xDai Native Coin/Token FAQ

What is the main function of the xDai coin?

xDai is a stable token, used for transactions. It is bridged from Dai to the Gnosis chain, and used on the Gnosis chain for payments and gas fees. 1 xDai = 1 Dai (and 1 Dai = approximately 1 USD)

How are xDai coins minted?

xDai is created from the stable Dai token - Dai is locked in a bridge contract and the same amount of xDai is minted on the Gnosis Chain. xDai can then be transformed back into Dai using the same bridging mechanism (xDai is burned and Dai is minted on the Ethereum Mainnet).

How can I get xDai coins?

What makes the xDai coin a different kind of stablecoin?

Imagine every time you needed to pay for lunch you had to use 2 different currencies. On top of that, one of those currencies was not stable, so you didn’t know if you would have to pay an extra $.05 or an extra $.50 in fees for the same $10.00 lunch.🍔
This is what happens every time you use a stablecoin on the Ethereum mainnet. xDai eliminates this issue - transaction fees are stable and very low (500 or so for $.01). Because they are known & low costs, this also enables stable micro-transactions, which is important for contracts and projects who need to plan for application costs.
The Gnosis Chain enables digital cash, supporting small denomination transactions for everyday, stable purchases.

How can you mitigate stablecoin-based risks (like broken stability pegs) with xDai?

The xDai bridge is expandable to include additional forms of collateral on the Ethereum side of the bridge. Additional types of collateral can act to mitigate stability risks, and may be introduced in the future.

Are xDai or STAKE tokens considered securities?

Based on our research and legal opinions they are not considered securities. However, the regulatory landscape may differ between countries. Please be informed of your local laws when using.