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Dai Review 2026: A Collateral-Backed Stablecoin

Dai (DAI) is a collateral-backed stablecoin from Maker Protocol, designed to track the U.S. dollar. Its main appeal is onchain dollar exposure; its peg, collateral and smart-contract risks remain important.

By the DappsAtlas editorial team · Updated

DappsAtlas score

5.8/10

Mixed

Our verdict on Dai

5.8/10

DAI may suit people who want a dollar-targeted asset for use on Ethereum and understand how collateral-backed stablecoins work. Its main strength is that users can generate it against locked collateral through Maker Protocol, rather than relying only on a promise of a fixed price. The caveats are meaningful: the peg can move, collateral positions can be liquidated, and Dai does not publish fee or audit details here. Review current protocol terms and risks before using it.

Score breakdown

How Dai scores

Security
n/a
Ease of use
6.0/10
Fees
n/a
Features
6.0/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Dai?

Dai (DAI) is a stablecoin generated through Maker Protocol and designed to maintain a value close to one U.S. dollar. Unlike a token that simply promises a fixed price, DAI is backed by collateral locked in protocol vaults.

DAI is an Ethereum token that can be held and transferred with compatible wallets and services. Its dollar target is not guaranteed: the price can move, and the collateralized system introduces liquidation and smart-contract risks. Dai does not publish fee details, audit information or team details here.

How Dai works

Maker Protocol lets users generate DAI by locking collateral in a smart-contract vault and borrowing DAI against it. The collateral backs the resulting debt, and users need to manage the position under the protocol's requirements. If collateral value falls too far relative to the debt, the position may face liquidation.

DAI is designed to trade close to one U.S. dollar, but its market price can fluctuate. Collateral backing and protocol rules support that target; they do not guarantee that DAI can always be sold or redeemed for exactly one dollar.

4 features

Key features

01

Dollar target

DAI is intended to maintain a value close to one U.S. dollar, though the market price can vary.

02

Collateral-backed minting

Users can generate DAI by locking eligible collateral in a Maker Protocol vault and taking on debt.

03

Ethereum token

DAI is identified as a token on Ethereum, where it can be held and transferred using compatible wallets and services.

04

Onchain use

DAI can be used as an onchain asset; specific services and supported networks depend on the wallet or platform.

Pros and cons

What we like

  • Designed to provide onchain exposure to a dollar-linked asset.
  • Collateral-backed minting is a clearly defined way to generate DAI through Maker Protocol.
  • Runs as an Ethereum token and can be held or transferred using compatible wallets.

Watch out for

  • DAI can trade above or below its intended one-dollar value; the peg is not guaranteed.
  • Collateral-backed minting carries liquidation risk if collateral value falls or protocol requirements are not met.
  • The project does not publish fee details, audit information or team details here.
  • Using DAI on the wrong network or with an incompatible wallet can put funds at risk.

Dai fees

Dai does not publish a single fee schedule here. Costs may depend on how you acquire or generate DAI. Check the relevant trading venue or Maker Protocol interface for current terms before transacting.

Is Dai safe?

DAI relies on smart contracts and collateral management through Maker Protocol. A position backed by collateral can face liquidation if its value falls relative to the debt, and technical or operational failures can create additional risks. The market price can also deviate from its dollar target.

Dai's audit information, team details and regulatory status are not published here. Do not treat DAI as risk-free cash; check the protocol's current terms and the token and network details before using it.

5 steps

How to get started with Dai

  1. 1

    Choose an Ethereum-compatible wallet and make sure it supports the DAI token.

  2. 2

    Acquire DAI through a service that supports Ethereum, or review Maker Protocol's current requirements if you intend to generate it against collateral.

  3. 3

    Confirm the network and token details with the service you are using before sending funds.

  4. 4

    For protocol-generated DAI, review collateral requirements, debt terms and liquidation conditions before opening a vault.

  5. 5

    Keep a reserve for Ethereum network transaction costs and monitor your position if you have collateral locked.

Who Dai is for

DAI is for crypto users who want a dollar-targeted token on Ethereum and are comfortable managing stablecoin and smart-contract risk. Users considering minting it should understand collateral requirements and liquidation conditions; people seeking guaranteed cash value or a risk-free asset should not assume DAI provides either.

Dai FAQs

Is Dai always worth one U.S. dollar?

DAI is designed to stay close to one U.S. dollar, but its price can move above or below that level. The target is not a guarantee of redemption at exactly one dollar.

How is Dai created?

DAI is generated through Maker Protocol when users lock collateral in a smart-contract vault and take on a DAI-denominated debt. The collateral must meet the protocol's requirements, and falling collateral value can expose a position to liquidation.

Which blockchain does Dai use?

DAI is an Ethereum token. Before sending or receiving it, check that your wallet and the service you use support DAI on the same network.

What fees does Dai charge?

Dai does not publish fee details here. Costs can depend on whether you acquire DAI through a trading venue or generate it through the protocol; check the applicable interface and terms before acting.

Is Dai audited and safe?

Dai's audit information is not published here. DAI also carries smart-contract, collateral, liquidation and peg risks, so it should not be treated as risk-free cash.

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How we checked

Sources

No public sources were recorded for this review.

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