Maker Foundation: Multi-Collateral Dai Almost Ready for Maker CDPs

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The MakerDAO ecosystem is on the verge of making one of its biggest evolutions to date.

That ecosystem, driven by the MKR-DAI token tandem, has proven popular in DeFi circles over the last year courtesy of its premier dapp, the Maker CDP Portal for collateralized debt positions.

Yet before now, users have only been able to collateralize ether in CDP smart contracts to trustlessly draw out loans in the Dai stablecoin (Note: MKR is the governance token, used to vote on the Dai’s interest rate and more).

Maker Dai

More cryptocurrency collateralization options are now all but imminent, though.

Ready to Pull the Trigger on Multi-Collateral Dai (MCD)

Years in the making, the so-called “Multi-Collateral Dai” feature — the ability to collateralize Maker CDPs with digital assets beyond ether — is on the verge of opening up the playing field for DeFi users.

Moreover, the Maker Foundation announced on June 27th that it was on the verge of opening up the MCD for the project’s community to move forward and vote on, its team explained in a roadmap update:

“After years of partnering and planning, coding and community building, scientific governing and ecosystem onboarding, the Maker Foundation can confidently share that it is prepared to initiate the late-stage tasks required to launch Multi-Collateral Dai (MCD) on Mainnet.”

How Will the Launch Occur?

From here, the actual activation process will be a winding one.

First, the MCD smart contracts, which have already been tested at length on Ethereum’s Kovan testnet, will need to be formally audited and then have its foundational documentations released.

After these initial steps, the pre-launch phase will entail the following:

  • publishing a Collateral Onboarding Guide
  • holding a Governance Poll to determine tokens to proceed with
  • publishing a Risk Framework document
  • holding a Governance Poll to approve or deny that framework
  • running a final Executive Vote for MKR holders to ratify MCD

With that said, the Maker ecosystem and its stakeholders are also going to have to undertake the process of updating all of the project’s web materials and creating a new dapp portal for MCD CDPs.

So What Assets Can Be Collateralized Via MCD?

The simple answer is that any token could be usable through MCD to collateralize a Maker CDP.

The catch is that any prospective token will have to go through the various vetting and vote processes in the Maker community before they can be activated in the MCD feature for good.

To get the ball rolling on the first lot of new MCD candidates, the Maker Foundation has prepped six tokens as preliminary prospects for inclusion, with the final say being in the hands of MKR voters. The projects under consideration include 0x (ZRX), Augur (REP), Basic Attention Token (BAT), DigixDAO (DGD), Golem (GNT), and OmiseGo (OMG).

As the Maker team explained in a follow-up post to the June 27th roadmap update:

“By initially focusing on this first set of tokens, the Maker Foundation can streamline and potentially accelerate governance efforts. The Foundation will continue to communicate with MKR holders on the broader risk and governance process while preparing the collateral priority poll.”

Dai Just Got Another On-Ramp Boon

If you live in the United States, Maker’s Dai stablecoin may soon be coming to an ATM near you.

Well, technically a bitcoin teller machine (BTM) — that’s because BTM company Coinsource, which operates more than 200 such machines throughout the U.S. — announced this week that it was rolling out Dai buys and sells throughout its network of devices.

The move will precede Coinsource opening up Dai remittance services on its machines. The embrace should make Dai that much more accessible and comes after the stablecoin was added on last month.

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William M. Peaster is a professional writer and editor who specializes in the Ethereum, Dai, and Bitcoin beats in the cryptoeconomy. He's appeared in Blockonomi, Binance Academy, Bitsonline, and more. He enjoys tracking smart contracts, DAOs, dApps, and the Lightning Network. He's learning Solidity, too! Contact him on Telegram at @wmpeaster

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