MakerDAO multi-mortgage Dai has been online, new collateral is still under consideration

The Decentralized Autonomous Organization (DAO) Maker has launched a new Dai stable currency today. This multi-collateral Dai (MCD) is supported by multiple types of collateral, unlike the single-backed Dai (SCD, also known as Sai) used earlier.

Maker

Although Maker announced the new agreement as early as October, the company updated the information in an article on November 18th to explain the change in Dai.

The article pointed out that the release of MCD does not require any action by Dai users. Maker said that it will pay close attention to developments and announce the latest situation to users when needed.

Maker plans to phase out the old DAI in the coming months

Maker plans to phase out Sai. Although Maker did not give an exact date for a full transition to MCD, it is only planned to be launched within a few months after launch, but the startup said it will help users convert SAI to MCD in advance.

It is particularly noteworthy that after November 18th, Dai users can convert their SCDs into MCDs via the Argent wallet. Argent announced today on Twitter that the SAI-DAI conversion feature will be released in the coming weeks.

MCD users with Dai can earn Compound revenue

In addition, the new Dai will be available for use on the Compound protocol, and users with Da can earn revenue from it. As for the specific operation process, Maker said that users must move their old Dai out of Compound and transfer the converted MCD to Compound. According to Maker, although Compound confirmed plans to integrate Dai in mid-October, there is no specific date yet.

The plan to launch the MCD system was first disclosed by Rune Christensen, CEO of the Maker Foundation, in mid-October. The launch of MCD is expected to open two important features – the new collateral type of Dai Savings Rate (DSR) and Debt-backed Bond Position (CDP) – another important aspect of the Dai smart contract ecosystem.

Unlike a typical currency-backed stable currency, Dai does not have a bank account with the corresponding reserve currency, but generates Dai by transferring Ether (ETH) to the CDP smart contract.

After the upgrade, the collateral will be open to other ERC20 tokens. There are currently 7 tokens under consideration, and which tokens can be added in the future will also be voted by MKR holders. The seven currencies are Augur (REP), Basic Attention Token (BAT), DigixDAO (DGD), Ether (ETH), Golem (GNT), OmiseGo (OMG), and 0x (ZRX).

There are no plans to add traditional assets yet.

The original single collateral, Dai, began operations about two years ago to create a cryptocurrency to support a stable, decentralized digital global economy.

In September this year, there were concerns that such a token could be incorporated into traditional assets and introduced KYC functions once it turned to multi-collateral. Many people believe that this is contrary to the purpose of centralized finance.

It now appears that the community’s objections to these plans seem to have received attention, at least for now.