Support for Multi-Collateral Dai
Plans, expectations, and timeline
The Compound protocol currently supports DAI, a stablecoin created by the MakerDAO ecosystem. MakerDAO’s team has announced their intention to release a new version of the stablecoin, Multi-Collateral Dai (taking the name “DAI”) on November 18th, and intent to deprecate the legacy token (taking the name “SAI”) through global settlement months later.
Subject to further review, here’s what you can expect from the Compound protocol:
Existing (Current) DAI
- The existing Compound DAI market, “cSAI”, will continue to function normally; all protocol functions should continue to operate without issue, and no changes are expected to be made to the protocol.
- Users will not be forced to redeem SAI, nor maintain SAI inside the Compound protocol. You are individually responsible for choosing when, and how, to migrate to Multi-Collateral DAI.
- After MakerDAO calls for a global settlement, SAI will no longer be a stable asset, and will instead track the (partial) value of Ether — you should be aware that holding SAI inside Compound does not preserve its value, and does not prevent global settlement.
- Following the development, review, and auditing of a cToken contract, as well as a determination of suitability, Multi-Collateral DAI will be added to the Compound protocol as “cDAI”.
- Following the launch of Compound’s new DAI market, the Compound Interface will support both SAI and Multi-Collateral DAI, until SAI balances and usage become immaterial.
- Interest rates, in either the SAI or Multi-Collateral DAI market, may be unusually volatile or abnormal during the transition period.
- InstaDapp plans to support one-click migration from cSAI to cDAI.