MakerDAO is excited to share recent developments resulting from our ongoing collaboration with OmiseGO. Our teams have been working diligently to bring about what we feel are the core components needed to enable a true financial revolution. Together, we believe deeply in a near future that leverages the power of decentralization for trustless transactions. We are partnering with OmiseGO in our shared mission of enabling the next generation of financial tools on the blockchain.
At Maker, we deliver products that contribute to the growth of the ecosystem as a whole. In particular, we are carrying out this vision by first addressing price stability through the launch of our decentralized stablecoin Dai and most recently, by bringing ease-of-use to the community through the recent launch of the first decentralized instant trading application, Oasis.Direct.
OmiseGO shares our passion for building a robust ecosystem and is in the process of developing a wallet SDK and DEX that will be vital to the utility of the overall network. The live OMG network will be a performant and secure proof-of-stake network which will enable high transaction throughput at a low cost.
Today, we are excited to share two announcements on developments between Maker and OMG.
Dai Stablecoin available soon on OMG network
The OmiseGO team is building a platform that provides a scaling solution for finance on Ethereum, enabling transparent, peer-to-peer transactions in real-time. This decentralized network facilitates self-sovereign financial services across geographies, asset classes, and applications. A stable currency will play a critical role in this emerging financial ecosystem.
In light of this pressing need, we are proud to announce that Dai will be available on the OMG network. Users will be able to trade against our stablecoin Dai as a currency pair. On the OMG network, Dai serves as a completely decentralized option for stability and price predictability. Without Dai, network participants must either subject themselves to the volatility of the crypto markets or face the expensive and inefficient process of converting their crypto to fiat. This is especially beneficial to users who interact with the OMG network to access, manage, and transact with digital assets that are kept securely on chain.
Dai stability is maintained through a dynamic system of Collateralized Debt Positions (CDPs), autonomous feedback mechanisms, and appropriately incentivized external actors. It is a decentralized infrastructure without a central operator, meaning that no one can alter the core mechanics of Dai, making it an ideal currency to be used as a stable store of value.
OMG as Collateral for Issuing Dai
Additionally, we would like to share that OMG will soon be available as a collateral option for issuing Dai.
Each Dai is backed by some valuable asset held in the secure Maker smart contract platform. Anyone can lock their tokens up as collateral and issue Dai against them. We first launched single collateral Dai in December of 2017. To create Dai today, you send Ether to a Collateralized Debt Position (CDP) on the Maker platform.
Soon, in our next release, we will be opening this up for multi-collateral Dai, meaning there will be a variety of collateral options that can be used in the creation of a CDP. OMG will be among the first of these multi-collateral options available for CDP creators.
We plan to include any number of quality collateral tokens in the first round of options, but always on condition that risk signs it off and sends it to MKR governance for approval — which includes, among others, OMG.
Learn more about MakerDAO:
We believe in a future that leverages the power of decentralization for trustless transactions.
With Maker, we are carrying out our vision of creating a decentralized stablecoin that will unlock the unique benefits of a complete financial ecosystem on the blockchain. Join us!