What is CHAI? A Savings Account for DAI

What is CHAI? A Savings Account for DAI

. 2 min read

CHAI is an ERC20 token similar to DAI, however it earns interest from Maker DAO’s Dai Savings Rate (DSR), which is currently 7.75%. It’s extremely close to cDAI, which are the tokens issued for DAI supplied to Compound. The smart contract is named “chai.sol” and any DAI sent to it is deposited into the DSR and CHAI is issued. These tokens can be used exactly the same as DAI normally is transferred, traded and redeemed to unlock the underlying, however they earn interest. The CHAI contract also supports gas-less token transfers.

Three Ethereum developers, Martin Lundfall, Lucas Vogelsang, and Lev Livnev, created the smart contract and interface. Abbey Titcomb created the logo for CHAI. The smart contract was deployed on December 1st, 2019.

As of writing this, 3.6 million DAI is locked up for CHAI by 352 individual addresses. The largest holder of CHAI is bZx’s DAI iToken, controlling 2.5mil or 69.1% of the network.

How do I get CHAI?

The team made it easy to switch your DAI for CHAI. Follow these steps:

1.     Go to Chai.money

2.     Connect your Ethereum wallet with your DAI in it

3.     Choose the amount of DAI you want to convert.

4.     Click the convert button and approve the transaction.

When you are ready to switch back to DAI, select the CHAI -> DAI button and convert back.

Where can I use my CHAI?

Now that the project has been in the wild for a few months, several projects and wallets have integrated CHAI.

  • Cryptocurrency wallet Eidoo has added support for Chai.
  • Sablier allows anyone to send continuously streamed CHAI with their payment protocol.