Maker Blockchain Platform
Dai is a cryptocurrency created on Maker system that serves a purpose of a non-volatile coin. Unlike its counterpart Tether, Dai is not backed up by fiat money held in a bank account that would make it dependent on the bank. Dai is genuinely decentralized because its value is controlled by the blockchain system, not by people or organizations.
Obtaining Dai and Running the CDP contracts
There are two ways to obtain Dai. You can buy them on cryptocurrency exchange, or you can start a CDP (collateralized debt position) smart contract. What you need to do is to initiate a CDP contract by putting some other digital currency as collateral with Ether being the obvious choice as the Maker system is run on Ethereum platform. In return, you get a sum of Dai according to your collateral that you can get back for the same amount of Dai.
Dai Non-volatility and Loss Prevention Mechanism
If the price of your collateral suddenly goes down to the point that is stipulated in the contract, it will be sold by the system to prevent any further damage. In case of a sharp price fall down the platform will regulate the losses by issuing new Makercoin tokens and selling them to the public to cover the losses.