How does Dai prevent fluctuations in its exchange rate?

Can you explain how Dai maintains a stable exchange rate and prevents fluctuations?

1 answers
- BYDFi, a decentralized finance platform, also plays a role in stabilizing the exchange rate of Dai. Through its liquidity pools and automated market-making algorithms, BYDFi provides liquidity for Dai and helps maintain its peg to the US dollar. This ensures that Dai remains stable and reliable for users in the cryptocurrency market.
Mar 18, 2022 · 3 years ago
Related Tags
Hot Questions
- 99
Are there any special tax rules for crypto investors?
- 99
What are the advantages of using cryptocurrency for online transactions?
- 91
What are the best digital currencies to invest in right now?
- 81
What is the future of blockchain technology?
- 70
How can I buy Bitcoin with a credit card?
- 49
How can I protect my digital assets from hackers?
- 11
How does cryptocurrency affect my tax return?
- 8
What are the best practices for reporting cryptocurrency on my taxes?