Turning DAI into a Global Currency: Using DAI as the Medium of Exchange of Choice for On-chain Financial Transactions on OpenLaw
The future of the commercial process in DeFi is powered by OpenLaw. OpenLaw integrates MakerDAO’s Dai stablecoin to create smart financial transactions and others on OpenLaw Finance.
One of the reasons that the US Dollar supplanted gold as a global standard is because most global contracts are denominated in U.S. Dollars. For blockchain-based digital assets to achieve their vision of serving as a global, universal available “currency,” a digital asset must not only be stable, but also be primarily used to settle commercial transactions in both the financial and non-financial realms.
In the Ethereum community, great strides have been made in solving stability issues with native protocol level assets, like Ether. These “stablecoins” hold out the hope of making blockchain-based commerce transactions more accessible to parties that may be reluctant to expose themselves to token-based price volatility in commercial transactions.
The first and major stablecoin to emerge is MakerDAO’s Dai, which achieves stability by being tied to the value of underlying digital assets. Today stablecoins are primarily used for margin trading of digital assets, but that is just the beginning. With OpenLaw Finance, stablecoins can be used to settle real-world transactions and can be denominated in contracts.
To that end, we’ve integrated Dai into OpenLaw Finance to show how Dai can be used as the medium of exchange for legally compliant tokenized securities, fixed income products, tokenized real estate, and smart derivatives. As a result, anyone can now manage their blockchain-based financial transactions using OpenLaw’s open-source tools. Dai can continue its path towards achieving a status as a global currency.OpenLaw Finance “Smart” Transactions Using Dai
Below is an example of how anyone can create a “smart d...