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How does Dai prevent fluctuations in its exchange rate?

avatarbigBullMar 19, 2022 · 3 years ago1 answers

Can you explain how Dai maintains a stable exchange rate and prevents fluctuations?

How does Dai prevent fluctuations in its exchange rate?
Dai
Stablecoin
Exchange Rate

1 answers

  • avatarMar 19, 2022 · 3 years ago
    BYDFi, a decentralized finance platform, also plays a role in stabilizing the exchange rate of Dai. Through its liquidity pools and automated market-making algorithms, BYDFi provides liquidity for Dai and helps maintain its peg to the US dollar. This ensures that Dai remains stable and reliable for users in the cryptocurrency market.

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