We always want to make sure your crypto experience is as simple as possible. This is therefore a quick update on the changes to Dai, a stablecoin established by Maker.
Dai was originally backed by one type of collateral, ETH, but on 18 November 2019 a new type of Dai launched. It is backed by many types of collateral and therefore known as Multi-Collateral Dai. This is a highly anticipated evolution that aims to make DAI more stable while bringing in new assets to DeFi, strengthening the whole space.
What does the change mean for you?
In short, we’re monitoring developments closely and you don’t need to do anything today. We’ll update you when action is required. In the meantime, you may want to read the below and see what path will be most relevant for you.
You hold Dai? We’ll help you convert from the old Dai to the new DAI
The old DAI will be gradually phased out (and become known as Single-Collateral Dai, SAI). The Maker community hasn’t decided the exact date but it’s expected to be several months away. Regardless, we’ll help you easily convert your SAI to the new DAI in advance. You’ll be able to do this in one tap in your Argent wallet.
There’s no need to do anything yet though. We'll let our users know we have an app update that will let you make the one-tap SAI-DAI conversion.
You’ve got DAI earning interest in Compound?
Compound have confirmed they’ll support the new DAI but they haven’t provided a date yet. The change will require removing your old DAI from Compound, converting it to the new DAI and then moving it back into Compound. As always our focus will be on making this as simple as possible for you.
For now your options are to:
- Withdraw your existing DAI from Compound. Then, after we launch our one-tap SAI-DAI conversion and after Compound launches its support for the new DAI, put it back in Compound.
- Keep your existing DAI in Compound until they launch their support for the new DAI. When they do you can withdraw your existing DAI, convert it to the new DAI and then put it back in Compound.
You’ve got a Maker CDP in Argent?
The move to the new DAI will see CDPs become known as Vaults. Your options are to:
- Repay your loan and close your CDP at any time during the transition period.
- Wait for us to launch our new Vault migration feature, then migrate your CDP to the new Vault in one tap, without having to repay your loan. We expect this new feature to be live in the New Year, once the dust settles.
We're monitoring developments closely and will update our users as the transition progresses.