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Danae was the daughter of Eurydice and Acrisius, king of Argos. Acrisius tried to kill Danae and her son to save himself. The story began when Acrisius learned of a terrible prophecy about his daughter. The oracle of Delphi prophesied that Danae would have a son who sometime in the future would kill his grandfather. In an effort to avert this, Acrisius imprisoned his daughter in an underground chamber that took air and light from a small hole at the top. So no man could find it.

One day, while Danae was mourning for her imprisonment, she watched a few drops of rain penetrating into her room. The drops were made of gold and they showered her when she finally realized that Zeus was transformed into golden drops to get closer and become her lover. Danae succumbed to the flirt of Zeus and spent many hours with him. Soon a boy, who was Zeus' son, Perseus, was born.

Acrisius, trembling with fear, when he found it out, refused to believe that his grandson was Zeus's son. He was determined to prevent the oracle from coming true, and thus locked Danae and the little Perseus into a wooden chest that he threw into the sea. He hoped that he would make a break with them, but the chest was protected by Zeus. It was driven away in the sea when it finally “sailed” to Serifos. The brother of the local king, Polydectes, was fishing in the sea that day when he found the chest in his nets. When he opened it he saw with great surprise a beautiful girl with her baby. Danae and Perseus were still alive and found a new home.

In the next few years Polydectes fell in love with Danae but because Perseus had grown up, he was reluctant to ask her to marry him. So he thought of a trick to get rid of Perseus. He stated that he would be married to another woman, thus requiring the kingdom's warriors to bestow their wedding gifts. Perseus was already a tough and brave young man and promised Polydectes to hand him the head of the Gorgon Medusa, which could turn anyone who stared at it into stone. Surely, Polydectes thought that Medusa would kill Perseus and thus he could approach Danae undisturbed.

Perseas visited Graies, three blind and toothless witches who told him where to find the gorgon. Perseus stole their helmet of invisibility, winged sandals, and other magic aids before he began his quest. He found the gorgon sleeping and being careful not look at her but her idol on his bronze shield, he took her head. When he returned to Serifos, holding the head of Medusa with snakes instead of hair, he found Polydectes harassing his mother, Danae, who had sought asylum in the sanctuaries of the gods. Furious, Perseus faced the King by showing him the head of Medusa. Polydectes glanced at her head and turned instantly into stone.

Perseus and Danae were finally free to leave Serifos and return to Argos. King Acrisius still had the oracle of Delphi in his mind, but he felt joy welcoming his successor. Eventually he loved Perseus and believed that he would never hurt him. However, one day in the city of Larissa there were games in honor of the late local king, and a young athlete threw the discus . Acrisius happened to be in the track of the disk, that hit him on the head and killed him instantly. The young man was Perseus and the Delphic oracle had been verified. Perseus decided not to take his grandfather's throne, but became king of Tiryns and Mycenae, two major cities of the Bronze Age. His children include heroes like Hercules, so Danae became the ancestor of one of the greatest legendary Greek heroes.