Decentralized autonomous organization (DAO) Maker will launch a new type of Dai (DAI) stablecoin today. Known as Multi-Collateral Dai (MCD), the new type of the DAI volition be backed by several types of collateral in contrast to the existing Single-Collateral Dai (SCD), which will now be called Sai (SAI).

While Maker previously announced the new protocol in Oct, the firm provided an update on the upcoming changes to Dai in a mail on Nov. eighteen.

Equally per the declaration, the launch of MCD will not require any action from Dai users today. Maker said it will be monitoring developments closely and will update users when action is required.

Maker plans to gradually stage-out old DAI in several months

Maker plans to gradually phase-out Sai. While Maker does not have an exact engagement for the total shift to MCD and expects information technology to come in several months from the launch, the startup says information technology will help users convert their SAI to MCD in advance, according to the post.

Specifically, Dai users volition exist able to catechumen their SCD to MCD via the Argent wallet soon after Nov. 18, Maker noted. According to an Argent tweet today, the SAI-DAI conversion characteristic volition be released in the coming weeks.

MCD users volition be able to earn interest from holding Dai tokens via Chemical compound protocol

Additionally, the new Dai will exist bachelor on the Compound protocol, which volition allow users to earn interest from belongings Dai tokens. In club to start earning involvement from Dai, users will accept to remove their old Dai from Compound and move the converted MCD back into Compound, Maker explained. While Chemical compound confirmed their plans for Dai integration in mid-October, there is no specific date prepare for the alter, according to Maker.

MCD system's launch plans were first revealed by the Maker Foundation's CEO Rune Christensen in mid-October. The launch of MCD is expected to unlock two key features — the Dai Savings Rate every bit well as new collateral types for collateralized debt positions (CDPs), which is another of import attribute of the Dai'south smart contract ecosystem.

As reported, Dai is different from typical currency-backed stablecoins every bit it is not supported with bank accounts of reserve currencies but is generated by putting Ether (ETH) into a CDP smart contract. In early November, the Dai stablecoin striking its 100 million token debt ceiling ahead of the collateral protocol upgrade.