- MakerDAO's decentralized stablecoin, DAI, reached a new milestone in terms of supply.
- For the first time in its history, the supply has hit $1 billion.
- The milestone came within a year since the introduction of multi-collateral Dai.
MakerDAO’s Dai, an Ethereum-based decentralized stablecoin, has just become the third-largest stablecoin by market cap, bested only by USD Coin (USDC) in the second spot, and Tether (USDT) itself. The coin has hit a $1 billion supply for the first time since its creation.
The biggest decentralized stablecoin
Maker protocol’s users have officially minted $1 billion worth of DAI, according to MakerDAO’s CEO, Rune Christensen. In other words, users have used MakerDAO’s lending system to get over $1 billion in DAI, which is the largest amount ever issued at one time.
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This is a major milestone for the project, especially when the fact that DAI is not minted like other stablecoins is taken into account.
Most other stablecoins are minted by a centralized firm, such as Tether, Gemini, and others. These companies lock away a certain amount, and then mint an adequate supply of tokens.
DAI does not work like that. Instead, it requires investors to stake another cryptocurrency in order to issue tokens, and it is all done through smart contracts. Smart contracts also regulate the price of DAI, keeping it stable at $1 for years now.
Interest in DAI skyrockets
Now, Maker noted that DAI hit a supply of 1 billion within a year since the launch of Multi-Collateral Dai, which allowed users to stake a number of different tokens last November.
Before that, users could only stake Ethereum. Considering the greater supply of DAI since the change has been made, it is clear that the ability to stake more different cryptos attracted more users to the protocol.
Another potential reason for this surge is the fact that Maker voted to increase the debt ceiling all the way up to $1 billion. The vote took place on September 17th this year, and before the project decided this, the project only had half of its current supply.