Dai is a decentralised stablecoin developed by the MakerDAO organisation, introduced as a means to bring stability to the volatile cryptocurrency market. Launched in 2017, it is pegged to the US dollar, maintaining its value through an automated system of smart contracts on the Ethereum blockchain. Unlike traditional stablecoins that are backed by a reserve of fiat currency, Dai is collateralised by a mix of other cryptocurrencies, primarily Ether, in MakerDAO's Collateralised Debt Positions (CDPs). This decentralised nature ensures that no central authority can manipulate its value, promoting transparency and security. Dai enables peer-to-peer financial interactions, providing a reliable means of transferring value in a digital ecosystem.