DAI Stablecoin Now Available to New York Traders via Coinbase Pro
After getting added to Coinbase Pro in late 2018, DAI and MKR are opening up to New York traders.
Coinbase Pro lifted the limitations for DAI, the stablecoin linked to Maker DAO (MKR), and now New York residents can access the asset and its trading pairs.
DAI is one of the few widely distributed algorithmic stablecoins, meaning their value is supported by cryptocurrency-exchange operations. Currently, DAI hovers around $0.99. There are more than 91 million coins, with a daily turnover of $27 million.
DAI offers an alternative for trading pairs, though it lags behind other stablecoins, with a lower influence and liquidity. DAI trades in 98 pairs in total, and is used in decentralized exchanges and niche markets.
Maker, the organization behind DAI, has gone through an evolution and so far manages to keep the dollar peg. But the experience shows that keeping an algorithmic stablecoin has proven to be difficult. Maker started off with a small interest on taking out a MKR loan and generating DAI, but over time, the effective interest rate peaked at 19.5%.
Maker organized a series of votes to lower the rate to 14.5% but later needed another upward hike. Currently, a vote has been opened to suggest stability fees between 13.5% and 21.5%:
The Maker fund is one of the biggest holders of Ethereum (ETH) as collateral, though the promised multi-collateral DAI issuance has not arrived yet.
The DAI stablecoin will also be usable on CelerX, the gaming branch of Celer Network (CELR).
The Maker organization and approach to stability fees has been met with some skepticism in the past. But the acceptance of DAI despite the regulations of the New York Bitlicense requirements are encouraging.
MKR rose after the news, trading at $742.80. The price rose by more than 25% in the past week. The MKR is one of the exceptional digital assets, with a supply of just 1 million coins, and with a relatively low trading volume.