We’ve got some great news for BlockFi clients. Our platform will now be supporting Multi-Collateral Dai (DAI), an Ethereum-based stablecoin whose issuance and development is managed by the Maker Protocol and the MakerDAO decentralized autonomous organization.
Launched in November 2019, DAI is the first decentralized, collateral-backed cryptoasset. As a stablecoin, DAI’s price is soft-pegged to the US dollar and collateralized by a mix of other cryptoassets that are deposited into smart-contract vaults every time new DAI is minted.
BlockFi clients will be able to earn monthly compounding crypto interest on balances in DAI held in a BlockFi Interest Account (BIA) at an introductory rate of up to 8.5% APY through July 31, 2021.* The rate may be updated in August based on market conditions. Clients will also be able to exchange DAI for other cryptoassets on our easy-to-use trading platform.
DAI’s pegged price is one of its primary advantages, since that has historically created a relatively stable value for the asset. Investors who are wary of price volatility in other cryptoassets, such as bitcoin, may be naturally predisposed to add less historically volatile assets to their portfolios, whose stable price might help offset significant market fluctuations. Stablecoins like DAI could offer an appealing way to achieve this type of diversification.
Another key advantage is that DAI is managed by a decentralized autonomous organization rather than a private company. As a result, all instances of issuance and burning of tokens are managed and publicly recorded by Ethereum-powered self-enforcing smart-contracts, increasing the transparency and security of the system.
The process of developing DAI software is governed via direct voting by regular participants within the token’s ecosystem. As an ERC20 token, DAI can be incorporated into any decentralized application in need of an asset that is less historically volatile.
The addition of DAI to the BlockFi platform is another important step in our mission to give clients access to the financial tools and products that can enable them to reach their financial goals. Using DAI to diversify could be a helpful option for our client base as it continues to grow across the globe.
If you have any questions about supported cryptoassets at BlockFi, please submit a support ticket HERE
Please note: BlockFi will only be supporting Multi-Collateral Dai (DAI) on the platform, not Single-Collateral Dai (SAI). BlockFi is not responsible for any funds lost or made irrecoverable due to trying to receive unsupported assets, wallets, or networks.
Nothing contained in this announcement should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction. The information provided in this announcement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This announcement is not directed to any person in any jurisdiction where the publication or availability of the announcement is prohibited, by reason of that person’s citizenship, residence or otherwise.
Neither BlockFi nor any of its affiliates or representatives provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Trading qualifications are dependent upon geographic and regulatory restrictions.
Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and crypto interest accounts are not subject to FDIC or SIPC protections. For more information, please see BlockFi’s Terms of Service.