You can deposit or withdraw DAI from Bitso using the Ethereum (ERC-20) Network exclusively. Make sure you choose this network when transferring your coins.
What is DAI?
DAI is a decentralized stablecoin offered by the Maker Protocol that is soft-pegged to the value of USD 1. This means DAI was created to closely follow the dollar, keeping its value as close to exactly 1 US dollar as possible. DAI is a collateral-backed stablecoin, meaning it is either created or burned as needed when users borrow or lend from the Maker Protocol. Maker Protocol is controlled by MakerDAO, a decentralized organization meant to democratize the process of governance. MakerDAO, and their governance token MKR, are in charge of maintaining the stability of the price of DAI.
What makes it unique?
DAI is a multi-collateral asset where different assets such as ETH, BAT, USDC, wBTC, COMP, Tether, and AAVE can be provided in exchange for DAI;
Most other stablecoins tend to be fiat-backed, DAI is backed by cryptocurrencies;
Holding DAI provides the utility of hedging against volatility. If someone expects the crypto market to turn negative, for example, converting your assets into stablecoins can be seen as a good way to protect their value;
Provides rewards for holders through the Dai Savings Rate, a variable interest reward that is applied to DAI held on the exchange;
The value of DAI is “soft-pegged”, meaning it isn’t always exactly 1:1. The market can occasionally push the value of DAI off in either direction. However, this has historically been solved quickly by the smart contracts built into the Maker Protocol.
Users can acquire DAI by taking out a loan on the Oasis app or by simply purchasing it directly from any exchange that offers it, like Bitso. Being an ERC-20 token, DAI can be used on any dApp that uses Ethereum tokens for payments and has quickly grown to become the most widely used crypto-backed stablecoin. The amount awarded by keeping DAI on the exchange, as well as the amount of interest owed on a loan is decided by MakerDAO governance. As of February 2022, there is a circulating supply of over $10B DAI.