DAI Flippens SAI 3 Weeks After Multi Collateral DAI Launch
The total amount of SAI (single collateral DAI) that was converted to DAI has exceeded 50 percent of outstanding supply. At this rate, we could see nearly all SAI migrating to DAI by the end of 2019. Maker has been exceptionally healthy, faring well even as ETH and BAT prices continue to fall, December 9, 2019.
The Future of Maker, DAI, and SAI
A successful launch of multi collateral DAI has resulted in a renewed sense of achievement within the Ethereum – specifically the DeFi – community. The new contracts are designed to allow for more assets to be used as collateral to mint DAI. According to Mariano Conti, a developer at Maker, DAI was always meant to be positioned as a tokenized stablecoin backed by a multitude of assets – not just ETH.
Maker has played a crucial role in helping migrate SAI to DAI. Anyone using MetaMask that had SAI would know of the constant reminders that show up to engage in the migration process. Some have criticized Maker for this, calling it an obtrusion on users.
SAI is likely to be phased out before the second half of 2020. Maker has hinted at calling the emergency shutdown on SAI, and this also aided the shifting narrative that everyone to actively migrate to DAI. As it stands, SAI is still being actively used, but this is unlikely to continue into the foreseeable future.
Ringing in a New Era
The doors are now open for a wide variety of ERC-20 tokens to listed as approved collateral for a Maker loan. The end goal of this to be able to avail a loan in DAI against, say, the tokenized version of your house. In short, as advancement in tokenization yield reliable results, you can expect to use real world assets as collateral in DeFi.
One of the more profound drawbacks of open finance is the need for overcollateralization. Given the permissionless and non-custodial nature of these protocols, overcollateralization has been a necessary hindrance.
With rapid advancement in coordination and innovative game theory, one would hope that in the future people will be able to access short term funding requirements with less collateral.