Using Bitcoin sometimes feels like being in a bad relationship. When things are going well, you feel invincible… but when prices are falling, depression and panic set it.
It’s been a rollercoaster of a ride, but after ten years of volatility – the crypto community is ready to move on to a more stable partner. Someone who is still decentralized and censorship-resistant, but provides more support and stability.
Someone like Dai.
MakerDAO achieved the holy grail of cryptocurrencies with Dai: a censorship-resistant, collateral-backed stablecoin.
By eliminating volatility and the requirement for a trusted intermediary, MakerDAO has created a stable, trustless medium of exchange for a decentralized economy.
Now that the technology is in place, it’s time for Dapps like SportX to do their part in supercharging Dai adoption.
What is Dai?
Before we jump into adoption, let’s take a moment to clarify what makes Dai so special.
Dai is a stablecoin.
One of the most important features of Dai is it’s ability to keep a stable price: 1 DAI = 1 USD. Every unit of Dai is overcollateralized with Ether at a 1:1.5 ratio. Ether is the native token of the Ethereum blockchain and the second most popular token in the world by market cap.
Dai’s stable value coupled with its trustless, censorship-resistant nature make it the ideal stablecoin to fuel a decentralized economy.
Why is Dai important?
Prior to stablecoins like Dai, cryptocurrencies had a highly volatile nature that made them really hard to use. Bitcoin, for example, is notorious for monthly price changes greater than 50%.
To illustrate why this is an issue, let’s take a look at the story of Bob:
Bob is a prediction market user and starts trading with $1000 worth of Bitcoin (BTC). Over the next month, Bob does extremely well and doubles his portfolio to $2000 worth of BTC. Unfortunately the price of BTC had fallen 60% during the year, meaning that even after Bob doubled his account – his BTC would only be worth $800 representing a loss of 20%.
If Bob had been able to use a stablecoin like Dai, his portfolio would still be worth $2000 at the end of the month.
Although the MakerDAO CDP/DAI system is technically impressive, we’ve found that non-crypto users struggle with the complexity. This has hurt Dai adoption by the mainstream population.
With other “stablecoins” like Libra, and Tether rapidly emerging, the MakerDAO community will need to continue to focus on encouraging Dai adoption to establish it as the dominant stablecoin.
Dai adoption is a simple formula consisting of three factors:
Dai Adoption = Irresistible Dapp + Easy Access + Education
In short, the mainstream user knowledge gap can be overcome by giving users a compelling reason to use Dai and lowering the friction to access it. This provides the necessary foundation for mainstream adoption.
How SportX Increases Dai adoption
All bets on SportX are placed in Dai. With the addition of meta transactions in SportX v1, we remove the need for users to pay ETH gas fees.
Keep Reading: SportX Launches V1: The future of crypto sports betting
This means that SportX is the first end-to-end Dai dapp in the world.
Users simply need a Web3 compatible wallet and Dai and they are reading to use SportX. The following three reasons are how SportX fulfills the Dai adoption formula.
1) Irresistible Dapp
In the four months since we deployed SportX Beta, the platform has processed over 670,000 DAI of volume from over 350 users. This proves that demand for Dai as a medium of exchange for prediction market dapps is extremely high.
2) Easy Access
The early success of SportX Beta revealed a key problem: mainstream users have difficulty converting fiat currency directly into Dai. To solve this, we built a bank account to Dai fiat on-ramp directly into SportX.
In addition, SportX has partnered with CoinSwitch to allow users to convert 400+ tokens including BTC, XRP, REP directly into Dai on the SportX Dapp.
SportX is focused on the mainstream sports betting audience, many of which have little knowledge about cryptocurrencies and Dai. When we onboard new SportX users, we use articles like this to teach them:
- Dai’s unique position as a decentralized stablecoin
- How Dai maintains its USD peg
- How to buy, send, and use Dai
As the world’s first end-to-end Dai dapp, SportX has taken a leadership role in promoting Dai access and education to mainstream users.
SportX is the world’s best crypto sports betting exchange, where users bet peer-to-peer against other bettors. Built on Ethereum and powered by Dai, SportX is a decentralized sports betting exchange that always places its users first by giving them ownership. To learn more, visit SportX and click Get Started.