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
Retail Payment System
Infrastructure for consumer-to-business transactions, handling everyday payments.
Liquidation (Perp Dex)
The forced closure of a leveraged position when margin falls below the required level.
Uniswap
Uniswap is a decentralized exchange (DEX) on Ethereum and compatible blockchains, enabling peer-to-peer trading of digital assets through automated market maker (AMM) liquidity pools.
Nakamoto Coefficient
A metric quantifying blockchain decentralization by identifying the minimum number of independent entities needed to compromise network consensus, typically 33% of stake in proof-of-stake systems or 51% of hash power in proof-of-work.
Matching Engine
The algorithm that pairs buy and sell orders in exchanges based on rules like price-time priority.
Merkle Patricia Tree (MPT)
A specialized data structure in Ethereum that combines a Merkle Tree with a Patricia trie to efficiently store and manage key-value pairs.