On November 18, at 4 PM UTC, Maker DAO introduced a multi-collateral upgrade of DAI token by launching a new smart contract platform. Find out here what is this upgrade for.
Earlier, using the MakerDAO Collateralized Debt Position (CDP), a smart contract on the Ethereum network, all users were able to generate DAI tokens by locking up ETH as collateral in exchange. It then being held in escrow until the taken DAI is returned. Now, after the DAI’s upgrade, the users are able to set up any other digital asset as collateral on the MakerDAO platform.
Not to be confused, note that the multi-collateral token will be named DAI, and the single-collateral token will be just SAI, i.e., if you had the balance on the first token version, you will still have it on the SAI token. To activate multi-collateral DAI, you need to swap your SAI balance through the migration contract (see the instructions below). Atomic will support both SAI and DAI tokens until the SAI demand diminishes.
It’s believed that the higher number of crypto platforms is going to support the new MakerDAO’s system and the upgrade.
DAI Savings Rate (DSR)
The launch of the Multi-Collateral DAI has the Dai Savings Rate (DSR) feature. It allows DAI holders to earn savings. The users can lock and unlock the token in the DSR contract anytime. Locked in the contract, DAI will continuously be increasing its value. For instance, lock up 100 DAI in the DSR contract and get two extra DAI after one year. The reward will be added to your wallet automatically.
There are no charges required apart from the gas fee for locking and unlocking in the DSR mode.
How to upgrade
Just connect your wallet at the migration contract website that will be open from 4 PM UTC on November 18 and upgrade your DAI as well as other Maker’s tokens MKR, and CDPs into their new versions by confirming the process. Your balance will be automatically swapped into DAI.
If you don’t hold DAI, use Atomic’s instant exchange and swap any other crypto for DAI in the wallet.