Dai is a stablecoin that aims to maintain a value close to $1. It differs from other stablecoins as it is only backed by other cryptocurrencies such as ETH, BAT, and USDC. This is achieved through the Maker protocol on the Ethereum blockchain, where crypto assets can be used as collateral to generate Dai. The Maker protocol and Dai play a crucial part in the decentralized finance (DeFi) ecosystem of Ethereum.
Holders of Dai can earn additional income through the Dai Savings Rate feature in the Maker protocol. The Maker protocol is run by the MakerDAO decentralized autonomous organization, controlled by holders of the MKR governance token.