# DAI

## Definition

DAI is a crypto-collateralized stablecoin associated with the Maker/Sky ecosystem and designed to target a value near one U.S. dollar.

## What it means in practice

Its stability and risk model differ from reserve-backed issuer stablecoins because protocol collateral and governance mechanisms are involved.

## How this concept appears in Terenval Wallet

If DAI is encountered through a compatible EVM dApp, Terenval acts as the signing wallet while the stablecoin mechanics remain external protocol logic.

**Important:** Stablecoin design reduces intended price volatility but does not guarantee a permanent one-dollar market price.

**[Install Terenval Wallet](https://wallet.terenval.com/?lang=en)**

## Related terms

- [stablecoin](https://wallet.terenval.com/glossary/stablecoin/)
- [erc 20](https://wallet.terenval.com/glossary/erc-20/)
- [collateral](https://wallet.terenval.com/glossary/collateral/)
- [smart contract](https://wallet.terenval.com/glossary/smart-contract/)
- [USDC](https://wallet.terenval.com/glossary/usdc/)
- [USDT](https://wallet.terenval.com/glossary/usdt/)

## Related Terenval Answers

- [Can One Crypto Wallet Manage Multiple Blockchains?](https://wallet.terenval.com/answers/can-one-crypto-wallet-manage-multiple-blockchains/)
- [How to Send Crypto Safely Between Wallets](https://wallet.terenval.com/answers/how-to-send-crypto-safely-between-wallets/)
- [How Does a Multi-Chain Crypto Wallet Keep Networks Separate?](https://wallet.terenval.com/answers/how-multi-chain-wallets-keep-networks-separate/)

## Sources

- https://ethereum.org/en/developers/docs/standards/tokens/
- https://wallet.terenval.com/info/security/

Official page: https://wallet.terenval.com/glossary/dai/