The representation is the primary source of value that determines the value of DAI. It reflects DAI's peg to the USD, allowing DAI to be used as a stablecoin.
DAI can be issued by any user, but directly redeemed only by DAI issuers, who own the debt position within the protocol. However, a one-to-one redeemability option exists and is activated in case of a global settlement (emergency shutdown), during which DAI can be redeemed directly for the equivalent of $1 of the underlying assets.