The DAI stablecoin offers a steady and consistent value to a cryptocurrency asset, allowing consumers to easily use the asset for transactions or even cashing out. Though the DAI stablecoin was previously only able to work with Ethereum, an upgrade will expand the creation of the asset to include other ETH20 tokens as well.
- The multi-collateral DAI stablecoin is an upgrade to the current DAI stablecoin.
- Consumers will need to send their tokens to Coinbase or Coinbase Pro by December 2nd at 9:00am PST to automatically participate in the upgrade.
The DAI stablecoin has already been introduced by Maker, but there are new changes coming to the stablecoin. According to a new blog from Coinbase, the multi-collateral version of the DAI has been launched on November 18th, bringing new changes.
With the single collateral DAI that is presently available, the only cryptocurrency asset that can be used is Ethereum its creation. However, the changes with the multi-collateral DAI make it possible to create the asset with Ethereum and other ERC20 tokens, though Maker token holders will vote on whether the collateral types are eligible.
By December 2nd at 9:00 am PST, both Coinbase and Coinbase Pro will be supporting the new multi-collateral asset. When their support begins, the platform will automatically upgrade the DAI in the accounts of consumers on the exchange to the multi-collateral DAI. Members of the platform do not need to take any action on their own to make this upgrade happen; however, they will need to leave their current DAI holdings on Coinbase for the automatic change.
Consumers that hold their DAI in accounts that aren’t on Coinbase will need to send the tokens over before the conversion on the 2nd. However, if the user doesn’t want their DAI upgraded, the tokens need to be sold off or withdrawn from Coinbase by the conversion time. Users of the Coinbase Wallet app can upgrade on their own, as it supports both DAI versions and features an upgrade tool that can be used at any time after the switch.
In the event that users still have single collateral DAI in other accounts that are independent of Coinbase or Coinbase Pro, and they want to participate in the upgrade, they can transfer their holdings to Coinbase at any time. Though their DAI will not be automatically upgraded when they send it to their Coinbase account, the platform plans to run another upgrade in the new few months. Consumers will be notified at least two weeks before the next conversion takes place.