Today, at the 5th Ethereum Developers Conference (Devcon5), Maker Foundation CEO Rune Christensen announced that the multi-mortgage Dai (MCD) will be officially launched on November 18. Multi-mortgage Dai will bring many new features to the Maker agreement, including the long-awaited Dai Deposit Rate (DSR) and more collateral types.
In fact, multi-mortgage Dai can be said to be "deliberate for a long time." As early as April this year, Pan Chao, head of Maker DAO China, revealed that the multi-mortgage Dai was “closer”. At the Ethereum Technology and Application Conference held at the end of June, Pan Chao made it clear that Dai will shift from single mortgage to multi-collateralization. Most of the alternative collateral is ERC20 tokens, and will increase interest-free deposit interest. The first batch of candidate assets were Augur (REP), Brave (BAT), DigixDAO (DGD), Ethereum (ETH), Golem (GNT), OmiseGo (OMG), and 0x (ZRX).
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However, Maker DAO's multi-collateral road is not easy. In September of this year, some members of the Maker community questioned Reddit and expressed their distrust of mortgage assets outside ETH. Moreover, due to the volatility of ETH itself, the risk of a single mortgage system is relatively fragile, and the introduction of multiple collaterals may bring more risks. At the same time, Maker DAO may introduce KYC and make them feel that they violate the principle of decentralized financial low threshold. This month, Maker DAO announced that an important vulnerability discovered in the MCD upgrade was fixed, and that the vulnerability could put 10% of the system's collateral at risk, which once cast a shadow over MCD's upgrade.
Despite this, Maker DAO is still firmly pushing MCD. A long-awaited start, MCD finally meets with users in November, and Babbitt is also connected with Pan Chao, who is attending the scene at DevCon5 today. Pan Chao said that after a series of evaluations and voting, “BAT is the top priority among the first batch of candidate assets” and will become the first new mortgage asset in multi-collateralization. In the next few weeks, MKR holders will evaluate CDP and Dai upgrade risk reports, ETH risk reports, and BAT risk reports.
According to Maker DAO's Guide to Mortgage Selection, it is expected that the formal selection of each collateral will take about one month, so it will take a long time for the first batch of assets to be fully operational to achieve true multi-asset.
In addition to the most obvious feature of the multi-collateral type, the Dai Savings Rate (DSR) is one of the most anticipated features of the multi-mortgage Dai. “In addition to continuing to provide decentralized stable coins, Multi-Cured Dai supports any holder to lock Dai into the Dai Deposit Rate (DSR) Smart Contract to earn interest on the demand deposit.” That is, DSR can be understood as Dai’s demand deposit. interest rate.
Pan Chao told Babbitt:
“Single mortgage Da can only rely on stable rates to maintain Dai's stability, and the emergence of DSR provides a new tool to adjust monetary policy. Maker can adjust the interest rate to affect the behavior of Dai holders, thus from demand The side affects the price of Dai."
Simply put, if the price of Dai is lower than the target price, Maker governance is expected to increase the Dai deposit rate, motivate users to buy Dai, and increase Dai price; if Dai price is higher than the target price, Maker governance is expected to lower Dai deposit interest rate to slow down Dai's oversupply has caused Dai prices to fall back to the dollar anchor level.
“The official release of Multi-Mort Dai is a huge milestone for MakerDAO and DeFi.” The Dai deposit rate not only allows users with Dai to earn interest, but the support of multiple mortgage assets also makes it easier to use various DeFi applications. More economic incentives to integrate the Maker protocol.