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title: Asset Onboarding Application - $DAI

---

# [Asset Onboarding Application] $DAI - Dai Stablecoin (Wormhole)

Author(s): keneeze and bobby
Tags: asset-onboarding
Asset Name: $Dai Stablecoin (Wormhole)
Asset Code: $Asset-Code
Submission Date: $MM-DD-YY
Ratification Date: $MM-DD-YY
Status: $Status
Forum URL: 

## Application Profile
**1. What is your motivation for submitting this application?**

As Jet Protocol continues to grow daily, it is important for users to be able to interact with a diverse range of assets, in this case we are trying to onboard the DAI Stablecoin, considering the current market downturn, access to stablecoins is practically a necessity.
DAI is arguably of DeFi’s battle tested stablecoins, with its obvious product market fit and accompanying liquidity, the Maker DAO designed stablecoin can definitely provide value to the Jet Protocol ecosystem.

#### 2. What is your association with the proposed asset?

StableNode is a delegate in a number of protocols including Maker DAO, the makers of the DAI Stablecoin.

#### 3. What are the key benefits for the Jet Protocol to onboard the asset?

Jet Protocol is in the business of Lending and Borrowing, by adding DAI to its list of assets, Jet Protocol will enable users the opportunity to interact with a battle tested stablecoin that has proven liquidity and a stable peg, the utility of the DAI stablecoin reaches far beyond the Ethereum ecosystem and this addition would do a good job of capturing more users who are more comfortable using ethereum native stablecoins, a good example of this is the success of USDC on the Solana Blockchain.
With 1,387,958 active holders and a daily transaction volume well over 1 Million Dollars on protocols such as Orca, Serum, Radium and Aldrin, USDC has proven to be quite successful on Solana.

#### 4. What are the known limitations of the asset?
Considering that it is a stablecoin, its limitations could be related to its use as legal tender under certain circumstances dependent on regulatory context.

## Project Profile

#### 1. Please provide a brief, high-level description of the asset's native ecosystem (project), including protocol's type (peer-to-peer/ peer-to-liquidity/ etc.).
DAI is an Ethereum Native Over-Collateralized Stablecoin built by Maker DAO Protocol and managed by the Maker DAO Community through Governance.

#### 2. Who are the founding members? What is their current involvement with the project?

Maker DAO was founded by Rune Christensen, Rune does not currently occupy any particular leadership position at Maker DAO.
#### 3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).
Date of Creation: December 2017
Initial price and valuation: $1
Total capital raised: Not reported for DAI
#### 4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?
N/A

#### 5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?
DAI is minted through an over-collateralized vault mechanism, there were no Pre-ICO investors

#### 6. What is the current token distribution (project team vs. investors vs. public)?
DAI is freely mintable by anyone, there was no predetermined distribution.

#### 7. Are there any fees generated by the protocol? If yes, please provide details and amounts.
Maker DAO imposes stability fees on the vaults used to mint DAI. The Stability Fee is a variable-rate fee continuously added to a Vault owner’s generated Dai balance.
The Stability Fee is continuously compounding interest at a growth rate of x% per second.
Stability Fees are a Risk Parameter designed to address the inherent risk in generating Dai against collateral in Maker Vaults.
A portion of the Stability Fee is diverted toward sustaining the operation of the Maker Protocol, which includes the DSR, Risk Teams, and other costs associated with maintaining the protocol.

#### 8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.

Maker DAO has been audited by three leading security firms: Trails of Bits, Peckshield and Runtime verification, these audit firms focus on various areas, to learn more about this check out the Audit Reports here.

#### 9. Is the protocol open source? If yes, please provide links to the repository.

Yes, Maker DAO is open source.

#### 10. Other relevant project data or comments:
N/A

## Asset Profile

#### 1. Asset name: DAI Stablecoin (Wormhole)

#### 2. Asset type: Wrapped

#### 3. One-sentence description of the asset:
DAI is an over-collateralized stablecoin that allows traders advantages of trading blockchain-based assets while mitigating price risk and preventing high volatility during market downturns.

#### 4. What's the purpose of the asset within its native ecosystem?
DAI provides massive utility to the native Ethereum ecosystem. The value of DAI is pegged to that of the United States dollar. Investors have been motivated to view DAI as not only a stable store of long-term value, but also a viable option for day-to-day transactional purposes as a result of the increased price stability afforded by DAI stablecoins. This has resulted in a greatly expanded utility of blockchain technology and cryptocurrency systems as a whole.

#### 5. Does the asset have any use outside of its native ecosystem (integrated protocols)?
DAI is a popular stablecoins that has integrations across ethereum virtual machine compatible chains such as: Polygon, Binance Smart Chain, Fantom, Avalanche, xDAI, and other Non-EVM compatible chains such as: Polkadot, Cosmos and Solana.

#### 6. Please provide all Smart Contract addresses. If the project is open source, detail how the Smart Contracts are implemented.

## Asset Liquidity

#### 1. What exchange(s) support the asset?
DAI is available on Orca, Serum, Radium and Aldrin

#### 2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)?
No

#### 3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pairs of assets with USDC).
N/A

#### 4. A Pyth oracle is required to successfully onboard an asset to the Jet Protocol. Confirm there is an active Pyth Oracle price feed, or provide insight into the asset's timeline for onboarding to Pyth.
Pyth - Markets

#### 5. How often does the asset drop significantly in price? Please provide a link to the price history.

N/A

#### 6. *For stablecoins only*: Has the asset ever lost the peg? If yes, for what reason?
DAI has been able to maintain a strong peg over the years, never going below $0.97, even in the face of the UST crash, DAI was able to maintain its peg.

#### 7. *For algorithmic stablecoins only*: Please provide details on the risks associated with the design.
N/A

#### 8. *For wrapped assets only*: Which bridges are used? Are they custodial or non-custodial? Are they audited?
N/A

#### 9. What amount of asset's liquidity exists in the integrated protocols (if applicable)?

#### 10. List any parties interested in taking part in liquidations for the proposed asset type?
To the best of my knowledge and research, there are not a significant amount of DAI users on Solana

## Key Mechanics

#### 1. How many active addresses/ users currently hold the asset?
1,387,958 active holders

#### 2. Please provide a brief overview of the tokenomics.
DAI is minted through a Debt Collateralized Position maintained by the user. Through the establishment of a collateralized debt position (CDP), in which a user pledges their ethereum (ETH) as collateral, anyone has the ability to create additional DAI tokens. The owner is then permitted to withdraw from the CDP a quantity of DAI tokens from the CDP that is either less than or equal to the collateralization ratio.

#### 3. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?
Because the supply of DAI is determined by how much DAI can be minted subject to the collateralization ratio, which is determined by Maker DAO, the increase or decrease of DAI in circulation is a function of protocol governance and macroeconomic conditions,
The minting mechanism requires that a Debt Collateral Position be maintained in order to mint for DAI.
The burn mechanism on the other hand simply involves exchanging DAI for fiat currency.

#### 4. Please explain the staking mechanism (if any).
N/A

#### 5. Please explain the slashing mechanism (if any).
N/A

#### 6. Are there tokens on the vesting schedule? If yes, what is that schedule and related vesture limitations?
N/A

#### 7. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?
It is possible that other projects use DAI for liquidity mining.

## Legal Profile

#### 1. Is the project or the asset owned by any incorporated organization?
No

#### 2. In which jurisdictions was the token issued?
N/A

#### 3. Was the token issued as part of the regulatory process (e.g. securities offering)?
No it was not

#### 4. Was the token issued as part of the fundraising process?
N/A

#### 5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.
No it has not

#### 6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.
$30M MakerDAO 'Black Thursday' Class-Action Lawsuit Annulled as Parties are Bound to Resolving Disputes through Arbitration

## Links

#### Link to project’s white paper:
https://makerdao.com/en/whitepaper/

#### Link(s) to active communities related to the project:
https://discord.com/invite/RBRumCpEDH
https://forum.makerdao.com/

#### Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
https://github.com/makerdao

#### Link(s) to audits - both procedural and Smart Contracts:
https://security.makerdao.com/audit-reports

#### Link(s) to legal opinions:
https://secsearch.sec.gov/search?affiliate=secsearch&sort_by=&query=Maker+DAO

#### Link(s) to other legal material:
https://www.bloomberg.com/news/newsletters/2022-09-01/makerdao-gets-existential-after-tornado-cash-ban
https://arxiv.org/pdf/2203.16612.pdf
https://hackmd.io/@MIP-Editors/SyRUfyWqq

#### Other relevant links:
*

#### List all relevant Solana addresses here:
FYpdBuyAHSbdaAyD1sKkxyLWbAP8uUW9h6uvdhK74ij1