What is Sai?
MakerDAO is a decentralized organization committed to bringing stability to the cryptocurrency economy through the Maker Protocol, which utilizes a two-token system. The first token is Dai, a collateral-backed stablecoin that offers stability, making it the ideal decentralized stablecoin for businesses and individuals looking to take advantage of digital money. Second, there is MKR, a governance token used by stakeholders to maintain the system and manage Dai. MKR token holders are the decision-makers of the Maker Protocol, supported by the larger public community and various other external parties. By creating an inclusive platform for economic empowerment, Maker is unlocking the power of decentralized finance for everyone, providing equal access to the global financial marketplace.
With the recent release of the new version of the Maker Protocol, Multi Collateral Dai (MCD), we wanted to discuss some of the changes and features it comes with. One of the most significant changes to the Maker Protocol is that it now accepts any Ethereum-based asset as collateral to generate Dai given that it has been approved by MKR holders and has been given specific, corresponding Risk Parameters through the Maker decentralized governance process.
The DAI Module in the Maker Protocol was designed to represent any token that the core system considers equal in value to its internal debt unit. As such, the DAI Module contains the DAI token contract and all of the adapters DaiJoin adapters. The Dai contract is the user-facing ERC20 token contract that maintains the accounting for external Dai balances, with most functions being standard for a token with changing supply. Notably, the Dai contract features the ability to issue approvals for transfers based on signed messages.
MakerDAO's mission is to offer financial stability and equal opportunities to individuals and businesses globally. Dai, the stablecoin backed by the Maker Protocol, provides a stable alternative to volatile cryptocurrencies, allowing for secure, decentralized transactions. Through the use of MKR governance tokens, MakerDAO ensures transparency and decentralization in its decision-making processes. The Maker Protocol's new version, MCD, further enhances the system's flexibility, accepting any Ethereum-based asset as collateral. Overall, MakerDAO's innovative technology and commitment to financial stability make it a valuable player in the decentralized finance space.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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