MakerDAO Liquidity Issues Shut Down Single-Collateral DAI

The MakerDAO Liquidity issues led to the protocol officially shutting down the Single-collateral DAI and now it will also fully transition to the Multi-Collateral DAI system as we are reading further in the altcoin news.

The shutdown was expected and was even approved by the community during the governance poll back in April. Today marks the end of an era for MakerDAO and the Single-collateral DAI system since it got officially shut down. The protocol is now migrating to the multi-collateral DAI system which will provide more stability and far more efficient ecosystem for the MakerDAO community.

Shutting down because of the MakerDAO liquidity issues was discussed for a longer time in the community, ever since the MCD was officially introduced in 2019. Liquidity problems that the SAI ran into back in March, were the official catalyst for the shutdown. At the end of March, the entire Foundation launched a governance poll to allow the community to device whether or not to shut down the system.

The Single Collateral Dai (SAI) shutdown process is underway.
If you still hold Sai or have an old CDP (ie you haven't migrated to a Vault) here are your options before and after May 12 at 16:00 UTC:

— Maker (@MakerDAO) April 28, 2020

There were 18 unique voters that approved the proposal to deactivate the MKR Oracle in the SAI network who represented less than 47,000 MKR or $15 million. The protocol entered a ‘’grace period’’ which lasted less than a month which allowed the users to migrate all of their Collateralized Debt positions to the MCD. The SAI holdings are required to exchange their tokens for Ethereum by themselves through the migration portal.

As per the latest altcoin news, According to Adam Cochran and his Twitter thread, it seems that MakerDAO’s DAI could pose a huge threat to the Ethereum DeFi space. According to the DeFiPulse site, the project seems to dominate the open finance ecosystem with almost 55% dominance in terms of value locked-in contracts. MakerDAO’s DAI did well and its governance token MKR managed to gain the support of some of the biggest venture capital companies, Andreessen Horowitz, which purchase a huge chunk of the tokens back in 2018.

Previously, The MakerDAO governance has officially approved the USD Coin (USDC) stablecoin as the third collateral type that is accepted in the Maker Protocol. MakerDAO authorizes the USDC stablecoin after an extraordinary executive vote outside of the usual weekly schedule occurred, following last week’s market instability.