On November 16, 2019, MakerDAO passed the executive vote to launch Multi-Collateral Dai. The official release was scheduled for 12:00 AM Beijing Time on Monday, November 18.
AToken Wallet announced full support for MakerDAO's Multi-Collateral Dai system at the same time. Users can access the feature through the MakerDAO section within the wallet’s "Discover" page.
Concurrently, the MakerDAO development team released the mainnet contracts for Multi-Collateral Dai. The publication of these contracts signified that the system was technically ready for launch, with the Dai debt ceiling initially set to zero.
At the designated launch time, the debt ceiling was activated and set at 153 million Dai. This allocation included 100 million Dai reserved for the upgrade from Single-Collateral Sai (Sai), 50 million for ETH-backed Dai, and 3 million for BAT-backed Dai. This activation marked the formal start of the Multi-Collateral Dai system, enabling users to generate Dai using collateral and to upgrade their Single-Collateral Sai to the new Dai.
Key Features of Multi-Collateral Dai
The introduction of Multi-Collateral Dai brought several major enhancements to the ecosystem. The most anticipated among them was the Dai Savings Rate (DSR). This feature allows users to earn savings by holding Dai, providing a new passive income mechanism within the decentralized finance (DeFi) landscape.
Furthermore, the system expanded beyond a single type of collateral. While the initial Single-Collateral Dai (Sai) only accepted ETH, the multi-collateral version introduced support for additional assets. This diversification allows users to leverage different cryptocurrencies to generate Dai, reducing risk and increasing flexibility.
The upgrade also included improvements to the system's stability and security mechanisms. These were designed to make the Dai stablecoin more resilient to market volatility and enhance the overall user experience for both borrowers and holders.
How to Use Multi-Collateral Dai with a Wallet
Engaging with the Multi-Collateral Dai system through a compatible decentralized wallet is a straightforward process. Users need to navigate to the dedicated DeFi section, often labeled "Discover" or "DApps," within their wallet interface.
From there, they can locate and connect to the MakerDAO application. The interface will guide them through the steps of either depositing collateral to generate new Dai or upgrading their existing Sai to the new Multi-Collateral Dai. It is crucial to understand the terms, such as the collateralization ratio and stability fee, before proceeding.
Completing these actions requires confirming transactions, which will incur network gas fees. Always ensure you have a sufficient amount of the native network token (like ETH) to cover these transaction costs.
The Role of Decentralized Wallets in DeFi
Decentralized wallets serve as the essential gateway for users to interact with DeFi applications like MakerDAO. Unlike centralized exchanges, these wallets give users full control over their private keys and, consequently, their funds.
They provide a secure and user-friendly interface to access a wide array of financial services—including lending, borrowing, and earning interest—without intermediaries. The security architecture of a non-custodial wallet means that the user is solely responsible for safeguarding their seed phrase and private keys.
The integration of major DeFi protocols into wallet interfaces has significantly lowered the barrier to entry. It allows a broader audience to participate in the emerging open finance ecosystem directly from their mobile device or computer. 👉 Explore more strategies for using DeFi platforms
Frequently Asked Questions
What is the difference between Sai and Dai?
Sai, often called Single-Collateral Dai, was the original version of the stablecoin backed only by Ethereum (ETH). Dai is the Multi-Collateral version that supports additional assets like BAT and offers new features such as the Dai Savings Rate (DSR).
How do I upgrade my Sai to Multi-Collateral Dai?
The upgrade process can be completed through the MakerDAO portal accessible via supported decentralized wallets. The interface will guide you through the steps to migrate your Sai to the new Dai system seamlessly.
What is the Dai Savings Rate (DSR)?
The Dai Savings Rate is a feature that allows holders of Dai to earn savings by locking their Dai into a dedicated smart contract within the MakerDAO system. It provides a passive income stream based on the prevailing rate set by Maker governance.
Is there a risk involved in generating Dai?
Yes, generating Dai by locking collateral carries risk. If the value of your collateral falls below the required collateralization ratio, it may be liquidated to cover the debt. It is important to monitor your position and maintain a safe level of collateral.
Which other assets are planned to be added as collateral?
The MakerDAO community governance continually votes on and approves new collateral types. A wide range of digital assets has been proposed and is under consideration for future inclusion in the system.
Why did my transaction fail?
Transaction failures can occur for several reasons, including insufficient network gas fees, slippage tolerance set too low, or network congestion. Trying again with a higher gas fee often resolves the issue.