DAI Development: Maker Announces Rebirth of OasisDEX, Weiss Ratings Bullish on Future
MakerDAO has announced the relaunch of OasisDEX to increase the depth of DAI trading and allowing users to trade, and create liquidity, for the assets included under Multi Collateral DAI (MCD), September 26, 2019. This mechanism will allow for decentralized trading of Maker (MKR) to channel more efficient price discovery.
Liquid Collateral Tokens
In order to create a robust loan structure, the underlying assets must have liquidity in order to protect those issuing the loans.
The rebirth of OasisDEX will allow for better price discovery of all collateral assets, while simultaneously creating an easy gateway for collateral tokens that have undergone liquidation.
MakerDAO has been a driving force on the Ethereum ecosystem, and their revamped version of Oasis is bound to be received well by the community.
Although DEx’s themselves have not managed to pick up traction, Uniswap’s success shows that if the mechanism is fundamentally strong, users – and by default, liquidity – will accrue to the platform.
That said, Maker’s Multi Collateral DAI announcement has not sat well with most of the community. Many believe that ETH’s underlying value and strength makes DAI issuance more resilient. Introducing new tokens that have hardly any real use case could spell trouble for loan issuance.
Ameen Soleimani, the founder of MolochDAO, has called on the community to help him create a separate Maker issuance with single collateral DAI, as it exists now. This is because Maker has rewritten its smart contracts for multi collateral purposes, and it changes the entire dynamic of the process.
DAI is More Than a Stablecoin
Although DAI is created on MakerDAO, which in turn runs on Ethereum, it is turning into an ecosystem of its own.
The basic process of collecting collateral for a loan and allowing CDP issuers to hold possession of it resembles the traditional ecosystem, where banks are CDP issuers and MakerDAO is a central bank.
Since DAI also maintains dollar parity through monetary policy and demand-supply mechanics, it is a more natural, yet decentralized, way of pegging.
That being said, there are inherent risks to DAI, mostly owing to a peg collapse. But the overly ambitious and broadly executing development teams on Ethereum have tackled this with SwanDAI: a hedge against the DAI peg collapsing.