MakerDAO proposed their own stablecoin in 2017 called DAI. This is completely different from how USDT or TUSD work. Unlike the above two cryptocurrencies that adhere to USD, DAI is a cryptocurrency-collateralized stablecoin. Instead of being pegged to USD, it is pegged to Ethereum. The way DAI works is extremely complex to understand and thus, has invited a lot of criticism. Currently, Dai has a market cap of 5.2 million US dollars.

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