The safest method to add the Dai stablecoin to the MetaMask Wallet is via the CoinGecko application and directly from MetaMask. CoinGecko collects the contract addresses for Dai (DAI) on supported networks like ETH, Optimism, Arbitrum, and others. Via their website, you can securely and quickly add Dai to MetaMask at the tap of a button.
Introducing Dai Stablecoin (DAI)
DAI is a popular decentralized stablecoin pegged to the USD (U.S. dollar) and operates on the ETH blockchain. A decentralized autonomous organization (DAO), MakerDAO, has created DAI to offer an accessible and stable financial system. Maker DAO utilizes the system of smart contracts to generate DAI and handle its value to the USD, confirming that its value remains firm over time.
The Dai users can access the stable kind of currency to use in DeFi (decentralized finance) app, decreasing the vulnerability to the volatility of other digital currencies such as BTC. The decentralized governance structure of MakerDAO enables users of its MKR token to participate in proposals for enhancing the Dai system and sustaining its stability.
How Does Dai Work?
DAI (Dai) is an ERC-20 token you can purchase through DEXs (decentralized and centralized exchanges). Also, users can create and borrow DAI by launching a Maker collateral vault via the Oasis Borrow dashboard of the MakerDAO and deposit ETH-based tokens as collateral. The Maker collateral vaults, earlier known as collateralized debt positions (CDPs) in a previous iteration of the Maker protocol-are the smart contracts that keep collateral in security unless the borrowed Dai returns. The cost for the collateral users have deposited should exceed their DAI value. The user’s collateral will liquidate if collateral costs decrease below the cost of the issued Dai tokens.
DAI is an integrated virtual asset available in the blockchain ecosystem, and when borrowed by users, they can use it in the DeFi app or blockchain-based games, and others.
Benefits of DAI
Dai is correlated (soft-pegged) to the USD (U.S. dollar) cost. The increased cost stability managed by DAI stablecoins has encouraged users to check Dai as a firm store for long-term value and a feasible option for daily transactions, increasing the utility of digital currency systems and blockchain technology.
Zero Account minimum
Many users worldwide need more digital assets to become eligible to register an account on many platforms, but there is no lowest amount needed to use DAI.
Stable Value
Dai can offer a stable alternative asset and financial inclusion for users in places with economic instability.
Decentralized Privilege
As Dai is a permissionless and transparent system, it confirms that users get more unrestricted access to their wealth. By contrast, a few governments, like Myanmar and Zimbabwe, are known to impose restrictions on the capacity of citizens to access the fiat by launching everyday and monthly withdrawal caps.
Income Generation
Via the Dai Savings Rate system, customers leverage DAI stablecoin to earn income via interest generation and lockup. As DAI is an ETH-based blockchain and hence leverages its consensus mechanism of the network, it does not own its staking mechanism. Even so, the MakerDAO system permits Dai users to earn returns by funding DAI into the MakerDAO smart contract. The particular smart contract system protects the investment of the users, which has zero minimum, and users can withdraw anytime.
Rapid and cheap
In some cases, overseas wire transfer fees are prohibitively high, and it takes disruptively long to finalize the transfer. With DAI’s rapid processing times and nominal transfer fees, international transactions have become more efficient and transparent.
Highly safe
The MakerDAO is known to conduct extensive research and audits to ensure the vigorous safety of the platform. Via mathematical analysis, developers precisely verify each smart contract and primary protocol mechanism that accounts for the internal formation of the system.
How to Add Dai Token to MetaMask
Via CoinGecko Platform
With Dai CoinGecko, users can discover the authorized contract address for DAI on BNB Chain, ETH, Optimism, METIS, and every EVM chain where the DAI stablecoin is accessible.
Check out the simple procedure below to add Dai to your MetaMask Wallet:
- First, you must launch the CoinGecko app on your device and move to the DAI page.
- Next, locate and press the Contract button under the Info tab.
- Then, look for the network you wish to add the Dai token to on MetaMask.
- After this, you should navigate and hit the MetaMask icon to add Dai to your wallet automatically.
Via ETH Network (ERC-20)
Users majorly use DAI on ETH, although it is also accessible on many similar blockchains. Unless you wish to use the DAI token on another network for certain reasons, adding the token to the desired wallet on the ETH network is best.
To add the token to MetaMask, you must ensure that you have selected the ETH Mainnet as a default network on MetaMask. After connecting the wallet to the ETH mainnet, users can use the token’s contract address to import the DAI ERC-20 token to their wallet.
Following are the instructions to add DAI to MetaMask:
- Firstly, open the MetaMask Extension and access your wallet with the correct sign-in credentials.
- After unlocking the wallet, you should ensure that you have selected the ETH network.
- Then, locate and hit the [Import tokens] tab.
- On the token import screen, you must look for the DAI token and choose the Dai Stablecoin (DAI) option from the available options.
- After this, press the [Import tokens] button to add DAI to your wallet.
Is it Secure to Hold DAI Token on MetaMask?
MetaMask is a reputable and trusted ETH wallet known for its safety measures. Holding Dai on MetaMask is secure if you take essential safety measures, like offline securing the private keys (backup phrase), routinely updating your password, and carefully tapping random URLs. However, as with digital currency, there is always the risk of fund loss or theft, so it is necessary to follow best safety practices to keep digital currency safe.
Also Read: How to Install MetaMask Wallet: A Step by Step Guide
Conclusion
Adding the DAI token to the MetaMask Wallet is a straightforward and quick procedure through the CoinGecko application and ETH Network (ERC-20). It grants users access to authentic addresses for DAI tokens on different networks and connects them to MetaMask with a few taps. Being a decentralized stablecoin, Dai provides a firm asset choice for users involved in DeFi. On the other hand, MetaMask is a safe and widely used wallet, and users must always follow the best safety practices to safeguard their funds.
