Today (November 18th 2019), MakerDAO is launching its new version of DAI - Multi-Collateral DAI (MCD).
After hitting their $100 million market-cap, MakerDAO needed a solution to continue their growth and minimise risk so as a result, MCD has launched and the old DAI will change its name to SAI (Single Collateral DAI). Eventually, SAI will depreciate and MCD will be the future stable coin from MakerDAO.
MCD will have more liquidity and better stability and therefore it can scale for more users. As SAI will soon become obsolete but we are unsure of the date (due to many factors), we can no longer assume that 1 SAI is for 1USD.
MCD will be known as DAI and the old DAI will be known as SAI.
So how does this affect Raise?
The Raise marketplace currently uses DAI as the stable coin to settle loans between lenders and borrowers.
We are pleased to announce that we will be supporting the new DAI and we will be releasing an update to support the new stable coin very shortly after today's upgrade. As a result, there will be minor maintenance during this week to accommodate these changes.
This migration has happened at a great time for us because the only potential issue for lending platforms is that SAI can no longer be assumed to the USD which can be a worry for long-term loans and currently Raise only has borrowers looking for short-term financing.
As a user, if you hold any SAI and want to use our platform, we advise you to follow the DAI migration guide, in order to swap your SAI to the new DAI after today’s date.
What happens to existing loans?
We will prevent the creation of new loans with SAI, as the MakerDAO system can not guarantee to be stable in medium/long term after the global settlement.
Users will not be forced to redeem SAI, nor maintain SAI inside Raise loans. You are individually responsible for choosing when and how to migrate your SAI to Multi-Collateral DAI.
We understand that this is complicated. Not a lot of things will change as far as the user will see but we needed to communicate that we are prepared for today’s launch.
Sign up to Raise today!
We encourage you to reach out to us via firstname.lastname@example.org if you have any questions that need to be answered.