|Market Cap||$ 158.7M|
|Volume 24h||$ 518.0|
The current price of cDAI is $ 0.02256280, reflecting a increased of +0.09% in the last 24 hours. It's important to note that cDAI's value can be closely related to the underlying asset, DAI, and the interest rate provided by the Compound protocol.
cDAI is a token that represents a balance in the Compound protocol. When users deposit DAI, a stablecoin pegged to the US dollar, into the Compound platform, they receive cDAI in return. This token accrues interest over time, allowing holders to earn yields on their deposits without having to manage their investment actively.
The Compound protocol, which issues cDAI tokens, was created by Compound Labs, Inc. It was founded by Robert Leshner and Geoffrey Hayes in 2017 with the goal of creating open financial infrastructure.
When DAI tokens are supplied to the Compound protocol, the system automatically mints an equivalent amount of cDAI based on the current exchange rate between DAI and cDAI. Over time, this exchange rate increases as interest accrues, meaning each cDAI represents a growing quantity of DAI. To withdraw the original DAI plus accrued interest, a user simply returns the cDAI tokens to the Compound protocol.
cDAI is unique because it represents a lending relationship within the Compound protocol. Unlike traditional tokens, which have a static value, the value of cDAI grows over time as it earns interest. This makes it an interesting financial instrument for those looking to earn passive income on their cryptocurrency holdings.
Interest on cDAI accrues continuously based on the borrowing and lending activity within the Compound protocol. As borrowers pay interest on loans of DAI, a portion of that interest is distributed to all cDAI holders. The interest rate is variable and changes with market conditions.
The Compound protocol is a decentralized finance (DeFi) platform on the Ethereum blockchain that allows users to lend and borrow a variety of cryptocurrencies. It automatically adjusts interest rates based on supply and demand, and provides cTokens (like cDAI) to represent users’ balances in the protocol.
The Compound protocol is built on the Ethereum blockchain, which uses a proof-of-work (soon to transition to proof-of-stake) consensus mechanism to secure its network. Additionally, the Compound protocol undergoes regular smart contract audits to ensure the security of its users' funds.
The circulating supply of cDAI is 7.0B, and it does not have a total supply limit. The supply of cDAI tokens is elastic and directly related to the amount of DAI deposited into the Compound protocol.
cDAI is intrinsically linked to DAI as it is created when users deposit DAI into the Compound protocol. The value of cDAI is dependent on the amount of accrued interest, thus it is a reflection of the lending and borrowing demand for DAI within the protocol.
cDAI can be obtained by depositing DAI into the Compound protocol. While it is not typically traded like other cryptocurrencies, it can sometimes be found on decentralized exchanges. However, cDAI is primarily acquired through interaction with the Compound platform. The primary purpose of cDAI is to represent an interest-earning deposit on the Compound platform rather than to function as a tradable asset in the market.