Home CryptocurrencyAltcoins What is Multi Collatoral Dai?

What is Multi Collatoral Dai?

by Alan Daniel
, What is Multi Collatoral Dai?

MCD is the stock ticker symbol for the fast-food corporation, McDonald’s, but it is also applicable to DAI, or preferably Multi Collateral Dai.

Dai will switch from using one collateral (ETH) to open up debt positions and release DAI to using multiple assets as collateral to secure debt positions.

MCD or Multi Collateral DAI is one concept that has been in the works for some time now and will be live and active quite soon.

Let’s talk about the most confusing aspects of DAI and move on from there.

MCD Terminology

SAI: Singe Asset Dai is what we used to have, where Ethereum was the only collateral used to generate Dai.

Multi-Collateral Dai: All references to DAI in the present and the future will be for multi collateral DAI. If someone talks to you about DAI in the future, remember they are talking about the new DAI, multi collateral Dai.

Vault: All new collateral debt positions will now be Vaults. Again, if someone comes to you and talks to you about Vaults when discussing DAI, then they should be talking about their loan position with MCD.

DAI (MCD) users may open up new Vaults (CDP’s) by having ethereum or basic attention as collateral.

New Aspects of DAI or Multi Collateral Dai

The Dai Savings Rate (DSR): The DSR is a new feature present within the Maker Protocol that will allow Dai holders to increase their DAI holdings by placing their DAI into a DSR contract. The Dai Savings rate is critical because it will be native to the DAI platform. Users can avail of its services by navigating to DAI itself instead of other protocols or applications that charge additional fees to conduct the same activity.

The Dai Savings Rate feature will be a boon to DAI savers, builders, and other members of the cryptocurrency ecosystem.

It will serve as a crucial component in increasing stability within the Dai system, as well.

Users should know that they can place as little one dai to start earning.

Further, they can withdraw dai at any given time.


, What is Multi Collatoral Dai?

Dai


One additional note is that exchanges will integrate DSR and Dai held on different exchanges will earn interest.

Decentralized application creators can integrate DSR into their different applications for users to take advantage of within various applications.

“The most amazing aspects of the DSR are that it has no counterparty credit risks and it can be implemented on the backend of any DeFi product that uses Dai,” says Rune Christensen. “The inherent efficiency of the Maker Protocol and, by extension, the DeFi ecosystem, are what allow the DSR to provide great savings opportunities for people everywhere.”

finally, remember that single collateral dai or SAI will slowly become a thing of the past and MCD will be the new dai.






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