DAI is an Ethereum-based stablecoin managed by the Maker Protocol and MakerDAO decentralized autonomous organization. Its price is soft-pegged to the U.S. dollar and is collateralized by a mix of cryptocurrencies deposited into smart-contract vaults when new DAI is minted. There are two versions of DAI: Multi-Collateral DAI (launched in November 2019) and Single-Collateral DAI (SAI). The former can be collateralized by various cryptocurrencies, while SAI could only be backed by one. Unlike SAI, Multi-Collateral DAI supports the DAI Savings Rate, allowing users to earn savings by holding DAI tokens. This innovative approach combines traditional financial mechanisms with decentralized blockchain technology, providing stability and utility in the cryptocurrency space.