Compound + Multi-Collateral Dai

Robert Leshner
Nov 28, 2019 · 2 min read
Image for post
Image for post

Multi-Collateral Dai has been added to the Compound protocol through the creation of a new cToken contract, cDAI — you can now supply and borrow the latest version of DAI.

Several minor improvements have been made to the cToken contract for this launch, and one significant improvement — upgradability. Over time, the mechanics of cDAI can evolve through the governance layer of Compound.

At launch, cDAI functions exactly like other cTokens — in the coming weeks, cDAI will be upgraded to implement the Dai Savings Rate and interest rates set through the MKR voting process. Following that upgrade, cDAI will be enabled as collateral to borrow other assets.

As a brand new market, interest rates, liquidity, and behavior may be highly unusual at first— please exercise considerable caution when interacting with cDAI.

Resources

Update, December 17th

The planned upgrade to cDAI has been queued in the governance layer of Compound, and will go live in two days:

  • The interest rate model for cDAI will be replaced with 0xec163986cC9a6593D6AdDcBFf5509430D348030F, which sets the borrowing cost lower bound to be the Dai Savings Rate * 1.05, and the borrowing cost at 90% utilization to be the Dai Stability Fee + 0.05% — going forward, MakerDAO will effectively control the interest rates of cDAI through the MKR voting process.
  • The implementation for cDAI will be replaced with 0xbB8bE4772fAA655C255309afc3c5207aA7b896Fd, which will sweep all DAI held by the cDAI contract into the Dai Savings Rate.
  • The collateral factor for cDAI will be increased from 0% to 75%.

As a safety mechanism, two transactions to revert cDAI back to it’s original, standard cToken format have been queued in the Timelock; these are intended to expire unused in 14 days, and will only be executed in the event of a near-term emergency or flaw in MakerDAO.

Compound

Compound is an algorithmic, autonomous interest rate protocol built for developers.

Robert Leshner

Written by

Full-stack founder of Compound. Chartered Financial Analyst, previously a finance guy.

Compound

Compound

Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.

Robert Leshner

Written by

Full-stack founder of Compound. Chartered Financial Analyst, previously a finance guy.

Compound

Compound

Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.

Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface. Learn more

Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Explore

If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. It’s easy and free to post your thinking on any topic. Write on Medium

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store