The recent Ether (ETH) price drop showed the reliability and weaknesses of the decentralized stablecoin built by MakerDAO, Dai (DAI), and the decentralized finance (DeFi) ecosystem built on top of it.
Ethereum-collateralized decentralized stablecoin DAI managed to maintain its peg to the United States dollar as Ether lost over 18% of its value in under two hours, falling from $190 to $155 yesterday. As of press time, Ethereum holds a price of about $171.