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Learn Ethereum
book

Learn Ethereum

by Xun (Brian) Wu, Zhihong Zou, Dongying Song
September 2019
Beginner to intermediate
540 pages
13h 3m
English
Packt Publishing
Content preview from Learn Ethereum

Dai stablecoin

The concept of Dai stablecoin is like a HELOC (home equity line of credit) loan, through which you tap into your home equity on the house as the collateral and get a pool of cash for your own financial purposes. The interest rate of a HELOC loan is normally tied to the prime rate, which is set by the federal reserve. The bank lending you the HELOC loan may also charge some fee associated with loan applications and monthly or annual maintenance of the HELOC account.

With the Dai stablecoin, you are locking up some ethers as the collateral asset in exchange for Dai. It is intended as a stable cryptocurrency whose unit value is pegged to one US dollar. The advantage of such stablecoins is they can leverage all essential capabilities ...

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Publisher Resources

ISBN: 9781789954111