THELOGICALINDIAN - Maker shows how badge migrations should be done
After afterlight and brief the DAI stablecoin from its antecedent anatomy to its latest iteration, Multi Collateral DAI, Maker has conducted the aboriginal above badge upgrade, proving that badge migrations don’t accept to be cumbersome.
From SAI to DAI
The addition of Multi Collateral DAI (MCD) sparked activity to a new abstraction of agreement and badge innovation. Rather than advance tokens via cipher changes, Maker deployed a new acute arrangement with beginning cipher to advance DAI. The old DAI is now alleged SAI, or Single Collateral DAI.
Notable changes from MCD accommodate the DAI Savings Rate, Basic Attention Token (BAT) as accessory for loans, and a arrangement surplus bargain to abolish arrangement debt.
Since November 2024, a net absolute of 56.56 actor accept been migrated from SAI to DAI application Maker’s clearing facilities. Close to 101 actor DAI were in actuality above-mentioned to MCD, advertence a asperous clearing amount of 56%.
A above acumen for MCD’s success has been abiding abutment from the DeFi ecosystem.
From lending avenues like Compound and dYdX to wallets like MetaMask, DeFi protocols took it aloft themselves to affluence user burdens and advice facilitate clearing from SAI to DAI after application Maker’s clearing tool.
Without abutment from added DeFi projects, it is abreast absurd to accept that Maker could accept pulled off the clearing alone. Compound accustomed users to accumulate their cToken balances complete during the clearing action which absent abroad a lot of added processes. This helped these users advancement to the new DAI with the bang of a button.
These changes were fabricated afterwards confined the all-important time lock for ambassador changes, so users could abolish their funds if they didn’t appetite to advancement from SAI to DAI. The aforementioned holds for dYdX’s clearing too.
Spurring Token Innovation in DeFi
MCD has set an important antecedent for protocols that appetite to change their badge bread-and-butter models. The aberration amid deploying a new acute arrangement rather than aloof afterlight the arrangement is affiliated to adamantine forks and bendable forks, respectively.
However, rather than claiming tokens as one would during a alternation fork, MCD has to be migrated from the aboriginal arrangement to the additional or artlessly minted on the additional contract.
The accent of this has been undersold so far.
Apart from the value overflow incident, Bitcoin’s adamantine forks, including Bitcoin Cash and Bitcoin Gold, accept been contentious.
Taking heed from this, abounding in the Ethereum association believed that amusing accord over MCD would be a barrier to boundless implementation. This anecdotal addle abroad as DAI acquired bulge over SAI as the stablecoin of choice.
While there is still action application the SAI stablecoin, it is negligible compared to DAI. The end aftereffect of this is a acknowledged clearing of action from SAI to DAI.
If the DeFi ecosystem comes calm to advice facilitate badge migration, there is about annihilation to stop it. MCD was able-bodied accustomed by the community, so there was little altercation from the community. However, if there was, amalgamation calm as they accept to oppose ProgPoW would be the community’s best adventitious at endlessly the badge clearing from succeeding.
As a new aeon in the bazaar approaches and crypto-native investors become added selective, tokenized projects will accept to angle out to accretion attention. This requires convalescent the agreement and the economics of its token.
Migrations, which were ahead apparent as taboo, now accept a acknowledged archetypal to chase in Maker’s Multi Collateral DAI.
