MakerDAO Releases Guidelines for Migrating Existing DAI to Multi-Collateral Contracts
Earlier this year, MakerDAO announced that they would be phasing in multi-collateral contracts. This would give users the ability to enter a Collateralized Debt Position (CDP) by using asset chosen by the community as collateral, instead of just ETH. The Foundation has rewritten the entire smart contract core, so this will result in existing DAI being settled unless it is migrated to the new contract, September 23, 2019.
Single Collateral to Multi-Collateral
This was a highly debated decision within the Ethereum community. Some were extremely reluctant to allow any asset other than ETH to be used as collateral for a CDP, while a few others were skeptical about which tokens could be posted as collateral with minimal additional risk.
MakerDAO will migrate all existing CDPs to the new smart contract deployer, as the existing contracts were redone in order to allow or multiple assets to be posted as collateral. In essence, anyone holding DAI on an exchange or from a CDP is required to migrate their tokens to the new contract once it’s deployed.
A website will be launched that details how exactly this migration is to be done for every type of user. The website was designed with an intuitive UI to allow everyone to seamlessly go forward with the token migration.
Roadmap and Outlook
Maker has a detailed roadmap on their website, outlining the various steps in the governance process for selecting, testing, and deploying assets on the protocol. The update involves a complete revamp of the platform and fresh branding efforts.
Essentially, the current version of the protocol will cease to exist within a few months of the new version’s deployment.
The next step in the process is the third party audit of the multi collateral DAI proposal, followed by a whitepaper explaining the entire setup in detail.
Ethereum’s DeFi stack has only come into the limelight in 2019, but Maker has been leading the charge for finance on Ethereum since its inception in 2015. With over $400 million worth of loans originated and $300 million of ETH locked in the protocol, Maker is the most dominant trustless lending platform in existence, and continues to grow with each week.