Historical retrospective · DeFi
Maker’s Dai made collateral-backed borrowing a public Ethereum primitive
Maker’s Dai system introduced on-chain collateralized borrowing: users lock approved assets in vaults and generate Dai under protocol rules.
The model moved parts of lending, collateral management and liquidation into transparent smart contracts rather than a conventional bank balance sheet.
Dai helped establish DeFi as an ecosystem of composable financial contracts, not just token trading.
Automation can reduce some intermediaries while exposing users to collateral volatility, liquidation mechanics and contract risk.
Primary source
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