Is DAI dollar backed?

Excuse me, could you clarify something for me? I've been hearing a lot about DAI and its relationship to the dollar. Is DAI truly dollar-backed? I'm trying to understand how it works within the cryptocurrency ecosystem. Does it mean that every DAI token is somehow tied to a corresponding dollar amount? Or is it more of a conceptual backing rather than a literal one? Could you elaborate on the mechanics behind this supposed dollar backing, if it exists?" Such inquiries are common among those new to the world of decentralized finance and stablecoins. DAI, as a stablecoin, aims to maintain a pegged value relative to the US dollar, but the specifics of how it achieves this can be quite nuanced. Understanding these nuances is crucial for assessing the risks and potential benefits associated with investing in DAI or using it as a means of exchange.