### What is cDAI?

cDAI, or Compound DAI, is a cryptocurrency issued by the Compound Protocol. It is a representation of DAI that has been lent through the Compound Protocol, a set of smart contracts on the Ethereum blockchain. Holding cDAI allows users to earn interest on their DAI deposits while influencing the liquidity of the lending platform.

### How does cDAI work?

cDAI functions as an interest-generating token within the Compound lending protocol. When users lend DAI to the Compound Protocol, they receive cDAI in return. This token represents their claim on the original DAI deposit plus any accrued interest. The Compound Protocol sets interest rates algorithmically based on supply and demand dynamics for the assets. As interest accumulates, the exchange rate between cDAI and DAI increases, reflecting the earned interest.

### What are the potential use cases for cDAI?

The potential use cases for cDAI mainly revolve around decentralised finance (DeFi). These include:

- **Lending and Borrowing:** Users can lend their DAI to earn interest, or use DAI as collateral to borrow other assets.
- **Stablecoin Applications:** As a stablecoin pegged to the USD, cDAI can be used in e-commerce, financial transactions, and as a store of value.
- **Liquidity Mining and Yield Farming:** Users can participate in liquidity mining to earn additional rewards, leveraging cDAI's interest-earning capabilities.
- **DeFi Protocol Integrations:** cDAI can be used across various DeFi platforms, allowing for additional profit opportunities and seamless asset management.

### What is the history of cDAI?

cDAI was created as part of Compound Protocol’s initiative to facilitate decentralised lending and borrowing of digital assets. The protocol was founded in 2017 by Robert Leshner and Geoffrey Hayes. Initially detailed in a whitepaper in 2018, Compound launched its V2 version in 2019, which included support for multiple crypto assets like DAI. In 2020, the Compound protocol introduced the COMP token to enable community governance, marking a pivotal evolution in its operational structure. Over time, the protocol has expanded its asset pool and refined its governance and interest rate models, solidifying cDAI's role in DeFi.

cDAI

Deposits are not currently available for this coin.

Important Notice

Lido Staked Ether

Uniswap

Aave

Maker

NEXO

Injective

Curve DAO

Four

Rocket Pool ETH

DeXe

Raydium

Lido DAO

PancakeSwap

Pendle

Kava.io

THORChain

cDAI (CDAI)

Similar Coins

STETH

DAI

UNI

AAVE

MKR

NEXO

INJ

CRV

FORM

RETH

DEXE

RAY

LDO

CAKE

PENDLE

KAVA

RUNE

Resources

cDAI (CDAI) Price Index

cDAI Price

Trading volume

Market cap

Resources