Multi Collateral DAI and Savings Rate to Launch

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Dai new symbol, October 2019

The much anticipated Multi Collateral Dai (MCD) and the Dai Savings Rate (SDR) is to launch on November 18th according to an announcement at Devcon V by Rune Christensen, CEO of the Maker Foundation which manages the MakerDAO token that acts as sort of a bank of last resort.

“The launch of MCD will mark a huge milestone reached for the MakerDAO project—a turning point that will have a strong impact on the future of Decentralized Finance,” Maker said before adding:

“The DSR will not only allow users to earn on Dai held, but will also immediately create an entirely new dimension for innovative Maker protocol integration on the backend of DeFi dapps.”

Dai is currently only backed by ethereum, but once the MCD launches, BAT tokens could be used to collateralize DAI as well as other assets and tokens.

There’s a discussion on whether security tokens would require official identification like a passport or driving license to collateralized Dai.

“Regarding KYC of CDPs, this is only the case if the collateral is a regulated asset that requires KYC (and based on MKR holders assessing and pricing the risk), so, if it is the case, it is inherent to the collateral and required when moving it in and out of the CDP, but it is not a part of the Maker protocol, and of course doesn’t mean that other collateral types have to subject to KYC,” said Christensen.

The launch of the dai savings rate would mean you’d earn interest for holding dai. Such interest comes from the interest rate to create dai through collateralization.

This in effect would be similar to banks paying savers interest from what they charge borrowers, with it here done on a decentralized manner through ethereum smart contract.

How this relationship between the savings rate and the stability fee (borrowing rate) will develop may well be quite an interesting thing to watch as dai and Maker start maturing.

Copyrights Trustnodes.com

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