Top DAI Casinos

DAI for Beginners

DAI, like a good number of other stablecoins, is a collateral-backed coin whose value is pegged to that of the US dollar. It is a token based on the ERC-20 protocol, which runs on the Ethereum blockchain. Launched in 2017, it is the brainchild of MakerDAO, and its founder and CEO is known as Rune Christensen.

There are plenty of features that make DAI stand out from all other stablecoins. Let us take a look at some of them.

Decentralization

One of the most outstanding features of DAI is its decentralization. The DAI token is backed by Ether and has its price stability maintained using smart contracts. As such, it does not rely on any third party.

Rather, its network operates under preset rules that govern the relationship between DAI, ETH and a third token known as Maker (MKR). It is a truly decentralized and trustless stablecoin that can’t be censored.

Crypto-Collateralization

Unlike a majority of stablecoins that are fiat-collateralized, DAI is a crypto-collateralized token. This makes a world of difference because it does not require a company’s word or third-party audits to confirm the existence of a peg.

Instead, you can confirm the existence of ETH reserves backing up the coin at all times on the publicly visible Ethereum blockchain.

Governance Token (Maker)

As mentioned, DAI’s operations are closely linked to ETH and MKR tokens. You might be familiar with ETH but probably not so much with Maker. Maker is a governance token for DAI created by the Maker Decentralized Autonomous Organization (MakerDAO).

Just like DAI, it is an ERC-20 token. Its holders are in charge of business logic, risk management and other governance roles on the network.

Stablecoin Comparison Table

DAI Stability Mechanism

As a crypto-collateralized stablecoin, DAI maintains its stability courtesy of the backing of Ether. But how is this possible seeing as Ether is itself an unstable cryptocurrency? The stability mechanism for this token is quite high-level but the following explanation should give you a basic understanding of the concept.

It all makes use of a system known as Collateralized Debt Position (CDP). Anyone who wants to acquire DAI tokens sends ETH to a CDP. In exchange for the ETH, the sender can withdraw DAI. But it’s not as simple as a 1:1 exchange ratio. In order to balance the coin’s price at $1 at all times, it uses an approach known as overcollateralization.

In order to access DAI tokens, you need to pay for the DAI and add a stability fee on top. When the value of DAI drops below $1, the governance team increases the fee to increase DAI’s price. This reduces the supply and drives prices up. Similarly, when DAI price surpasses the $1 mark, they reduce the stability fee to make DAI cheaper. In turn, this increases supply and reduces prices.

Note that the governance system is not a centralized institution. Rather, it consists of holders of the MKR token.

DAI Casino Bonuses

At DAI casinos, you will find a wide range of alluring bonuses to keep you coming back for more. Take a look at some of them below.

No Deposit Bonus

As you can tell from its name, this is a bonus you get to enjoy without having to make any deposit. All you need to do is create an account on a casino. Unfortunately, it is only available on a handful of platforms. With this bonus, you can get a feel of the site without having to commit any funds.

Welcome Bonus

Every DAI casino worth its salt has a welcome bonus. In most cases, this bonus covers the first four or so deposits. It is often a generous bonus package, one that can give you a chance to explore the variety of games on offer.

Periodic/ Seasonal Bonuses

You will often find weekly, monthly and at times, even daily bonus offers. There could also be a range of seasonal offers that can keep things fresh and exciting.

Loyalty Bonuses

Like other businesses, casinos reward loyal clients with various tokens of appreciation. These bonuses can often give you the opportunity to join VIP ranks and go up the ladder over a period of time to access even more benefits.

Benefits of Using DAI for Betting

Stability

As you can probably tell from the description of DAI as a stablecoin, one of the benefits of using it in casinos has to do with stability. Cryptocurrencies have plenty of benefits to offer punters, but their volatility is a major challenge.

DAI, on the other hand, has mechanisms in place to maintain a price of $1 at all times. This means you can say goodbye to having your profits turn into losses when crypto prices take a beating.

Notably though, its stability is not so great at the moment. Though the stability mechanism behind this coin is elegantly designed, it has not been working quite as well as intended. It has been hovering below the $1 mark because of an imbalance between supply and demand.

ETH price has been on the rise, and more traders are opening CDP positions so as to use DAI to buy ETH. While this results in the creation of more DAI, the low demand for the new tokens causes the imbalance. The team is, however, working on a long-term solution to address the issue.

Trust

Since DAI is one of the few decentralized tokens, it operates without the need for a middleman. Thanks to the use of smart contracts, it does not require the intervention of a third party to confirm the existence of collaterals against issued tokens.

Censorship Resistance

As a decentralized entity that makes use of blockchain technology, smart contracts and a voting system by MKR token holders, DAI is resistant to censorship. It cannot be shut down or in any other way controlled by any entity.

Open

Collateralized stablecoins require third-party audits to keep things in check. However, DAI works on an open and transparent framework. On the public Ethereum blockchain, anyone can confirm its integrity at any time.

Final Thoughts

DAI is a great cryptocurrency for online casinos. As a cryptocurrency, it overcomes the challenges associated with fiat currency services. These include slow transaction processing and high transaction fees.

At the same time, it overcomes the biggest cryptocurrency-related obstacle – volatility. In spite of the fact that its price has been fluctuating recently, it is still relatively stable. This is especially true if you look at the wild fluctuations being experienced in the crypto industry as a whole.

Lastly, it is superior to other stablecoins due to its transparency and decentralization. You can easily verify everything about it on a public ledger.

Other Top Stablecoin Casinos

As you will have gathered from this guide, DAI is not the only stablecoin that can be used at casinos. View the following pages for a list of casinos that offer banking options for other stablecoins.