DAI/USDS
Stablecoins issued by MakerDAO/Sky, pegged to USD, backed by crypto or real-world assets.
What is DAI/USDS?
DAI and USDS are USD-pegged stablecoins issued by MakerDAO (rebranded as Sky for USDS). DAI, a crypto-backed stablecoin, is created by overcollateralizing assets like ETH in MakerDAO’s smart contracts, ensuring stability through decentralized governance. USDS, an evolution of DAI, may incorporate real-world assets (RWAs) for added stability and regulatory alignment. Both are widely used in DeFi for lending, borrowing, and liquidity provision, offering decentralized alternatives to centralized stablecoins like USDT and USDC.
Related Terms
Bayesian Truth Serum
A mechanism that elicits truthful subjective opinions by rewarding predictions that align with unexpectedly common beliefs.
Circuit Breaker
A mechanism to pause trading in a prediction market to prevent rapid price distortions from herd behavior or manipulation.
OP Stack and OP Superchain
The modular, open-source framework for building Ethereum Layer 2 chains, forming the interconnected Superchain ecosystem.
Thick Market/Thin Market
A thick market has many participants trading high volumes, ensuring robust information aggregation; a thin market has few participants and low volumes, risking inaccurate predictions.
Liquidation (Lending)
The automated sale of a borrower’s collateral when its value falls below a protocol’s required threshold.
Mint
The process of creating and issuing new digital assets or tokens on a blockchain, bringing them into circulation.