What is cDAI?
cDAi is a Compound asset cToken. Compound was upgraded and now all the tokens have their own contracts, termed asset gateways, which suggests that depositing tokens into Compound, the holders earn cTokens – ERC20 that show loaning or stock offset and the interest they have built up. Now, providing Dai to Compound in v2, you’ll get Compound Dai in return. The trade price started at 50 cDai for every1 Dai, and while interest accumulates inside the store, every single cDai costs more Dai. The concept suggests that alongside the user's interest increase, he needs less cTokens to purchase his primary investment. This means the transaction charge within Dai and cDai increases correspondingly with the profit price. Compound tokens have created a lot of different new options for utility and refinancing. Each asset that beforehand stayed stuck in Compound, now can move around the system and be used for various goals. The users can exchange, purchase, or forward cDAi to passive store which means any project where the user can lock tokens accepts cTokens as well. Thus, just by having and possessing on cDAI tokens, the users can earn inactive earnings in DeFi protocols.