Today, at 16:00 UTC, Multi-Collateral Dai (MCD) launched!
Currency By the People, For the People
In 2017, MakerDAO brought the revolutionary new idea of Dai—a decentralized cryptocurrency with very little volatility—to the table. Suddenly, people around the world, including the un- and under-banked, were offered an accessible, stable store of value without the intermediation of a centralized entity. Today, Maker releases Multi-Collateral Dai, a more robust platform to power a stronger yet more flexible currency.
Not long ago, MCD was envisioned as a system that would help shape the future of commerce on the blockchain. Today, that vision is a reality. MCD stands ready to make good on its promise to allow businesses and individuals all over the world to realize the advantages of digital money—without common restrictions and inherent volatility.
“I’ve been imagining this moment for five years,” says Rune Christensen, Maker Foundation CEO. “It’s incredible. MCD can improve the lives of so many people, from the unbanked individuals living in regions like Nigeria to the underbanked in the United States.”
The launch of MCD also means that careful scaling remains crucial as Maker Governance becomes increasingly more sophisticated. “The biggest hurdle will be governance. MKR holders must become comfortable governing the basic MCD system.”
The upgrade is a result of countless hours of hard work, commitment, and stewardship from the Maker community. “MCD literally could not have happened without the support and input of so many community members,” Christensen acknowledged. “Thank you, all.”
The Maker Foundation, partnering with the community, has fulfilled its long-held promise to shepherd the Maker Protocol and Dai into its next phase. The Maker Foundation is excited to see the community, Dai holders, and the Maker Governance community continue to build on the Maker Protocol and enhance and expand the potential of Dai.
All You Need to Know About MCD at a Glance
On November 8, we shared What to Expect With the Launch of Multi-Collateral Dai. On Tuesday’s Maker Community Call, David Utrobin, Maker’s Community Development Lead, spent some time reviewing the features of MCD with participants. Today, we provide a brief round-up of all that’s available to you today.
The coast is clear to migrate your Sai to Dai. Plenty of your favorite exchanges and partners have prepared for today and are now ready. Reference the Migration Guide for assistance, and remember that the opportunity to migrate is not open-ended. The Maker community may, at some point, determine that it is no longer possible or desirable to effectively manage the Sai ecosystem, and could trigger an Emergency Shutdown of SCD. To learn what happens to Sai and CDPs that are not upgraded, review the documentation on Emergency Shutdown.
Stability Fee Payment Change
In the Single-Collateral Dai system, Stability Fees are paid in MKR, the Maker Protocol’s governance token. In the MCD system, Vault owners pay Stability Fees in Dai. This means Single-Collateral Dai users must have MKR in their wallets to complete the migration to MCD.
The collateral types offered in MCD currently are ETH and BAT, Brave’s digital advertising token. The Maker community is currently evaluating an additional token—prediction market Augur’s REP. The extensibility of the Maker Protocol means that, with MKR voter approval, almost any tokenized asset that has appropriate risk parameters could be made available as collateral in the future.
The Dai Savings Rate (DSR)
DSR’s true power lies in its simplicity: with a few simple steps, users earn an attractive return on their Dai holdings natively, from within the Maker Protocol, and without fees. The DSR is a powerful new tool for individuals, entrepreneurs, traders, partners, and, of course, developers.
Dai holders can now deposit and withdraw Dai into the DSR contract via Oasis Save.
Oasis DeFi Hub
- Oasis Trade. Beginning today, Oasis Trade no longer trades Sai. Importantly, however, the DAI/USDC pair and additional ETH markets have recently been added. Users can cancel their standing Sai orders and migrate their Sai tokens to Dai to resume trading on Dai markets.
- Oasis Borrow. Oasis Borrow is the portal through which users can lock their collateral assets (ETH and BAT, currently) in Vaults to generate Dai. Users can create multiple Vaults from the Borrow dashboard, and manage them seamlessly in one place.
- Oasis Save. The product referenced above that enables the Dai Savings Rate.
Anticipating Multi-Collateral Dai on Exchanges
A number of exchanges are preparing to offer MCD; however, they are on their own timelines. Rollouts are expected in 1-3 weeks, but users should contact their exchanges to confirm.
Governance Polls and Executive Votes
The Maker Protocol is managed through a system of Executive Polling and Voting by those around the world holding its governance token, MKR. Now through the end of the year, the Maker Governance community should expect regular governance calls, polls, and votes.
The Oracle Security Module (OSM)
On November 8, OSM was announced. OSM delays a price for one hour and allow Emergency Oracles or a Maker Governance vote to freeze an Oracle if it is compromised. MKR holders make decisions regarding Emergency Oracles and the price delay duration.
As noted in Say Goodbye to CDPs and Hello to Maker Vaults on October 31, “Vaults” replaces Collateralized Debt Positions (CDPs), Single-Collateral Dai is now Sai, and MCD-generated Dai is Dai.
New Branding, Web Design, and UX
If you entered the blog through the Maker homepage, you probably noticed the new look. The changes made in branding, web design, and platform interfaces will help move DeFi into the mainstream and assist Dai in being globally recognized as a currency.
New and More Content
The Foundation and members of the larger MakerDAO Community have created more robust FAQs for partners, Vault owners, Dai holders, and newcomers, and will continue stocking the Developer’s’ Repository with guides and tutorials to help builders understand how to interface with MakerDAO and with partners through smart contracts, SDKs, APIs, and products.
In the days ahead, a new white paper will be released with a technical description of the full design of the MCD system.
All Systems Go!
If you have any questions about upgrading or any of the features of MCD, reach out on the Maker Forum.