MakerDAO launched a new type of Dai (DAI), Maker’s stablecoin, today.
The stablecoin is backed by different types of collateral, ether and basic attention tokens initially with the possibility of further collaterals being added in the future, and it is called Multi-Collateral Dai. The previously known stablecoin DAI, backed by ETH, will now be referred to as Single Collateral Dai (SAI), as the company gradually phases out the coin during the next several months.
Currently the SAI stablecoin is supported by the Compound protocol. The new Multi-Collateral DAI will also be supported by Compound and SAI holders are expected to migrate their coins eventually. Maker has plans to phase out the current SAI in the upcoming several months and the coin will no longer be a stable asset but it will track the partial value of Ether.
Upcoming developments include integrating the Multi-Collateral DAI into the Compound protocol, pending the development, review, and auditing of a cToken contract. Per an announcement made by Argent, SAI tokens will be able to be converted into the new DAI tokens in advance through the Argent Wallet. The conversion requires users to remove old DAI (now SAI) from the Compound protocol, convert them to the new DAI and then place them back into Compound once it launches its support for the new DAI.
Nevertheless, DAI users are not required to do the aforementioned process to convert at the moment, and the Compound Interface will support both tokens until SAI balances and usage are irrelevant. Additionally, Maker announced they are developing an app update that will allow users to convert SAI to DAI in one tap.
Per the release of the MCD, new features like the Dai Savings Rate (DSR) will be introduced. The DSR feature “will allow DAI holders to earn savings natively, further differentiating DAI from other stablecoins,” and it will be available to withdraw at any moment, presenting “almost no liquidity impediments.”
Collateralized debt positions (CDPs) will now be referred to as Vaults. People with existing CDPs have the option to either repay their loans and close their CDPs at any time during the transition period, or wait for the new Vault migration feature Maker will launch and migrate their CDPs to the new Vault in one tap, without the need to repay loans. The aforementioned feature is expected to launch soon.
Maker first announced they’d be launching the new Multi-Collateral Dai months ago, and Maker Foundation CEO Rune Christensen revealed the Nov. 18 date at the beginning of October.