Dai Stablecoin Reaches 100mln Debt Limit Prior to Collateral Protocol Upgrade
The 100 million token debt ceiling of Dai (DAI) stablecoin has been reached, implying that the number of Dai tokens mined so far is 100 million.
Info from Etherescan indicates that the top 100 investors of the stablecoin, based on Ethereum blockchain, hold more than 72% of all Dai tokens.
The stablecoin initially had a maximum limit of 50 million token. In July 2018, the Dai community voted to raise the debt ceiling to 100 million DAI by choosing a new protocol – a single use smart contract – that would raise the cap.
Dai, which was developed by MakerDAO, enables utilizers to borrow or produce Dai by staking their crypto reserves as collateral. Contrary to other currency-pegged stablecoins,
Dai is not backed with bouquet of reserve currencies but by locking Ether (ETH) into a smart contract where the token will function as CDP (collateralized debt position).
Once a user clears the Dai loan with interest of 0.5% per year, the Ether deposit will be released.
On 9th of last month, Rune Christensen, CEO of the Maker Foundation, stated that a multi-collateral Dai (MCD) will be released later this month. With the launch of the new coin, MakerDAO will implement modify the classification of its current asset.
The prevailing Dai stablecoin, referred to as single-collateral Dai (SCD), will hereafter be called as “Sai,” following the launch of MCD. The latest MCD will consequently have the “Dai” label as its forerunner.
The word implies that MCD will permit users to stake several types of assets as collateral. CDPs for various assets will be referred as “vaults” i.e., Ether will be secured in an Ether vault, while Basic Attention Tokens (BAT) would be stored in a BAT vault.
Last month, a HackerOne user released a document that disclosed a serious vulnerability in MakerDAO’s intended MCD upgrade. The vulnerability could have permitted a hacker to loot all the collateral held in the MCD system in one transaction. The white-hat hacker who identified the bug was rewarded $50,000.