Cryptocurrencies
DAI Is King Of Decentralized Stablecoins After Terra Collapse
- MakerDAO, which supports stablecoin, rallied 40% in a week
- DAI requires Ethereum-based coins to be used as collateral
Photographer: Gabby Jones/Bloomberg
This article is for subscribers only.
Just when you thought the world of cryptocurrency stablecoins couldn’t get more complicated, it does.
A so-called governance token named MKR, which is used to help run the decentralized DAI stablecoin, has surged about 40% in value over the past week in the wake of the collapse of the algorithmic stablecoin TerraUSD that shook cryptocurrency markets. DAI is part of the ecosystem of the MakerDAO, one of the first decentralized autonomous organizations in crypto, which in theory acts like a community of pooled interests with no central control.