Single Collateral DAI

Single Collateral DAI (SAI) was the initial version of the DAI stablecoin, launched by MakerDAO. It was a decentralised cryptocurrency pegged to the US dollar, designed to maintain a stable value. Unlike its successor, Multi-Collateral DAI (MCD), SAI was backed exclusively by Ethereum (ETH) as collateral. The system relied on smart contracts on the Ethereum blockchain to manage the creation and redemption of SAI.

Single Collateral DAI (SAI) was primarily used to provide stability in the volatile cryptocurrency market by maintaining a consistent value equivalent to the US dollar. It enabled users to leverage their Ethereum holdings without selling them. Users could lock ETH in MakerDAO's smart contracts and generate SAI, which could then be used for trading, purchasing goods and services, or participating in other decentralised finance (DeFi) applications. SAI also allowed users to hedge against the volatility of ETH while retaining exposure to the asset.