What is the purpose of cDAI?
The purpose of cDAI is to provide a stablecoin version of the Dai (DAI) cryptocurrency.
cDAI is a decentralized, collateralized stablecoin that is pegged to the US Dollar. It is designed to be used as a medium of exchange and store of value on the Ethereum blockchain. cDAI is an ERC-20 token built on the Ethereum blockchain and backed by collateral in the form of Ether (ETH).
The collateralization ratio for cDAI is 1:1, meaning that each cDAI token is backed by one ETH. This ensures that the value of cDAI remains stable and does not fluctuate with market conditions. The main purpose of cDAI is to provide users with a reliable and secure way to store their funds without having to worry about price volatility.
It also allows users to transfer funds quickly and easily without having to worry about exchange rate fluctuations or transaction fees associated with traditional banking systems. Additionally, cDAI can be used as a medium of exchange for goods and services on the Ethereum network, allowing users to make payments in a secure and cost-effective manner.
