Multi-Collateral DAI Migration on dYdX
TLDR: Users on dYdX don’t need to do anything. Your positions, balances, borrows etc. will be converted automatically into the new Multi-Collateral DAI in early December, at which point Single-Collateral DAI will be unavailable.
Summary
MakerDAO has announced their plans to release a new version of DAI — Multi-Collateral DAI on November 18.
Below is a summary of how dYdX is planning to handle the migration. Our goal is to make this as simple for our users as possible, and to minimize the extent to which there is fragmented liquidity and different versions of DAI on the platform. We believe this will also help push forward DAI adoption given that there is ~13.5M SAI supplied and ~10M SAI borrowed on dYdX today.
In this post, we will be referring to Multi-Collateral DAI as DAI and the current Single-Collateral DAI as SAI.
What does migration mean on dYdX?
There are two key points to be aware of in the migration process:
1) Multi-Collateral DAI Launches on November 18
MakerDAO will launch DAI on November 18. On dYdX, nothing will change on this day. We will continue to support SAI as per usual. Users will be able to trade, borrow, lend SAI as they can today. DAI lending, borrowing, and trading will not be supported on dYdX at this time.
2) Automatic Conversion on dYdX occurs
2–3 weeks after DAI launches (First or Second week of December), any remaining balances in SAI (positive or negative) will be converted automatically on this day. During this period, SAI & DAI spot markets will be down until the conversion is completed. We expect this process to take ~2 hrs.
We understand that this is not the most specific timeframe, however there are many moving pieces here. We will communicate more specific timelines closer in (1 week before and on the day) via Telegram, Twitter, and a notice on the exchange itself.
How will the automatic migration take place?
We will create a globally-approved smart contract that will convert SAI to DAI for each open account in dYdX. Open positions are treated the same as accounts: any open positions with a SAI pair will become an open position with a DAI pair. Extra SAI will be converted into DAI using Maker’s special migration contract that allows trades of SAI to DAI 1-to-1. The conversion from SAI to DAI will be trustless (utilizing open-source smart contracts) that are verifiable by the community. During this time, trading on any SAI or DAI spot market will be disabled.
If you are lending on dYdX: Your balances will automatically update from SAI to DAI.
If you are borrowing on dYdX: Your SAI debt will automatically update to DAI debt.
If you have an open isolated margin position: Your position will remain open, with SAI replaced for DAI.
If you have open limit orders: All open limit-orders involving SAI will be canceled prior to the migration. New orders will have to be placed for DAI.
At any point before the automatic conversion, users may also close positions, pay back borrows, withdraw funds, and perform their conversion individually via Maker’s Portal.
Next Steps
Please reach out to our team on Telegram or Twitter if you have any questions. Otherwise, we will outline more specific timing as we approach the conversion day.
