What could affect the price of DAI?
DAI’s dollar peg is being tested by changes in governance, risks in decentralized finance (DeFi), and new regulations.
- Governance & Stability Fee Changes – MakerDAO’s policy updates could affect how much DAI is in circulation.
- DeFi Hacks Impact – Large DAI movements by hackers might strain liquidity.
- Stablecoin Regulations – New U.S. laws could change how DAI manages its backing assets.
Deep Dive
1. MakerDAO Governance Changes (Mixed Effects)
Overview:
MakerDAO recently shifted to the Sky Protocol (renamed in 2024) and introduced SKY/USDS tokens, but DAI is still widely used. In June 2025, votes to lower Stability Fees on Ethereum-backed vaults led to a 12% increase in DAI issuance (source). Future decisions, like adding new types of collateral or adjusting savings rates, will influence how much DAI is created and how stable its value remains.
What this means:
Lower fees encourage borrowing, which increases DAI supply and might weaken its dollar peg if demand doesn’t keep up. On the other hand, adding real-world assets as collateral could strengthen confidence in DAI. Historically, DAI’s peg stays stable when governance carefully balances incentives to borrow with risk management.
2. DeFi Hacks & Market Liquidity (Potential Downside)
Overview:
Hackers involved in the $53 million Radiant Capital exploit converted stolen Ethereum (ETH) into DAI, selling about 9,631 ETH for $43.9 million in DAI in August 2025 (Crypto.News). Large, sudden sales like this can put pressure on liquidity pools, risking temporary breaks in DAI’s peg if traders can’t absorb the volume quickly.
What this means:
DAI’s built-in stability tools, like adjusting the Savings Rate, usually help restore balance. But repeated shocks like this could reduce trust in decentralized stablecoins compared to centralized ones like USDC.
3. Regulatory Oversight & Compliance (Mixed Effects)
Overview:
The U.S. GENIUS Act, passed in July 2025, sets strict rules on reserves and transparency for stablecoins. While DAI’s decentralized setup avoids direct regulation, it depends on USDC—a centralized, regulated stablecoin—for about 35% of its collateral (S&P Report). This reliance creates regulatory risks.
What this means:
Pressure on centralized reserves like USDC might push MakerDAO to diversify its collateral, possibly adding complexity. However, successfully adapting by including assets like tokenized U.S. Treasuries could attract more institutional investors.
Conclusion
DAI’s ability to maintain its dollar peg depends on MakerDAO’s governance balancing supply growth with risk controls, handling volatility from hacks, and meeting regulatory requirements. While DAI’s decentralized nature offers strength, its partial reliance on centralized collateral (USDC) and competition from other stablecoins (like MetaMask’s upcoming mUSD) present challenges. Will Sky Protocol’s governance upgrades keep pace with regulatory and market pressures? Keep an eye on DAI’s collateral mix and liquidity on the blockchain.
What are people saying about DAI?
DAI is caught between being a favorite in decentralized finance (DeFi) and a tool used by hackers — combining stablecoin usefulness with some risky drama. Here’s what’s happening now:
- Hackers are using DAI to launder stolen Ethereum (ETH)
- DAI remains a top stablecoin with a $3.6 billion market cap
- Some exchanges are removing DAI, sparking debates about decentralization
Deep Dive
1. @OnchainLens: DAI’s involvement in a $45 million hack raises concerns bearish
"Coinbase hacker holds $45.36M DAI across wallets after swapping stolen ETH"
– @OnchainLens (12.3k followers · 58k impressions · 2025-07-07 09:06 UTC)
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What this means: This is a negative sign for DAI’s reputation. High-profile hacks using DAI could lead to increased government scrutiny. However, because blockchain transactions are transparent, the overall system risks are somewhat limited.
2. @TrustWallet: Growing interest in earning yield with DAI is positive news bullish
"Turn idle DAI into yield directly in your wallet – no spreadsheets needed"
– @TrustWallet (4.2M followers · 890k impressions · 2025-07-13 16:11 UTC)
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What this means: This is good for DAI’s adoption. Easy-to-use products that let people earn interest on their DAI without complicated steps could make it more popular. But relying on third-party platforms carries some risks related to smart contracts.
3. Bitvavo: European exchange Bitvavo removes DAI neutral
Delisting DAI on 2024-12-20 due to "shifting user preferences"
– Bitvavo Team (Corporate account · 12k impressions · 2024-12-17 11:49 UTC)
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What this means: This is neither strongly positive nor negative. While it limits access to DAI on centralized exchanges, it fits with DAI’s goal of being decentralized. Keep an eye on whether other regulated exchanges follow this trend.
Conclusion
The overall view on DAI is mixed — it’s praised for its role in DeFi but also faces criticism for being used in illegal activities. DAI has maintained its $1 value peg since 2017 (according to CoinMarketCap data). Watch the ETH/DAI trading pairs for unusual activity that might indicate big traders moving funds or stress in the system. The big question remains: does the benefit of decentralized stability outweigh the risks that come with some centralization?
What is the latest news about DAI?
DAI continues to hold its position as a leading stablecoin, navigating security challenges and changes in the crypto ecosystem. Here are the key updates:
- Radiant Capital Hacker Makes $41M Profit (August 20, 2025) – A hacker turned a $53 million theft into $94 million by trading ETH and DAI.
- MetaMask Introduces mUSD Stablecoin (August 14, 2025) – A new stablecoin backed by Stripe and Blackstone aims to compete with DAI by offering DeFi yield opportunities.
- Ethereum Foundation Wallet Converts ETH to DAI (August 15, 2025) – A $28 million ETH-to-DAI swap sparks discussions about treasury management strategies.
In-Depth Look
1. Radiant Capital Hacker Makes $41M Profit (August 20, 2025)
Summary:
In October 2024, a hacker linked to North Korea exploited Radiant Capital, stealing $53 million in assets. By holding Ethereum (ETH) as its price rose to around $4,750 and swapping some of it into DAI, the hacker increased their holdings to $94 million. Despite investigations by the FBI and blockchain analytics firm Chainalysis, the stolen funds have not been recovered.
What this means:
This situation shows that DAI is widely used as a liquid asset—even in illegal activities. It also highlights ongoing security risks in decentralized finance (DeFi). The hacker’s large amount of DAI (about 35 million) could temporarily impact how much DAI is circulating in the market. (Crypto.News)
2. MetaMask Introduces mUSD Stablecoin (August 14, 2025)
Summary:
MetaMask announced mUSD, a new stablecoin designed to generate yield for users by investing reserve assets like U.S. Treasury bonds. The project is supported by major companies like Stripe and Blackstone and aims to compete with DAI in the DeFi space.
What this means:
While this new stablecoin doesn’t immediately threaten DAI, its strong backing and MetaMask’s large user base (around 100 million users) could challenge DAI’s position in yield-focused applications. Additionally, regulatory support through the GENIUS Act may help mUSD gain traction faster. (Yahoo Finance)
3. Ethereum Foundation Wallet Converts ETH to DAI (August 15, 2025)
Summary:
A wallet previously associated with the Ethereum Foundation sold 6,194 ETH for $28.36 million in DAI, at roughly $4,578 per ETH. The Foundation clarified it no longer controls this wallet but confirmed that using DAI is part of a strategy to diversify its treasury holdings.
What this means:
This move suggests confidence in DAI’s stability, as large organizations use it to secure profits. However, frequent sales of ETH might indicate caution about the volatility of cryptocurrencies, which could indirectly benefit stablecoins like DAI. (CoinMarketCap Community)
Conclusion
DAI remains a key player in DeFi liquidity despite challenges from hacks and new competitors. Its decentralized governance and collateral system are being tested, but both institutional actions and hacker activity show that DAI continues to be a valuable tool. The question remains: will mUSD’s focus on yield reduce DAI’s dominance, or will regulatory support help all stablecoins grow together?
What is expected in the development of DAI?
Dai’s roadmap is focused on improving its technology, expanding to more blockchain networks, and meeting regulatory requirements.
- Rebrand to USDS (Q4 2025) – Dai will become USDS under the new Sky Protocol.
- Cross-Chain Liquidity (2025) – Dai will be available on more blockchain networks.
- FRAX Integration (Q3 2025) – Partnering with Frax Protocol to increase liquidity.
- Governance V2 (Q4 2025) – Making decision-making more efficient and decentralized.
- Regulatory Compliance – Aligning with global rules like MiCA.
Deep Dive
1. Rebrand to USDS (Q4 2025)
Overview: MakerDAO plans to upgrade Dai by rebranding it as USDS under the Sky Protocol (Bitverse). This update aims to improve how the system is governed and make it easier to use, while keeping the stablecoin’s value tied to the US dollar. Current Dai holders can swap their coins for USDS at a 1:1 rate.
What this means: No major changes for Dai users right away since liquidity and usage stay the same. Over time, if USDS gains popularity, it could boost decentralized finance (DeFi) growth.
2. Cross-Chain Liquidity (2025)
Overview: Dai will expand its presence to other blockchain networks like Polygon, Arbitrum, and Optimism. This makes it easier for users to trade and use Dai across different platforms. Partnerships with services like VeloraDEX aim to tap into a daily trading volume of over $150 million.
What this means: Positive for Dai’s usefulness because it reduces barriers for trading and lending across multiple blockchains.
3. FRAX Integration (Q3 2025)
Overview: The roadmap includes working with Frax Protocol to share liquidity pools and combine yield strategies (genius_sirenBSC). This collaboration could attract more users by offering new ways to earn returns.
What this means: Good for Dai demand, but managing multiple collateral types can be complex and carries some risks.
4. Governance Module V2 (Q4 2025)
Overview: The governance system will be upgraded to encourage more participation by allowing vote delegation and using quadratic voting. This comes after criticism about too much control being held by a few individuals, including co-founder Rune Christensen (The Defiant).
What this means: Could improve decentralization and decision-making, but success depends on how well these changes are implemented.
Conclusion
Dai’s roadmap aims to balance new features like USDS and cross-chain support with stability through governance improvements and regulatory compliance. The move to USDS and the partnership with Frax could change how Dai fits into the DeFi ecosystem, while following regulations helps ensure its future. Will USDS’s rebranding help Dai compete with centralized stablecoins like USDC? Keep an eye on adoption rates and governance activity for answers.
What updates are there in the DAI code base?
DAI’s technology has been updated to improve stability and work better across different blockchain networks.
- DAI to USDS Migration (2024–2025) – USDS was introduced as a new stablecoin that can be swapped 1:1 with DAI.
- Signature-Based Approvals (2022) – Users can now approve transactions without paying gas fees by using signed messages.
- Multi-Chain Support (2025) – DAI is now available on Ethereum, BNB Chain, and Layer 2 networks for faster, cheaper transactions.
Deep Dive
1. DAI to USDS Migration (2024–2025)
Overview:
DAI launched USDS as part of MakerDAO’s rebranding to Sky Protocol. USDS keeps the same 1:1 value with the US dollar but adds new features like built-in savings rates.
What this means:
This change doesn’t negatively affect current DAI users since they can easily convert between DAI and USDS through smart contracts. However, new users might prefer USDS because of its extra benefits. (Source)
2. Signature-Based Approvals (2022)
Overview:
With DAI’s permit() function, users can approve token transfers by signing messages off-chain. This means they don’t have to pay gas fees (transaction costs) when interacting with decentralized finance (DeFi) apps.
What this means:
This is a positive development for DAI because it makes using DeFi apps easier and cheaper, especially for activities like lending or borrowing. (Source)
3. Multi-Chain Support (2025)
Overview:
DAI is now supported on multiple blockchains, including BNB Chain, Polygon, Arbitrum, and Optimism. This allows users to make transactions faster and with lower fees by using bridges and Layer 2 solutions.
What this means:
This expansion is good news for DAI because it increases access and liquidity across different platforms, benefiting use cases like decentralized gambling, trading, and payments. (Source)
Conclusion
DAI’s updates focus on making the stablecoin more interoperable (through USDS migration and multi-chain support) and improving user experience (with gasless approvals). It will be interesting to see how other stablecoins respond to DAI’s mix of backward compatibility and new features.