In a few hours, an update of Maker DAO will be implemented which will lead to the creation of the new Multi-collateral DAI.
DAI is an algorithmic stablecoin whose value matches 1 dollar. Until now, before the update, DAI worked by means of a smart contract that, through a CDP (Collateralised Debt Position), was able to only block the crypto Ethereum (ETH).
Until today, before this update, DAI was only collateralised in ETH, whereas soon it will become multi-collateralised: for example, Maker DAO has added BAT (Basic Attention Token) of the famous Brave browser.
Since the DAI stablecoin is based on a smart contract that currently only provides for collateralisation in the ETH crypto, a real update of the system will be necessary in order to be able to add any new collateral.
This update will result in the old DAI being called SAI, as Single Collateral.
While the new Multi-Collateral DAI will keep the name of DAI, as explained in the image below.
Given this update, users will have to convert their old DAI to SAI, considering that after the update the old system will lose value.
In any case, the migration procedure will last for several hours and therefore users will have plenty of time to take the necessary precautions. In addition, some exchanges such as Kraken will perform the procedure automatically.
How to convert DAI to SAI
In order to proceed manually and convert DAI to SAI, it is possible to use different methods such as migrate makerdao.
In the case of having DAI locked in third-party apps, for example Compound, it will be necessary to unlock them first.
The same applies to cDAI, which will then be replaced by cSAI: to do this it will be necessary to first transform them into DAI and then follow the above-mentioned procedure.