Similar Software to Dai: 3 best alternatives for 2023

Dai is a stablecoin, designed to stay pegged to the US Dollar. Dai was created in 2014 and launched on the Eth mainnet in late 2017. Dai was created as an over-collateralized algo stablecoin based on MakerDAO smart contracts, where depositors put up 150 dollars in collateral for every 100 dollars of Dai. Dai is fully decentralized. If anyone spots a loan that is below margin, they can call a function to liquidate the loan and are paid a percentage bounty. Dai is thus controlled by the interest rates and collateral margins set by the DAO. Dai is currently the forth largest stablecoin by market cap, after Tether, USDC and Binance USD, and is the 12th largest cryptocoin. Originally the collateral was all ETH, but in 2020 Dai entered a deflationary spiral caused by an ETH decline briefly driving the price of Dai up to $1.11, and now Dai is backed by at least 62% USDC.

1. Binance USD

Stablecoins have been the key factor behind the boom in the cryptocurrency market in recent years. Binance USD, or BUSD, is the stable coin developed by Binance and Paxos pegged at a 1:1 ratio to the U.S. dollar. BSUD was a project that was born to help make transactions in decentralized finance ecosystems "Defi" easier, even for the inexperienced. Binance USD is one of the few stablecoins that have been approved by the NYDFS, which allows it to be traded on any electronic platform in the United States.

Since its launch, Binance USD has been an ERC-20 token that also supports BEP -2, this makes it an easily accessible token anywhere because, being an ERC -20 token, it works with many blockchains such as Ethereum, Binance Smart Chain, and Binance Chain and is available on many platforms, not just Binance's platform. In addition, BUSD is backed by multiple Paxos reserves, and by offering very low fees, it is the most widely used stable coin in the world.

2. USDC

USD Coin, or USDC, is the second most popular stablecoin of all behind Tether, and the fourth largest crypto of all by market cap at this time. USDC is a fully backed stablecoin, designed to always be pegged one to one with the US dollar, and used to hold value for later use or to send or receive funds. USDC was created in 2018 by Centre, is backed by industry giants Coinbase and Circle, and has partnerships with Bitmain, the mining giant, along with banks Silvergate and US Bankcorp Asset Management (USBAM.) USDC is continuously audited by Grant Thornton, LLP. USDC was the first stablecoin listed on Coinbase. USDC is backed by dollar assets of cash and treasuries. USDC had a minor controversy when 9% of reserves were discovered to be in commercial paper but has now stopped that practice. USDC is growing quickly and briefly passed Tether during a Tether controversy before moving back.

3. Tether

Tether was founded in 2014 as Mastercoin, and went into use in 2015. Tether is a stablecoin, which is always pegged one to one with the US dollar, and is used as a "safe haven" or a place to store funds prior to trading. Tether is by far the most popular of all the stablecoins, so much so that Tether actually has a higher market cap that any cryptocoin, including Bitcoin. Tether is a fully backed stablecoin, meaning that liquid deposits are kept by Tether that equal the value of all outstanding coins, as opposed to algo stablecoins. Tether has undergone some controversy, being probed by the New York State AG, but settled all charges. After the collapse of the algo TerraUSD stablecoin, Tether underwent intense scrutiny, with some exchanges very briefly breaking the USD peg. However, Tether has always honoured exchanging Tether for USD, and has paid out over ten billion dollars in exchanges during recent market turmoil, proving their stability.