Stablecoins have transformed the crypto payment landscape by offering price stability while maintaining the benefits of blockchain technology. Among them, DAI stands out as a decentralized stablecoin, ensuring transparency and reliability. With OxaPay’s latest integration, merchants can now start accepting DAI payments on the Polygon network, benefiting from low fees, fast transactions, and seamless integration.This guide explains DAI, why Polygon is ideal for DAI payments, and how to start accepting DAI payments with OxaPay.
What is DAI?
MakerDAO issues DAI as a decentralized stablecoin pegged to the US dollar. Unlike centralized stablecoins such as USDT or USDC, crypto collateral backs DAI instead of traditional financial institutions. Instead of relying on a central entity to manage reserves, DAI uses smart contracts and an over-collateralization mechanism to maintain its peg.
What is a Decentralized Stablecoin?
A decentralized stablecoin maintains a stable value (typically pegged to fiat currencies like the US dollar) while operating independently of any centralized authority, such as a company or government. Instead, decentralized finance (DeFi) mechanisms, smart contracts, and governance models managed by a distributed network of users support it. As a result, this approach ensures:
- Trustlessness – Users do not need to trust a central party to hold reserves.
- Transparency – The collateral backing DAI is visible on the blockchain.
- Censorship Resistance – No single entity can freeze or manipulate DAI transactions.
- Decentralized Governance – MakerDAO token holders vote on system changes and stability mechanisms.
How Does DAI Maintain Its Stability?
Unlike centralized stablecoins that rely on fiat reserves, DAI maintains its value through a system of over-collateralization and smart contracts on the Ethereum blockchain. Here’s how it works:
- Collateralized Debt Positions (CDPs) – Users lock crypto assets (e.g., ETH, WBTC, USDC) into MakerDAO smart contracts as collateral.
- DAI Issuance – After securing the collateral, users generate DAI up to a certain limit based on the collateral ratio.
- Stability Fees & Liquidation –If the collateral value drops too much, the system liquidates it to maintain the DAI peg.
- Peg Stability Mechanisms – The MakerDAO community can adjust interest rates and collateral requirements to keep DAI’s value stable.
Multi-Blockchain Support
DAI operates on multiple blockchain networks, including Polygon, BNB Chain, Avalanche, and Arbitrum, not just on Ethereum. This multi-chain support allows users to enjoy lower fees and faster transactions compared to Ethereum.
Why Use the Polygon Network for DAI Payments?
Polygon (formerly known as Matic Network) is a Layer 2 scaling solution for Ethereum that enhances the blockchain’s efficiency by providing faster transactions and lower fees. For businesses and merchants looking to accept DAI payments, Polygon offers several advantages over other networks, making it an ideal choice.
As businesses increasingly adopt stablecoins like DAI for payments, Polygon provides a blockchain infrastructure that ensures fast, secure, and cost-effective transactions.
DAI Payments on the Polygon Network: A Growing Trend
DAI is widely used on Polygon for transactions, especially in e-commerce, DeFi platforms, and business payments. The number of DAI transactions on Polygon has significantly increased, with millions of transactions occurring every month. As of recent blockchain data:
- Hundreds of millions of DAI are transferred monthly on Polygon.
- Thousands of merchants accept DAI payments on Polygon for products and services.
- DeFi platforms, gaming applications, and NFT marketplaces prefer DAI on Polygon due to stable value and low fees.
By choosing Polygon for DAI payments, businesses can leverage these benefits and become part of a growing crypto payment ecosystem.
Benefits of Accepting DAI Payments on Polygon
1. Lower Transaction Fees
Polygon is known for its ultra-low gas fees, making it ideal for frequent DAI payments. While Ethereum transactions can cost several dollars, transactions on Polygon only cost a few cents. This makes microtransactions, recurring payments, and large transfers cost-effective for businesses and customers.
2. Fast Payment Processing
Polygon’s high-speed transaction processing ensures that DAI payments are confirmed within seconds, unlike Ethereum, where transactions may take minutes or even hours during network congestion. This is crucial for businesses needing instant confirmation of crypto payments.
3. Scalability for High-Volume Transactions
Polygon is designed to handle thousands of transactions per second (TPS), making it one of the most scalable blockchain solutions for payments. Whether your business processes a few payments per day or thousands, Polygon ensures smooth operations without delays or congestion.
4. Security and Reliability
As a Layer 2 solution for Ethereum, Polygon inherits Ethereum’s security and decentralization while offering faster and cheaper transactions. Businesses can trust that their DAI payments on Polygon are secure, transparent, and immutable.
5. A Thriving Ecosystem for DAI Payments
Polygon is home to thousands of blockchain applications, including DeFi platforms, NFT marketplaces, gaming projects, and financial services that actively use DAI. Many businesses already accept DAI on Polygon, and this adoption is steadily growing, creating more opportunities for merchants who want to integrate DAI payments into their platforms.
6. Sustainability and Energy Efficiency
Polygon’s Proof-of-Stake (PoS) model is significantly more energy-efficient than traditional Proof-of-Work (PoW) blockchains. Businesses concerned about sustainability can reduce their environmental impact by processing DAI transactions on Polygon rather than using energy-intensive networks.
Why Businesses Should Accept DAI Payments on Polygon
Accepting DAI payments on Polygon offers a stable, efficient, and cost-effective solution for businesses. By combining DAI’s price stability with Polygon’s low-cost, high-speed blockchain, merchants can streamline crypto transactions while avoiding volatility risks.
- DAI is pegged to the US dollar, ensuring predictable revenue.
- DAI payments are final and irreversible, protecting businesses from fraud.
- Businesses can accept borderless payments without banking restrictions or currency conversion issues.
- DAI is widely used in DeFi platforms, allowing seamless integration into crypto financial services.
- DAI’s stable value makes it perfect for subscriptions, SaaS, and membership-based services.
Why Use Polygon for DAI Payments?
- Polygon offers near-zero gas fees, making DAI payments cost-efficient.
- Payments settle within seconds, ensuring smooth customer experiences.
- Polygon supports high transaction volumes, making it ideal for frequent payments.
- Built on Ethereum’s secure framework, Polygon ensures safe transactions.
- Polygon’s Proof-of-Stake model reduces energy consumption compared to traditional blockchains.
By leveraging DAI’s stability and Polygon’s efficiency, businesses can offer secure, scalable, and cost-effective crypto payments.
How to Accept DAI Payments on Polygon with OxaPay
Step 1: Sign Up on OxaPay
Create a free OxaPay merchant account with no KYC required for quick onboarding.
Step 2: Generate a Merchant API Key
- Go to the Merchant API section.
- Click Generate API Key and select DAI (Polygon) as an accepted currency.
Step 3: Integrate OxaPay into Your Business
After generating your Merchant API Key, you can use it to integrate OxaPay’s payment services into your business.
- Custom API Integration – Developers can connect OxaPay’s API to websites, apps, or platforms, utilizing services like Crypto invoice generation, white-label gateway, and static wallet addresses for seamless payment management.
- Payment Plugins – Easily integrate OxaPay’s plugins with platforms like WooCommerce, PrestaShop, WHMCS, and more to enable automated crypto payments without coding.
- Payment Links – Generate and share direct payment links with customers, allowing them to pay with DAI (Polygon) effortlessly.
Step 4: Start Accepting DAI Payments
Enable DAI (Polygon) at checkout, allowing customers to pay seamlessly.
Step 5: Withdraw or Convert Earnings
- Withdraw DAI to an external wallet.
- Swap DAI with no blockchain fee.
- Convert DAI to USDT or other supported coins.
Conclusion
Accepting DAI payments on Polygon with OxaPay is a secure, cost-effective, and fast way to receive stablecoin payments. Whether you’re running an online store, offering digital services, or accepting donations, OxaPay makes crypto payments simple and accessible.
Get started today and expand your business with stable, low-cost DAI transactions!
Sign up now and integrate OxaPay in minutes.
