Maker Launches New DAI

On 18th November, Maker posted an update on the upcoming changes to DAI. The announcement of the new protocol was proposed in October. 

The stable coin by Maker, DAI, was being backed by single collateral. However, with the upcoming changes, the new DAI will be backed by various collaterals. These changes are aimed at making DAI more stable and strengthening the whole space.

According to this announcement, DAI users are not required to take any actions, but Maker will closely monitor the developments and alert the users when a response is expected of them.

Maker Transition From old DAI to new DAI

Maker will gradually phase out the old DAI, the single collateral DAI which will now be referred to as SAI. The exact date for the shift to be completed has not yet been disclosed, but it is expected to be months away. 

Maker assures DAI users that they will help them convert the old DAI to the new DAI. Soon after the launch of the New DAI on 18th November, the conversion of the old DAI to the new DAI will begin. There will be an app update in the coming weeks that will help the users with the SAI-DAI conversion.

The MCD launch which was first revealed in October by Rune Christensen, Maker’s CEO, is set to unlock two features, the DAI Savings Rates and the CDPs (Collateralized Debt Positions)

Compound Protocol to allow MCD Users to Earn Interest

The compound has confirmed their support for the new DAI, but so far, they haven’t provided a date for the change. DAI users will be able to earn interest from DAI, but they will have to convert their old DAI into the new DAI. 

The users will be required to remove their old DAI from the compound, convert it into the new DAI, and then return it to the compound. The users can choose to either remove their DAI from compound now or wait until compound launch their support for the new DAI and remove it then, convert it to new DAI and return it to the compound.

For users with CDP (Collateralized Dept Positions) in Argent, they could choose to either pay their debt during the transition period or wait for the launch of the new Vault migration feature, then move the CDP to the new Vault in one tap. The second step will not require the user to pay the loan as the CDP will be the new vaults.

Other cryptocurrency baked stable coins are supported by bank accounts of reserve currencies, DAI. However, DAI is different from these other stable coins as it is not supported by bank accounts of reserve currencies. Instead, it is generated by putting ETH into a CDP smart contract.