Future Finance Based on Ethereum
Dai is a dollar pegged stablecoin from the Maker Decentralized Autonomous Organization. Unlike traditional stablecoins such as Tether, it is not actually backed by dollars in a vault but collateral which causes its supply to fluctuate.
Tether has massive trust issues as it can be minted at will with no proof of backing aside from their word. Dai only increases when the collateral staked on the network increases and most of that collateral is Ethereum.
As DeFi grows, the amount of Ethereum locked in the system also increases which is why a record high for Dai is also positive for ETH.
According to defipulse.com there is currently over $650 million locked in DeFi. It too is approaching its all-time high of $685 million which occurred in June this year.
There is also a record amount of Ethereum at 2.42 million, or 2.2% of the entire supply locked in DeFi. The site also reports that there is $30 million worth of Dai stored in DeFi which is almost a third of its supply now that it has reached the milestone $100 million.
The 100M Dai debt ceiling has finally been reached and 30M of those $DAI are locked in DeFi pic.twitter.com/SlIGbgAHWc
— DeFi Pulse