Is DAI backed by anything?

I've been hearing a lot about DAI recently, but I'm still not entirely clear on its backing. Could you please elaborate on whether DAI is backed by anything? I've seen some discussions about it being collateralized, but I'm not sure how that works or what it means for the stability of DAI. Is it backed by real-world assets or something else? I'm interested in understanding its underlying mechanisms and how it differs from other cryptocurrencies. Could you provide some clarity on this matter?