When we first built OpenSea, we decided to construct the experience around Ethereum, as a dapp platform and as a currency. It was the simplest option. Because most users already had some ETH, if only to pay gas, it provided an economic lingua franca. And it allowed us to streamline a new and unfamiliar buying experience. But all along, we’ve been excited about the entire token economy and we intend to grow with the maturing ecosystem and userbase.
For the initial ERC-20 rollout, we’re supporting MakerDAO’s Dai, Coinbase’s and Circle’s USDC, and Decentraland’s MANA, but we’ll be adding support for more ERC-20 tokens soon. Join us in our discord server to request your favorite token and be sure to check out our announcement of MANA support.
Auction and bid on NFTs using Dai
Dai is an ERC-20 token with some remarkable qualities. First of all, it’s a stablecoin, which means that its value is protected against some of cryptocurrency’s notorious price swings. This is not the case for all stablecoins, but Dai is pegged to the price of one US Dollar. It won’t always have that exact value, but you can rest assured that it will stay within a few percentage points of that mark.
Further, Dai is decentralized and backed by collateral; it’s more than just smoke, mirrors, and shared illusion. Dai isn’t merely covered by US dollars held in a single bank account and subject to seizure. The collateral backing Dai consists of Ethereum and ERC-20 tokens, with all the attendant benefits we’ve come to appreciate. Dai is collateralized at around 150%, which means that every Dai is backed by about $1.50 worth of assets. Currently, the global Ethereum community has used MakerDAO’s software to lock up over $200,000,000 in collateral.
In short, Dai is a token worth a dollar. When you see Dai, think dollar. For more information, check out this video from MakerDAO about how Dai maintains its price.
And now you can use Dai on OpenSea! You’ll find some items already listed for Dai instead of ETH. You can buy one immediately by clicking ‘Buy Now’ and paying in Dai, pretty much like you would when making a purchase with ETH. If you don’t have any Dai, you can make an offer in the currency of your choice by clicking the ‘Make Offer’ button and selecting your preferred currency from the dropdown next to the entry field. Or you can acquire some Dai on exchanges like AirSwap and Radar Relay.
To list an item for sale in Dai, click ‘Sell’ on the item’s page, select ‘Dai’ from the dropdown next to the price entry field, specify your desired price, then click ‘Post Your Listing’.
And as always, OpenSea users can buy, sell, and bundle items with ETH or make offers on items (even on unlisted items!) with WETH. OpenSea still offers the features you’ve come to know, but now with more flexibility and the option to use a more familiar pricing scheme.
Why use Dai?
First, you can be sure that the price of your item will follow a predictable trend over time; you’re hedged against some platform risk. When market forces act on an item priced in Dai, the item finds a price closer to its true value, not a price that factors in the market’s assessment of ETH. Second, Dai’s peg to $1 reduces the cognitive burden associated with making a purchase. If you’re uncertain about pricing your item in Dai, consider the possibility that buyers might feel happier and more relaxed when looking at an NFT priced in a deeply familiar unit of account. Finally, if you’re a tax-paying whale like Phil, it will be easier, faster, and cheaper to account for your gains in Dai than in it would be in ETH.
Power your in-game economy with its own token
Interested in getting in on the action? Developers will be able to use our SDK to create in-app marketplaces where users can buy and sell NFTs using DAI or their own in-game currencies. For more information on setting up native token support in your marketplace, check out our docs or chat with us in Discord.