The original MakerDAO protocol (MKR) logged out on May 12 at 4 p.m. UTC after an immediate shutdown procedure was initiated due to the events of Black Thursday.
With the Single-Collateral DAI or Sai, Ethereum (ETH) only could be used as collateral for the credit platform. The upgrade to DAI Multi-Collateral, the was released in November, required a full replacement of All previously published smart contracts. Although the Basic Attention Token (BAT) has been added as an option, ETH remained the most important option for collateral.
Migration from the old maker It was highly recommended, but not mandatory. However, this changed when The Maker project has implemented a number of exceptional measures in response to the Black Thursday 12 March incident where the protocol remained without capital.
While about 90% of Sai quickly became Dai, roughly $ 10 million remained in circulationendanger the protocol. As Cointelegraph previously reported, The main reason for the undercapitalization incident was the lack of liquidity during collateral auctions.
Comor the liquidity in Sai is even lower, The community was unable to take immediate action, such as the introduction of USDC collateral, and initiated a multi-stage process to end Sai.
From April 24thbegan a grace period that ends on May 11th. The stability rate similar to the maker interest rate has been lifted to encourage Sai holders to migrate.
Sai was officially closed on May 12. The holders can still redeem the stability fee for Dai and the collateral from ETH.
No more purist stable coins?
The decision to add the USDC it was somewhat controversial because of its centralized stablecoin status.
Despite these concerns, the decision was made to include Wrapped Bitcoin (wBTC) as the fourth security was adopted on May 2nd. As Cointelegraph has previously reported, wBTC uses a centralized storage bridge to bring a Bitcoin token to Ethereum.
During the token widely used in decentralized financing (DeFi)Many criticized this decision.
Nic Carter, co-founder of Coinmetrics, said “be really confused” for this decision as it reintroduces the financial system risk in an independent alternative to stablecoin.
Like the cryptanalyst Hasu (under his pseudonym), tweetedSai’s closure leaves “room for a puristic competitor”.
This competitor could be Synthetix with its SUSD token It is only supported by decentralized crypto streams. Framework Ventures’ Synthetix investor Michael Anderson told Cointelegraph that it was “the only truly decentralized stable coin on the market.”
The maker community, however not very impressed with Synthetix. Some criticized it for a much weaker relationship between collateral and synthetic assets. claims that it is supported by “thoughts and prayers”. Concerns were also raised about management’s access to smart contracts.
Rune Christensen, co-founder of Maker, I have never refrained from saying this decentralized security It has its place on the platform and mentions to Cointelegraph that it has a different risk profile.
He sees the combination of the two centralized and decentralized securities as a way to offset custody risks and volatility.
However, some members of the maker community pointed out that wBTC does neither, as it combines both the volatility of crypto and the custody risk of a traditional stable coin.