xDai

xDAI

xDai is the native currency of the Gnosis Chain. It is also a derivative of the Dai stablecoin and is pegged to the US Dollar

Risk Rating
Average
$1.01
0.98%
What is xDai?
What we like
xDAI serves two major purposes on the Gnosis chain: one as a stable source of value and one to pay for transaction or gas fees.
What we like less
xDAI is minted by locking DAI stablecoin on the xDai bridge which exposes token holders to bridging risks. The locked DAI is also redeposited into third-party platforms like Compound which adds layered risk.
What it means for you
Offers you additional utility with your DAI to be used as a the native currency to pay for transaction fees on Gnosis Chain.

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Information
Blockchain
  • Gnosis
Info
Key Metrics
  • Fully Diluted Valluation: $78.1M
  • Total Supply: 77,510,598
  • Volume (24H): $307.4K
  • ATH: $9.92 (01/29/2023)
  • ATL: $0.18 (09/09/2022)
Risk Assessment
Average
Asset Strength

xDAI is a low-cap asset that represents the protocol`s native governance or utility token. This asset is exposed to the underlying risks of xDai Bridge, a protocol rated as Watch out.

xDAI is a stablecoin that trades within 100bps of its peg to USD, making it a somewhat volatile store of value.

Dependencies
Asset Tokenomics

xDAI has an uncapped supply but has inflation control or burn mechanisms in place. xDai is fully collateralized by DAI locked in the xDai Bridge on the Ethereum Chain, and is thus a stablecoin.

Asset Volatility

xDAI is a stablecoin that trades within 100bps of its peg to USD, making it a somewhat volatile store of value.

Things to know about xDAI

What is the Gnosis Chain?

Gnosis Chain (previously xDai Chain) is an Ethereum-based sidechain that uses its own Proof-of-Stake (PoS) consensus model. The purpose of Gnosis chain is to significantly improve the user experience through lower gas fees and faster transaction speeds. Gnosis Chain is powered by a two-token system consisting of the GNO token and the xDAI token. GNO is the native blockchain token that is used to power the blockchain network and secures the chain through user staking and governance. xDAI is a stablecoin pegged to DAI that is used to pay for transaction fees on Gnosis Chain. The use of a stablecoin as the native currency for gas fees is preferred since it helps keep transaction fees low and also serves as a reliable form of payment as it is pegged to 1 USD.

How is xDAI minted?

Users cannot directly buy xDAI. The only way to mint new xDAI is by bridging DAI from the Ethereum mainnet through the xDai bridge. The bridge will lock the DAI in a smart contract on Ethereum and mint an equivalent amount of xDAI on the user's wallet address on Gnosis Chain. To redeem xDAI back for DAI is the reverse process. Users input the amount of xDAI to be burned through the xDai bridge and the equivalent amount of DAI will be released on Ethereum.

Risks of xDAI

The main risk of holding xDAI is that users are exposed to the xDai bridge. The bridge uses a trusted set of validators (4/6 multisig) to confirm deposits for a lock-and-mint mechanism. Token locked in the bridge contract are also redeposited into third-party DeFi platforms like Compound to earn additional interest, which exposes users to additional risks of those protocols.

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xDAI Pools
Maker USD Fee Sharing
8.3%
Yield
$67M
TVL
Risk
C
Protocol
Maker
Chain
Gnosis

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