Dai Price
DAI answers the same question as other dollar tokens — how do you hold something stable on a blockchain? — but it answers it with code and collateral rather than a company and a bank account. No one deposits dollars to create DAI. Instead, users lock crypto a…
Market data via Binance · signals computed live from daily closes · not financial advice.
Supply structure
Dai has no fixed maximum supply. Circulating supply is a curated estimate used to derive market cap.
What the markets price for Dai
Implied probabilities from live Polymarket prediction markets that mention Dai. Each figure is the market-priced chance of the outcome resolving Yes — a crowd forecast, not ours.
Source: Polymarket · probabilities reflect current market prices and change continuously. Shown for context only — not a forecast, endorsement or financial advice.
Convert Dai to US Dollar
Two-way DAI ↔ USD at the live Binance price. Type an amount in either field, or tap a preset.
About Dai
DAI answers the same question as other dollar tokens — how do you hold something stable on a blockchain? — but it answers it with code and collateral rather than a company and a bank account. No one deposits dollars to create DAI. Instead, users lock crypto assets into smart contracts and borrow the stablecoin into existence against them, which is why DAI is described as crypto-collateralised rather than fiat-backed.
The mechanism turns on over-collateralisation. Because the collateral is itself volatile, you must lock more value than you mint — comfortably more — and if the value of your collateral falls towards the required minimum, the position is liquidated automatically and the outstanding DAI is repaid from the proceeds. Governance token holders set the parameters that keep this working: which assets are accepted, how much cushion each requires, the fee charged on borrowing, and the savings rate offered to holders. Those levers are what pull the <a href="/glossary/peg/">peg</a> back when the market price drifts.
People use DAI much as they use any dollar token: as a trading pair, as collateral in lending markets, as a way to sit out volatility, and as a unit for on-chain payments. Its distinctive appeal is that it is issued by a protocol rather than a firm, which some users prefer on principle. Set against its <a href="/category/cryptocurrencies/stablecoins/">peers</a>, it is the best-known attempt at a stablecoin that does not begin with a bank relationship.
The trade-offs are real and not always well understood. The system depends on price oracles, on liquidations clearing fast enough during violent falls, and on governance making good decisions — a run of bad ones could damage the peg permanently. Crucially, the accepted collateral mix is a governance choice and has changed over its life, and where it includes centralised stablecoins or tokenised real-world assets, the counterparty risk many users came here to avoid comes back in through the collateral. Holding DAI is a collateral and governance decision; <a href="/learn/stablecoins-and-their-risks/">our stablecoin risk guide</a> and <a href="/coins/usd-coin/">USDC</a> are useful comparisons.
Dai vs peers
| Coin | Price | 24h | Market Cap |
|---|---|---|---|
| Dai DAI | $1.00 | +0.00% | $5.30B |
| Bitcoin BTC | $64,311.57 | +0.19% | $1.28T |
| Ethereum ETH | $1,870.92 | +0.55% | $225.45B |
| Tether USDT | $1.00 | +0.00% | $140.00B |
| BNB BNB | $568.54 | +0.61% | $79.60B |
| XRP XRP | $1.10 | +0.66% | $63.69B |
Dai FAQ
How is DAI different from USDC?
USDC is issued by a company that holds reserves and honours redemptions, so trusting it means trusting that firm. DAI is minted by anyone who locks crypto collateral in smart contracts, so trusting it means trusting the code, the collateral, the liquidation process and the token holders who govern the parameters. Different failure modes, same goal of tracking a dollar.
Who can create DAI?
Anyone with acceptable collateral and a wallet. You open a position, deposit assets, and mint DAI against them as a loan you repay later with a fee. Most people never do this — they simply buy DAI on an exchange, exactly as they would any other token. Minting is a borrowing activity with its own risks and is not required to hold the stablecoin.
What happens if my collateral falls in value?
If it drops close to the minimum ratio your position requires, the system liquidates you: your collateral is sold to repay the DAI you minted, and you pay a liquidation penalty on top. This can happen quickly in a sharp market fall, without warning and without your involvement. Borrowers manage it by keeping far more cushion than the minimum demands.
Does holding DAI earn anything?
The protocol has long offered a savings mechanism that pays holders who deposit DAI into a specific contract, at a rate governance sets and changes. That is different from lending DAI on a third-party platform, which adds that platform's credit risk on top. Whatever rate you see quoted anywhere, check where the yield comes from before assuming it is safe.
Can DAI lose its peg?
Yes. It has traded above and below a dollar at times, and any stablecoin's peg holds only while the mechanism defending it holds. For DAI the pressure points are collateral falling faster than liquidations can clear, oracle failure, and stress in whatever assets sit behind it. Treat it as low-volatility with real tail risk, not as a risk-free dollar.
Is DAI fully decentralised?
Less than the pitch suggests, and honest observers say so. Key parameters are set by a governance process where voting power follows token ownership, and the collateral backing the system has at times leaned on centralised assets. It is meaningfully more open than a company-issued stablecoin, but calling it trustless overstates the case — you are trusting a different set of people and processes.
Last updated Jul 25, 2026