MakerDAO's MCD: What changes?

蓝狐笔记

特邀专栏作者

2019-11-12 14:47 (UTC+8)

This article is about 2555 words, reading the full article takes about 4 minutes

How will the upcoming MCD affect Dai and MKR holders?

AI Summary

How will the upcoming MCD affect Dai and MKR holders?

Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.

Editor's Note: This article comes from

Blue Fox Notes (ID: lanhubiji)

, reprinted by Odaily with authorization.

In the DeFi field, MakerDAO is a very influential project. It generates the stable currency Dai in a decentralized way. And Dai is by far the most widely used decentralized stablecoin in DeFi.

Dai has always been generated by ETH over-collateralization. And on November 18, 2019, MakerDAO will release Multi-Collateral Dai (Multi-Collateral Dai), which is the MCD mentioned in the title. This will be a major event in the history of MakerDAO development. What changes will it bring?

Terminology Changes on MakerDAO

As shown below:

Before the MakerDAO project, there was an important term CDP (Collateralized Debt Position), which is the collateralized debt position. Some community users believe that "staking" is confusing and reminiscent of unrelated traditional financial products. In the latest version, CDP will be replaced by "Vault", which can be called a small vault, a vault. This term sounds safe.

The existing Dai is generated by over-collateralization of ETH, but after the new version, this part of Dai will be called Sai (Single-Collateral Dai), while the Dai generated by multi-asset mortgage is still called Dai.

As shown below:

Note that in addition to the change in terminology, the icons for Dai and Sai are also different.

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Upgrade Sai to Dai

On the day when the MCD version is released, users can upgrade their Sai to Dai. At a certain point after the upgrade (the specific time point will be determined by the community through governance), Maker will adopt emergency shutdown measures. The current MakerDao protocol may be closed, and the existing Sai and CDP will be settled. The upgrade will also bring users the benefits of the latest version, such as more mortgage asset options, and DSR (Dai Savings Rate), that is, after upgrading Sai to Dai, you can earn income through DSR deposits.

Augur (REP)
Basic Attention Token (BAT)
DigixDAO (DGD)
Ether (ETH)
Golem (GNT)
OmiseGo (OMG)
0x (ZRX)

Before Sai ends, it means that there will be two stable coins (Sai and Dai), two stability fees, that is, two systems are in operation.

Since it is multi-asset mortgaged Dai, what new mortgage assets will be added?

The Maker community is evaluating the first new crypto assets:

To become a mortgage asset of MCD, it needs to pass the process of community governance. Proposal first, then debate and feedback, where the community collects formal feedback on proposals. Afterwards, multiple community surveys will be conducted to investigate the sentiment of voters for each proposal. Finally, a formal vote takes place. Voting will decide whether to activate the collateral asset and its parameters. In other words, as long as it can be approved by the community's governance, more mortgage assets can be added in the future.

In a single-asset collateralized Dai system, the stability fee is paid in MKR, while in a multi-asset collateralized system, Vault holders will pay the stability fee in Dai.

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What are DSRs?

DSR (Dai Savings Rate) is a new function of MCD, Dai holders can use it to earn income. Any user who holds Dai can participate, it can participate and exit at any time, it is a flexible deposit.

In addition, it is also a smart contract of the Maker protocol, which is composable. That is, other decentralized applications (dApps) can use it.

DSR also affects the behavior of Dai holders through its fee rate. When the price of Dai is too low, DSR will increase the fee rate to encourage users to buy and deposit more Dai, so that the demand for Dai will rise and the price will also rise. When the price of Dai is too high, DSR will reduce the rate, reduce the demand for depositing Dai, withdraw Dai, increase the supply of Dai, and reduce the price of Dai.

If you deposit Dai through DSR, the annual income is 5%, who will pay for the Dai? Paid from the stability fee required to generate Dai. That is, paid by Dai lenders.

Therefore, the stability fee actually bears two parts of the cost: one is the risk premium of specific mortgage assets, which is the value transfer from CDP holders to MKR holders; Transfer of value to Dai holders. The exact amount of the DSR rate will be decided by MKR holders through voting.

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