What is the usage of DAI?

Could you please elaborate on the utilization of DAI in the cryptocurrency ecosystem? As a financier, I'm particularly interested in understanding its role in decentralized finance and how it differs from traditional fiat currencies. Is DAI widely accepted as a means of payment? What are the benefits of using DAI for transactions? Moreover, how does the stability mechanism of DAI work to maintain its pegged value? Thank you for your insights into this intriguing topic.