Maker Launches New Dai Today, Expects to Phase-Out Old Dai in Months

Published at: Nov. 18, 2019

Decentralized autonomous organization (DAO) Maker will launch a new type of Dai (DAI) stablecoin today. Known as Multi-Collateral Dai (MCD), the new type of the DAI will be backed by several types of collateral in contrast to the existing Single-Collateral Dai (SCD), which will now be called Sai (SAI). 

While Maker previously announced the new protocol in October, the firm provided an update on the upcoming changes to Dai in a post on Nov. 18.

As per the announcement, the launch of MCD will not require any action from Dai users today. Maker said it will be monitoring developments closely and will update users when action is required.

Maker plans to gradually phase-out old DAI in several months

Maker plans to gradually phase-out Sai. While Maker does not have an exact date for the full shift to MCD and expects it to come in several months from the launch, the startup says it will help users convert their SAI to MCD in advance, according to the post.

Specifically, Dai users will be able to convert their SCD to MCD via the Argent wallet soon after Nov. 18, Maker noted. According to an Argent tweet today, the SAI-DAI conversion feature will be released in the coming weeks.

MCD users will be able to earn interest from holding Dai tokens via Compound protocol

Additionally, the new Dai will be available on the Compound protocol, which will allow users to earn interest from holding Dai tokens. In order to start earning interest from Dai, users will have to remove their old Dai from Compound and move the converted MCD back into Compound, Maker explained. While Compound confirmed their plans for Dai integration in mid-October, there is no specific date set for the change, according to Maker.

MCD system’s launch plans were first revealed by the Maker Foundation’s CEO Rune Christensen in mid-October. The launch of MCD is expected to unlock two key features — the Dai Savings Rate as well as new collateral types for collateralized debt positions (CDPs), which is another important aspect of the Dai’s smart contract ecosystem.

As reported, Dai is different from typical currency-backed stablecoins as it is not supported with bank accounts of reserve currencies but is generated by putting Ether (ETH) into a CDP smart contract. In early November, the Dai stablecoin hit its 100 million token debt ceiling ahead of the collateral protocol upgrade.

Tags
Blockchain
Dao
Stablecoin
Smart Contracts
Interest Rates
Related Posts
Blockchain Study: Gemini Custodian is Able to Alter or Reverse Gemini Dollar Transactions
The implementation of the recently launched Gemini dollar (GUSD) stablecoin can be completely changed by a Gemini custodian every 48 hours, according to a study authored by blockchain researcher Alex Lebed and crypto consultant Alexey Akhunov, published on Medium on September 11. In the research, the authors review the code of the GUSD’s smart contract in order to demonstrate that the implementation of the Gemini USD can become non-transferrable or frozen at any moment, which is noted in the Gemini dollar’s white paper. The option of pausing, blocking, or reversing GUSD transfers is one of the basic technical principles of …
Blockchain / Sept. 16, 2018
Anchor protocol's reserves head toward depletion due to lack of borrowing demand
Anchor, the flagship savings protocol of the Terra Luna (LUNA) ecosystem, has seen its reserves decline by 35.7% in the past seven days according to Terra.Engineer. Since the beginning of December, the amount of Terra USD Stablecoin (UST) held in the "terra1tmnqgvg567ypvsvk6rwsga3srp7e3lg6u0elp8" smart contract has declined by over 50%, with only $35.7 million remaining. As a savings protocol, users deposit their UST assets via their wallets and earn up to 20% yields as their principal is lent out to borrowers, who pay interest on the loan amount. Borrowers must deposit collateral to ensure the lender can get their money back …
Adoption / Jan. 27, 2022
Interoperability has a new meaning thanks to this Polkadot-powered startup
Blockchain development is an ever-expanding space. In what feels like a daily occurrence, new projects and networks appear that claim to offer faster performance or new functions, unlike anything we’ve seen before. Whether or not those claims are true, the existence of multiple blockchain networks requires developers to consider the benefits and disadvantages of each one before building a decentralized application (DApp). And, more times than not, developers are locked to their network of choice from inception onward. A vital decision Building a DApp is no easy task. A development team must learn one or more programming languages, work around …
Blockchain / March 4, 2022
Vitalik Buterin reveals 3 ‘huge’ opportunities for crypto in 2023
Ethereum co-founder Vitalik Buterin has shared three “huge" opportunities yet to be realized in crypto, including mass crypto wallet adoption, inflation-resistant stablecoins, and Ethereum-powered website logins. During an interview with Bankless co-owner David Hoffman, Buterin shared his outlook for the crypto industry in 2023, responding to Hoffman’s raised concern that the “adoption wave” for decentralized applications is now over and that there’s “less opportunity” for developers to come in and build new decentralized applications. Buterin instead shrugged off the “limbo period” that Hoffman eluded to, firstly suggesting that more developments need to be made on cryptocurrency wallet infrastructure in order …
Adoption / Dec. 20, 2022
Sell or stake: Ethereum staking giant Lido mulls choices for its $30M ETH
The decentralized autonomous organization (DAO) behind Lido — the largest Ethereum staking pool — is deliberating whether it should sell or stake the $30 million in Ether (ETH) from its treasury. A proposal was submitted on Feb. 14 by the DAO’s financial unit, Steakhouse Financial that considers four choices, one of which contemplates staking part or all of its ETH on Lido in the form of Lido Staked ETH (stETH). Another would see LidoDAO selling a part or all of its 20,304 ETH for a stablecoin, with the purpose being to extend the DAO’s runway. The proposal comes as ETH …
Blockchain / Feb. 15, 2023