Multi-Collateral Dai (MCD) will bring a lot of new and exciting features to the Maker Protocol, including additional CDP collateral types and the long-awaited Dai Savings Rate. To support the new functionalities, the entire core of Maker smart contracts has been rewritten. Therefore, to take advantage of these improvements, users and partners working with existing single-collateral Dai (or Sai) in the CDPs, or any other aspect of the Single Collateral Dai (SCD) system must upgrade to MCD upon its release.
IMPORTANT: If you hold any Dai today, either in a wallet, CDP, or on an exchange, you must upgrade when MCD is released (unless the exchange offers to handle this for you), otherwise you will be subject to Emergency Shutdown, which is explained below.
To ensure a smooth transition for all from SCD to MCD, the Maker Foundation has created the MCD Upgrade Guide. The guide provides an overview of the upgrade process for the different actors in the Maker ecosystem, and details the following:
- What is migration, and how does it work?
- How can I upgrade my existing Dai and CDPs to MCD?
- What is the best upgrade practice for different types of partners?
- How do I as an integration partner support the new functionality of MCD?
Why Is the Upgrade Necessary?
After a grace period, expected to last at least some months pending an MKR Governance vote, the current version of Maker Protocol (SCD) will be shut down and any existing Dai and SCD CDPs remaining will be settled. Therefore, users must upgrade their Sai holdings and CDPs to MCD before the period ends to avoid settlement. To learn what happens to Sai and CDPs not upgraded, review the documentation on Emergency Shutdown.
The Upgrade Process Depends on How You Use the Protocol
The process of upgrading from Single-Collateral Dai to Multi-Collateral Dai differs, depending on use case and partner type. So, the guide is split into sections.
User and Partner Upgrade Scenarios
- As a Sai Holder
- As a SCD CDP Owner
- As a Centralized Exchange or Custodial Wallet
- As a Decentralized Exchange
- As a Non-Custodial Wallet
- As a Keeper
- As a Market Maker
- As a CDP Integrator
- As a Lending Protocol
- As a Dapp
Upgrading Sai and CDPs
At the launch of MCD, Sai and CDP holders will be able to upgrade holdings to MCD through the Migration app, which will be hosted at migrate.makerdao.com. An intuitive UI will guide users through the process of upgrading Sai and moving active SCD CDPs to the new smart contract system.
To upgrade Sai, users will simply specify and then submit the amount to upgrade. Once that transaction is complete, the received upgraded Dai will then be sent to the same ETH account that initiated the upgrade—and the token includes new features, such as support for the Dai Savings Rate.
The Migration app will also guide users through the upgrade of active CDPs. A user will simply select the CDP to upgrade, and then submit a transaction through the platform. The migration contract will then ensure that the CDP is upgraded to MCD. Please refer to the guide for a detailed description of this process.
Upgrade Process for Integration Partners
The Dai stablecoin is used in many applications (dapps) across the Ethereum ecosystem, and enjoys a steady increase in adoption, especially in the area of decentralized finance. While every implementation of Dai is different, we have attempted to summarize the processes for how various actors using existing Dai or CDPs can upgrade successfully and support the added functionality of MCD. However, if you need assistance determining the best upgrade path for your specific implementation, contact the Maker Foundation’s Integration Team.
The Migration app and Migration contract will launch on mainnet with the launch of MCD. In the meantime, please consider subscribing to updates to the MCD Upgrade Guide on Github.
To learn more about MakerDAO, join the conversation on the Maker Forum.