MakerDAO’s DAI Stablecoin Hits $100 Million Debt Cap as New Multi-Collateral Dai (MCD) Set to Release
DAI stablecoin, a non-collateral backed stablecoin that plays an instrumental role in keeping the De-Fi ecosystem moving has touched the 100 million debt cap, which means a total of 100 million DAI token have been minted until now. A data from the Ethereum Scan suggested that 72% of the total supply of DAI is held by just 100 accounts.
Earlier it was decided that the debt limit of DAI will be kept at 50 million, but a community voting in July 2018 increased the cap to 100 million using a smart contract designed for a one time increase in the debt cap of the token.
The milestone of reaching its debt cap is an important feat as it showed that the popularity of the de-fi ecosystem is on the rise, and an increasing number of people are seeing the advantage of using a pure decentralized financial platform where they can lend and borrow money on their own collateralized capital.
DAI stablecoin was created by MakerDAO and is quite different than the most popular stablecoin, USDT. While USDT and many other stablecoins are backed by some form of the reserve either in fiat, gold or even petroleum, DAI is purely based in algorithms where a user can generate DAI for their collateralized Ether governed by a smart contract. When the user returns the borrowed DAI on their Ether deposit along with the interest rate, they can get their collateralized amount back as well.
DAI Is set to see Certain Changes to its Protocol
MakerDAO the creator of DAI stablecoin has announced the release of a new multi-collateral Dai (MCD) on November 18. Along with the new MCD, the core team has also decided to make certain changes to the original DAI protocol.
As per the announcement, the current single collateral-based stablecoin would be known as SAI after the launch of MCD, and the new upcoming multi-collateral based token would be represented using the DAI ticker. The new MCD token can be withdrawn against multiple assets where different assets will be saved in their respective vaults.
However, the soon to be launched Multi-asset collateral debt token encountered a bug discovered by a white hat hacker which would have allowed for stealing of all the collateralized assets in a single transaction. The white-hat hacker was awarded $50,000 for the discovery.