Cryptocurrency Q&A
What is multi-collateral DAI?
What is multi-collateral DAI?
Dario
Sun Oct 13 2024
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7 answers
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Multi-collateral DAI, also known as Dai 2.0, is an upgraded version of the stablecoin Dai issued by MakerDAO. Unlike the initial version which only allowed ETH as collateral, Multi-collateral DAI enables users to utilize various types of tokens as collateral to generate Dai. This diversity in collateral options aims to increase Dai's stability, expand its issuance, and mitigate risks associated with single-collateral volatility.
7 answers
SarahWilliams
Tue Oct 15 2024
The process of generating Dai involves leveraging collateral assets that have been approved by "Maker Governance." This community-driven organization plays a pivotal role in the management and operation of the Maker Protocol.
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TaekwondoMasterStrengthHonorGlory
Tue Oct 15 2024
Maker Governance is composed of individuals and groups who have a shared interest in the success and development of the Maker Protocol. They are responsible for organizing and overseeing various aspects of the system, ensuring its smooth functioning and continuous improvement.
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Leonardo
Tue Oct 15 2024
The approval of collateral assets by Maker Governance is a crucial step in the Dai generation process. Only assets that meet specific criteria and pass rigorous evaluation are considered eligible for use as collateral.
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Bianca
Tue Oct 15 2024
Once a user has secured approved collateral, they can then utilize the Maker Protocol to generate Dai tokens. These tokens are designed to maintain a stable value, making them an attractive option for individuals and organizations seeking a reliable digital asset.
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Carolina
Tue Oct 15 2024
The DAI Stablecoin is a product of the Maker Protocol, also known as the Multi-Collateral Dai (MCD) system. This innovative platform allows users to engage in a unique financial activity - the generation of Dai tokens.
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