MakerDAO is upgrading its Maker (MKR) protocol, wherein Multi-Collateral DAI (MCD) will be implemented. While Maker announced the new protocol in October, the update with the upcoming changes to Dai will be live on Nov 18.
Multi-Collateral Option Coming to DAI
MakerDao’s MCD has been proposed to add new assets eligible as collateral for DAI – the system’s dollar-pegged stablecoin. If until now, only Ether (ETH) was being used to issue DAI, with the MCD upgrade Maker (MKR) holders will be able to deposit other cryptoassets as collateral. The governance community is yet to decide which assets will be added, with options between Augur (REP), Basic Attention Token (BAT), DigixDAO (DGD), Golem (GNT), OmiseGO (OMG) and 0x (ZRX).
As per the announcement, the launch of MCD will not require any action from Dai users. Maker stated it will be monitoring the deployment of the MCD closely and will update users if any action is required.
While the new type of DAI will be backed by several types of collateral, the existing Single-Collateral Dai that has been until now backed by ETH, will now be called SAI.
Maker Plans to Phase Out SAI
Maker views the upgraded DAI as the better version that will allow the currency to grow significantly. As a result, the team plans to gradually phase-out SAI. The plan is to Migrate SAI into DAI using Maker’s native migration portal.
DAI is at the heart of the decentralized finance (DeFi) ecosystem and the transition may not be without hiccups, but is certainly viewed by most of the community as a step forward. The new Dai will be available on DeFi protocols like Compound.
MCD system’s launch plans were first revealed by the Maker Foundation’s CEO Rune Christensen in mid-October. The MCD upgrade brings several new features beside the multi-collateral options, along the Dai Savings Rate as well as the re-branded collateral debt positions (CDP) as Vaults.
In early November, the Dai stablecoin hit its 100 million token debt ceiling ahead of the collateral protocol upgrade.
A number of crypto exchanges have already confirmed the switch to MCD including Wyre, Bitcoin Suisse, Bittrex, Kyber, Bamboo Relay, Bitfinex, DeversiFi, Coindirect, GO.exchange and dYdX.
Recently Coinbase, Crypto.com and Kraken also announced their support to trade the token.