MakerDAO Project Launches Multi-Collateral DAI Stablecoin

MakerDAO project officially launched its upgraded multi-collateral DAI stablecoin today and announced it will not include traditional assets as accepted forms of collateral yet. The cryptocurrency exchange Coinbase on the other hand, announced support for the upgraded token from 2^nd December as we reported in the previous altcoin news here on DC Forecasts.

The Multi-collateral DAI (MCD) will add a lot of new features to the Maker protocol according to the recent blog post and in addition to the expanded range of increased collateral asset types, it will also introduce the Dai savings rate. This will allow the holders of the MakerDAO project to earn the save in the native coin and the initial rate will be decided by the holders.

The collateral which has been limited previously to the ETH tokens only, will not be open to other ERC 20 tokens and there are right now a few other tokens under constructions and the initial tokens will be added and voted on by the MKR holders. Coinbase announced its intention to support the Multi-collateral DAI in a blog post of its own. Any token that is held on the exchange will be upgraded from Single-Collateral DAI or now known as SAI, to multi-collateral DAI on December 2^nd.

Sai that is held elsewhere can be moved to a new Coinbase account before the date for automatic conversion. Coinbase also plans to further automate the conversion at some point in the future for all those who miss the deadline. However, Sai can also be manually converted to DAI by using the Migration app from MakerDAO or via the Coinbase Wallet app. Anyone who has the SAI on the Coinbase platform, but does not want to migrate to the multi-collateral version, should move the tokens elsewhere before December 2^nd.

The original single-collateral DAI went live before two years with the goal of creating a cryptocurrency that will be able to support the decentralized and stable digital global economy. There were some concerns back in September that the token’s multi-collateral future would incorporate the traditional assets as collateral and to also introduce KYC features which many believe is defeating the purpose of the decentralized finance.