MakerDAO multi-asset mortgage road was questioned by the community, the founder responded: the nature of the trust agreement will not change

The future of MakerDAO (MKR) will be a combination of crypto finance and traditional de-trusted assets. As can be seen from a recent discussion at Reddit, MakerDAO supporters do not agree with this development path.

Earlier this year, MakerDAO announced that they would gradually introduce multi-collateral contracts. This will enable users to use the assets selected by the community as collateral – not just Ethereum. Yesterday, the foundation announced that it had rewritten the core smart contract, so unless the existing DAI was migrated to a new contract generated on September 23, the DAI in the user's hands would be settled.

Makerdao

From a single collateral to multiple collateral

This is a controversial decision in the Ethereum community, and many people are reluctant to believe in collateral other than Ethereum. MakerDAO may also introduce the KYC process, which again violates the principle of decentralized financial low threshold. This has caused a lot of trouble for MakerDAO, including a very high participation fee, which is its loan interest rate.

MakerDAO uses Ethereum as the main collateral to produce stable currency DAI. But the system is extremely fragile, especially considering the volatility of Ethereum. The organization has been trying to introduce multiple collateral in the production of DAI, which may include more unstable competitors. But real-world assets may help reduce the risk of DAI anchoring the dollar.

Although MakerDAO uses a community voting mechanism, some believe that MakerDAO insists on making such changes regardless of whether the community agrees or not.

Decentralized finance has fallen? MakerDAO founder responded

Proponents of open finance believe that even a relatively small amount of exposure can undermine password-based investment purposes.

User "davoice" commented:

“When Maker promotes development and popularization, it seems to be moving towards the goal of traditional financial alliances. This may be good for institutional investors, market makers and others who need to improve DAI liquidity, but may Weaken the core value of DAIi."

People's interest in MKR is growing, as can be seen from the increase in DAI supply. The supply of this stable currency increased from 83 million to 86 million in a week. DAI has long been considered to have an advantage in that it can be generated through smart contracts based on the collateral provided. Therefore, the user can generate DAI anonymously. The process of trading DAI may require KYC, but the asset itself is anti-censorship.

Rune Christensen, founder of MakerDAO, also noticed the discussion on Reddit, saying:

“DAI can be backed by a basket of diversified encryption and non-related compliance assets that are properly risk managed and still remain trusted, as the agreement itself is de-trusted. Just like Bitcoin and Ethereum, you can While supporting Tether and centralized exchanges, there is still a de-trusting attribute."

Other stable assets that can be purchased in cash, such as Circle USD and Paxos Standard, have shown that the companies behind them have the ability to freeze user funds. In its current state of view, DAI can be almost resistant to censorship, and this stable currency can also be used in the Compound password lending program.

On the Ethereum network, MakerDAO is still the ninth smart contract with activeness, paying about $37,000 a month. It can also be used as a tool to participate in cryptocurrency lending and is becoming more popular. MakerDAO currently has more than $400 million in loans, and the agreement also locks $300 million in Ethereum. It is currently the most important platform for trusting lending, and the volume of locks continues to grow every week.