Dai DAI Crypto-collateralized
1 DAI held since December 2017 now buys what $0.74 bought back then — 26% of its purchasing power lost to US inflation. Stablecoin inflation calculator →
About Dai
DAI is the original decentralized stablecoin, created by MakerDAO in December 2017. Instead of a company holding dollars in a bank, DAI is minted by users who lock crypto collateral such as ETH in smart contracts, always worth more than the DAI they create.
Over time the protocol added other stablecoins and tokenized real-world assets such as US Treasuries to its collateral, trading some decentralization for stability. In 2024 MakerDAO rebranded as Sky and launched USDS as DAI's successor; DAI still works and converts 1:1 into USDS, but exchange support is gradually moving to the new token.
DAI's peg has been tested in both directions: it traded above $1.10 during the March 2020 crash known as Black Thursday, when collateral auctions malfunctioned, and it dipped to about $0.90 in March 2023 because much of its backing was USDC.
Key facts
| Issuer | Sky (formerly MakerDAO) |
|---|---|
| Type | Crypto-collateralized |
| Backing | Overcollateralized crypto, other stablecoins and tokenized real-world assets |
| Launched | December 2017 |
| Regulation | Decentralized protocol with no licensed issuer |
| Official website | sky.money |
Peg history
Daily price of DAI against its $1 target. Daily data smooths out intraday moves, so the deepest depegs were lower than the chart shows — see the events below.
Notable depegs and incidents
- — Traded as high as about $1.11 during Black Thursday, as ETH crashed and collateral auctions malfunctioned; the premium took around two weeks to fade.
- — Fell to about $0.90 alongside USDC, which then made up a large share of its collateral.
DAI supply over time
DAI FAQ
Is DAI safe?
DAI is overcollateralized and fully transparent onchain, so anyone can verify its backing, and it cannot be frozen at the token level. Its risks are smart-contract bugs, sharp crashes in crypto collateral and its exposure to centralized assets such as USDC and tokenized Treasuries.
What backs DAI?
Crypto collateral locked in Sky (formerly MakerDAO) smart contracts, always worth more than the DAI issued, plus other stablecoins and tokenized real-world assets.
Has DAI ever lost its peg?
March 12, 2020: Traded as high as about $1.11 during Black Thursday, as ETH crashed and collateral auctions malfunctioned; the premium took around two weeks to fade. March 11, 2023: Fell to about $0.90 alongside USDC, which then made up a large share of its collateral.
How much value has DAI lost to inflation?
Against the dollar, none — DAI is designed to stay at $1. Against what a dollar buys, about 26% since its launch in December 2017, based on the US consumer price index. Holding a stablecoin protects you from crypto volatility, not from inflation.
Compare DAI
What if you didn't want a peg?
Stablecoins copy the dollar — inflation included. Unstablecoins take the opposite bet: no peg, a fixed or shrinking supply and volatility on the label. See them in the live unstablecoin rankings.
Sources
Market data: DefiLlama (hourly). Inflation: US CPI-U from FRED. This page is informational and not financial advice.