Dharma’s Support for Multi Collateral Dai
Our plans for 18 November and beyond
TL;DR
One of the assets supported on Dharma is Dai, a digital dollar, or stablecoin, created by an organization called MakerDAO. The Dai system is being upgraded on 18 November to a new version, called Multi-Collateral Dai (MCD). Dharma users do not need to do anything at this time, and it is our intention to make the transition to MCD as simple as possible for our users.
At Dharma, we are very excited about the upcoming release of Multi-Collateral Dai (MCD), and are supportive of the MakerDAO team’s transition plan. MakerDAO have taken a thorough, thoughtful, community-oriented approach to the MCD migration, and we applaud their efforts to make this transition happen as smoothly as possible.
In this post, we lay out our plan for how and when we’ll add support for MCD, as well as some of our expectations for the migration.
In short:
- We do not plan to migrate immediately upon MCD’s public release
- We plan to migrate as soon as the initial dust settles, likely 1–2 months post MCD launch
- Please be aware that we will be changing the name of Dai to Sai
- There is no action required of Dharma users at this time, and we will keep our users posted as our plans evolve
Dharma will not support MCD immediately
While we are enthusiastic about MCD’s upcoming release, Dharma does not plan to immediately support MCD-Dai when it is released to the public on 18 November. This is due to several factors.
First, Dharma is built on Compound, so MCD support in Compound is a prerequisite for Dharma to be able to support MCD. It is our understanding that Compound is sprinting to support MCD as soon as possible, and we’re excited to be able to make the transition once they add support. You can read more about Compound’s plan here.
Second, we expect some market volatility in the immediate aftermath of MCD’s launch. In particular, we expect interest rates to be quite volatile, and we believe the prudent route at this time is to wait for markets to stabilize before adding support for MCD.
What users need to know
As a Dharma user, no action is required of you at this time, whether you are a depositor of USD Coin (USDC) or Dai.
If you have deposited Dai, please be aware that we will be following MakerDAO’s nomenclature suggestions and will be renaming the asset that you have deposited to Sai, meaning “Single Collateral Dai”.
If you want to learn more about Multi Collateral Dai you can check out these resources from the MakerDAO team:
Finally, we’ll keep Dharma users informed as our plans evolve, so expect more news from us over the course of the next few weeks.
Have any questions or comments? Join us in our Discord, we’re happy to chat.
