xDai is a stable token, used for transactions. It is bridged from Dai to the xDai chain, and used on the xDai chain for payments and gas fees. 1 xDai = 1 Dai (and 1 Dai = approximately 1 USD)
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 xDai 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).
From another user on the xDai Chain (Wallet transfer, airdrop, payment)
Converting Dai to xDai using the xDai Bridge
Buying xDai directly with Fiat (coming soon)
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 xDai stablechain enables digital cash, supporting small denomination transactions for everyday, stable purchases.
The xDai bridge is expandable to include additional forms of collateral on the Ethereum side of the bridge. Currently Dai and Chai are both supported (SAI was also supported prior to the shutdown). More may be added in the future. Additional types of collateral can act to mitigate stability risks.
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.