Altcoins Talks - Cryptocurrency Forum

Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: erus on March 31, 2024, 10:12:46 AM

Title: DAI Stable coin with Privacy??
Post by: erus on March 31, 2024, 10:12:46 AM

https://www.coingecko.com/en/coins/dai
Is it true that DAI is a stable coin with the Privacy coin type?
I don't understand why DAI can be a Privacy coin, while stable coins are backed by Fiat like USD and EURO.
I'm very surprised, are there any members on the altcoinstalks forum who understand more to explain how DAI works so that it becomes a private stable coin??

Title: Re: DAI Stable coin with Privacy??
Post by: paid2 on April 04, 2024, 01:23:55 AM

Quote from: erus on March 31, 2024, 10:12:46 AM

https://www.coingecko.com/en/coins/dai (https://www.coingecko.com/en/coins/dai)
Is it true that DAI is a stable coin with the Privacy coin type?
I don't understand why DAI can be a Privacy coin, while stable coins are backed by Fiat like USD and EURO.
I'm very surprised, are there any members on the altcoinstalks forum who understand more to explain how DAI works so that it becomes a private stable coin??

"Private" is not the right word IMO.
Decentralized yeah, of course. DAI cannot be frozen in your wallet, unlike USDT or USDC : which is super cool if you like to really own your funds.

If you want to learn more about DAI, and compare it to USDT, this link will be nice to read: Stablecoins Demystified: A Comparison of Dai, USDT, and USDC
 (https://medium.com/@92CLUB.ETH/stablecoins-demystified-a-comparison-of-dai-usdt-and-usdc-6f43c2dac0a3)
Special tip: use DAI on Polygon Network instead of ETH ERC20 : like this your fees will be almost free ;)

Small quote from the said article:

Quote

Comparing Dai, USDT, and USDC

• Decentralization vs. Centralization: Dai operates on a decentralized protocol, while USDT and USDC are centralized stablecoins issued by specific entities.
• Collateral Types: Dai accepts various cryptocurrencies as collateral, primarily Ethereum, whereas USDT and USDC are backed by fiat currency reserves.
• Transparency: Dai and USDC offer greater transparency through on-chain mechanisms and regular audits, while USDT has faced some scrutiny due to limited transparency.
• Regulatory Compliance: USDC stands out with its focus on regulatory compliance and transparent reserves, which may be appealing to users seeking a more regulated stablecoin.

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