so roughly 9 years.
The facts
- TICKER
- DAI
- SECTOR
- Stablecoins
- CHAIN
- Multi chain
- LAUNCHED
- 2017, so around 9 years of operating history
- MECHANISM
- Overcollateralised, governed by MakerDAO
- MAXIMUM SUPPLY
- Minted against collateral, burned on repayment
- VALUE CAPTURE
- None
- UPGRADE CONTROL
- DAO governed
- VESTING
- Complete
- LIQUIDITY BAND
- Large cap. Widely listed with solid depth. Exit is rarely a problem at retail size.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
Supply expands and contracts by design rather than following a fixed schedule. The token captures no protocol revenue. Any value rests on governance rights, speculation, or future changes that have not happened yet.
Users lock collateral, typically well above the value borrowed, and mint DAI against it. If collateral falls too far it is auctioned automatically. Governance sets the parameters.
Changes go through token holder governance, so control is distributed but influenced by whoever holds most. Supply is spread widely across many holders.
Where it is strong and where it is not
- Has operated for around 9 years and through at least one full bear market
- Deep liquidity across major venues, so exiting a position is straightforward
- Genuine sustained usage rather than incentive driven activity
- Audited, with published reports
- The token captures no protocol revenue, so its value rests on sentiment
- Has 1 recorded incident on its history
Incident history
During the March crash, extreme network congestion allowed liquidation auctions to be won with zero bids, leaving the system undercollateralised. Governance covered the shortfall through a debt auction.
Our read
The main risk
A large proportion of collateral is now centralised stablecoins and real world assets, so it inherits the censorship exposure it was designed to avoid.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.