The shutdown of Single Collateral Dai (SAI) took place successfully yesterday, and they have now all been converted to Multi Collateral Dai (MCD), a protocol that allows having other assets as collateral to issue the DAI stablecoin.
The event had already been scheduled for some time with the date set yesterday afternoon, May 12th, 2020 (here the transaction). This way all SAI have been converted to ETH, or rather WETH.Â
Those who have not yet converted their SAI can use the dedicated platform to convert their SAI to ETH.
Migrating from SAI to DAI
This migration marks the end of a very fruitful era that has enabled decentralized finance (DeFi) to lay its foundations.
Since the announcement of this transition from SAI to DAI, there have been many changes and problems in the industry.
For instance, the various hacker attacks against different platforms in the DeFi world and the crypto crash in March, during which it was thanks to MCD that it was possible to mitigate the damage by introducing the use of the USDC stablecoin to provide more liquidity to the industry.
These events also showed the weaknesses of DeFi in extreme situations, since the Maker DAO problem during the crypto crash was solved using a centralized stablecoin.
A certainly paradoxical decision and one that has been rather criticized by the crypto community: in fact, DAI is a decentralized project that has turned to USDC, which is centralized, which perhaps testifies that complete decentralization is still a utopia.
The evolution of DeFi
However, the decentralized finance sector is evolving fast and at the beginning of the month there has been the introduction of wBTC, a bitcoin pegged asset that now has over $20 million locked up.
Moreover, pTokens, assets pegged to the value of BTC but based on several other blockchains to facilitate interoperability between different protocols and create more liquidity, have also been doing well for some months now.
