One of the most frequently asked questions about Multi-Collateral Dai (MCD) is: Which tokens will be added as collateral for the system? The answer lies solely in the hands of MKR voters.
The flexibility of the Maker Protocol means that almost any kind of asset that can be tokenized can be made available as collateral in the system, as long as it has appropriate risk parameters. To ensure that the system is capable of supporting a wide range of asset types, the Maker Foundation built within it a series of “connectors” to allow for real-world collateral testing and auditing of MCD.
The first collateral types to be tested were chosen by the Maker Foundation based on diversity, an average daily volume of several million USD, and the relative stability of each token.
Voting On the First Collateral Types Beyond ETH
During the week of July 29, the Maker Foundation will ask the community to participate in a poll to prioritize the order in which these assets could be entered into the governance system as proposals for review and possible ratification by MKR token holders.
The collateral types that MKR voters can select to evaluate first are:
By initially focusing on this first set of tokens, the Maker Foundation can streamline and potentially accelerate governance efforts. The Foundation will continue to communicate with MKR holders on the broader risk and governance process while preparing the collateral priority poll.
Once the prioritized list is in place, MKR holders can begin evaluating and debating the merits of each collateral type and, ultimately, vote on which tokens to include in MCD.
On July 9, the Maker Foundation will publish its proposed Collateral Onboarding Guide and the Application Form that community members will need to complete to submit proposals for adding collateral types to MCD. In accordance with MakerDAO governance principles, each collateral type must be reviewed and voted on by MKR holders prior to adoption.
It is hoped the number of independent risk teams participating in the governance process will grow to handle inclusion of a wide range of community-proposed ERC20 tokens soon after MCD launches.
Finally, a list of critical milestones that must be achieved in order to launch MCD has been published. Please take a moment to review that information.
The entire Maker Community, which includes MKR voters, has been integral throughout the course of this project, and is needed now more than ever. The Maker Foundation is looking forward to working with the Maker community to launch Multi-Collateral Dai!
To learn more about governance and voting, read our three-part series on Maker’s governance and risk framework.