DAI is an Ethereum-based stablecoin that is pegged to the US Dollar. It is the token used in the MakerDAO network, which employs smart contracts to offers users the ability to borrow DAI against their deposits of other cryptocurrencies. DAI is created by taking out a loan on MakerDAO. Once created, DAI can be used like ETH token in transactions. Over its lifespan, DAI has maintained a 1:1 ratio with the US Dollar with only minor and brief fluctuations. DAI can be traded on many centralized exchange platforms.