Mastering BaseDAI Used In DeFi: The Complete Guide
Brief Overview
Hello, everybody! Let’s take a look at decentralized finance (DeFi) and one of its components, BaseDAI. This guide is aimed at helping readers understand everything there is to know regarding this cryptocurrency and its use case.
The term BaseDAI refers to what it is and who established it.
Base DAI or decentrally autonomous institution is a Base stablecoin that is pegged towards the US dollar. Unlike traditional stablecoins that support real world assets, BaseDAI is supported by a decentralized smart contract system — MakerDAO. Such a distinct structure offers numerous opportunities for enthusiasts of DeFi which makes BaseDAI an inseparable part of the stability mechanism of MakerDAO.
BaseDAI Opportunities
Borrowing and Lending
Within the scope of DeFi, BaseDAI serves as facilitation for lending and borrowing between peers. Users can open a Maker Vault and deposit ETH or other cryptocurrencies to mint BaseDAI, which can be utilized for several diversified targets. Most borrowers use BaseDAI for liquidity needs. On the other hand, lenders use it for interest earning.
BaseDAI can be used for lending and borrowing, but there is more to the asset.
Starting with BaseDAI, its holders can stake the asset to receive governance tokens known as MKR.
Users who hold these MKR tokens are allowed to vote inside of the MakerDAO, thus letting them partake in the governance concerning the BaseDAI system.
BaseDAI in action
Decentralized Exchanges (DEXs)
BaseDAI has become an essential component of DEXs for trading activities amongst crypto assets. DEXs utilize BaseDAI as a currency pair facilitating the purchase or sale of alternative currencies and do not depend on a central authority to manage trades through intermediaries.
Yield Farming
BaseDAI has emerged as one of the most sought after assets for yield farming, allowing users to get rewards for lending their BaseDAI in DeFi protocols or staking it in AAVE and similar platforms. Through yield farming, participants are rewarded for their investment, all while maintaining the strength and stability of the BaseDAI system.
BaseDAI related metrics
| Metric | Value |
|---|---|
| Total supply | 269,240,829.32 BaseDAI |
| Market cap | $269,240,829.32 |
| Trading volume(24 hours) | $174,829,640.69 |
| Price | $1.00 |
Conclusion
DeFi integration will continue to expand further, and BaseDAI’s power of transformation will help users accomplish everything from lending, borrowing, to staking and engaging in governance. It is an utmost asset for every individual investors as well as DeFi protocols developers due to its stability and decentralized approach.
This way, you will be able to discover more aspects of the crypto world and further explore DeFi as well. Don’t forget to check out some of our articles that cover various topics about blockchain technology and the crypto industry.
Remain inquisitive, stay updated, and together, we will keep exploring the digital world.
Common Questions Regarding BaseDAI
What exactly is BaseDAI?
BaseDAI is a decentralized stablecoin that is directly pegged to the US dollar. It is built on the Ethereum blockchain and is meant to be used in daily transactions.
How BaseDAI is different from other stablecoins?
BaseDAI is not directly pegged to any fiat currencies nor does it use other cryptocurrencies as collateral like other stablecoins. Rather, it uses a network of users. This leads to less manipulation and greater stability.
Where and how do I get BaseDAI?
You can buy it on most crypto trading platforms like Binance, Coinbase, or Uniswap.
In what ways BaseDAI can be utilized?
It can be utilized in daily transactions, such as purchasing goods and services over the internet, or sending and receiving money to friends and family. It can also be used to earn interest on your savings.
Is it BaseDAI safe for users?
BaseDAI is safe and completely secure for users, being built on Ethereum’s blockchain which is considered one of the most secure.
Using BaseDAI has its advantages. What are those?
One of the advantages is, it has gained popularity amongst the decentralized stablecoins along with being adopted into the Ethereum ecosystem. And many others:
- It’s stable and hard to manipulate.
- It is spread out, meaning no single governing body can manipulate it.
- Its value can be easily purchased and used.
- It can be used to earn interest on savings, and also for other day to day transactions.
What are the risks of using BaseDAI?
Some of the risks that come with using BaseDAI are:
- Base DAI has the risk of losing its value against the US dollar.
- It can get hacked, or stolen.
- BaseDAI does not have any real world assets to back it.
How can I learn more about BaseDAI?
BaseDAI is discussed in social platforms, which can also help you understand the same. Furthermore, online resources such as their website and whitepaper are available to the public.
Is BaseDAI a good investment?
It’s a personal decision whether or not BaseDAI will make for a good investment, based off your goals and current situation. Because it is still an emerging coin, do your research and only invest that which you are willing to lose.
What is the future of BaseDAI?
BaseDAI is a promising new stablecoin with a lot of potential.
Its current circualtion among a larger audience is promising, and its further popularity is almost guaranteed