2% of the Sai supply was liquidated today

Sai, formerly Dai has seen $1.2 million in liquidations today with a supply of $45 million. A few months ago, Sai’s supply was around $100 million before the release of the new Multi-Collateral Dai, which is now called Dai. Sai is created by collateralizing Ethereum worth 150% of the Sai a user is taking out.

LoanScan is a great website to look at statistics in the DeFi space. We found the amount of Sai liquidations today through their “Collateral Liquidated.” Maker Liquidations

As you can see, this isn’t the biggest spike in liquidations in the past month. Around November 20th, the price of Ethereum dropped around twice what it has in the past few days and liquidated $2 million worth of Sai. November 18th is when Multi-Collateral Dai released, so that could have had an impact as well.

The minimum collateral of Ethereum to Dai in Maker’s system should be around 150%. Maker’s Collateral ratio is getting eerily close to that point having dropped from 315% to 235% within the past month. Reaching around 115% would essentially destroy the system.

On the same token, Maker doesn’t really care if Sai fails because they are planning to call on an emergency shutdown anyways. Maker is proud of their new innovations in Multi-Collateral Dai and would like everyone to manually convert their Sai tokens to Dai before the emergency shutdown begins.

Because of Ethereum’s price volatility, users that have Sai CDPs have been dumping more Eth into their contract in order to avoid liquidation. Today, about $8 million USD in ETH was added to Maker’s Sai contracts according to LoanScan.

I think everyone in the industry is hoping that prices don’t fall for too much longer. Bitcoin is getting very close to the $6k support levels that price bounced off of for around 10 months in 2018. Pushing below that support once again could be bad for Bitcoin and the rest of the industry on a macro scale.

The vote for Multi-Collateral Dai is now active

MakerDAO just announced on Twitter that MKR holders can vote for the activation of Multi-Collateral Dai. If the vote is passed, Multi-Collateral Dai will be released no later than Monday, November 18th.

Maker’s utility token, MRK is a bit harder to come across than DAI, but holders of it determine a variety of Dai’s parameters. MKR holders vote for the stability fee, savings rate, debt ceiling and now they are voting what is essentially a hard fork of traditional Dai.

MakerDAO has been very confident that the vote will pass, with Founder Rune Christensen saying that it “will” be activated on the 18th. The team does not talk about the vote as often as they talk about when it will be implemented.

MKR holders have a bad record of participating in votes, and in the past there have been circumstances where one voter determined the entire outcome of the stability fee.

The Ethereum core developers don’t allow holders to vote because they believe that people most active in the community should determine the future of the network. MKR is difficult to get, at least in the U.S., so the learning curve to acquire it acts as a way to filter casual users out of the voting process for Dai.

Currently, Dai is only backed by Ethereum, but once Multi-Collateral Dai is implemented, Maker will be able to back it with coins such as BAT, REP and 0x. Christensen has even talked about collateralizing Dai with real world assets, but it doesn’t seem like they plan to do that anytime soon.

If the vote is passed, all holders of Dai and users in collateralized debt positions with Maker will have to manually convert their (now-called) Sai to (MCD) Dai. You can find out how to do that here.

When Multi-Collateral DAI releases, watch SAI die on this site

Mariano Conti, Head of Smart Contracts at the MakerDAO Foundation announced a new site called Sai Sats today on twitter. The site acts as a live feed for information such as Sai supply, the debt ceiling, Ethereum locked and the Collateralization Ratio.

In eight days, Multi-Collateral DAI will release which Maker recommends everyone upgrade to immediately. Being able to see SAI supply drop in real could have an influence on the immediacy users feel about upgrading.

Either way, it’s nice too have a page reminiscent of the U.S. Debt Clock¬†for everyone’s favorite decentralized stablecoin.¬†Conti confirmed with Cryptocult that a similar site with statistics for Multi-Collateral DAI will be available on or shortly after its release.

“Don’t know if I’ll have it ready for release, but it’ll be close!” – @nanexcool

A lot is happening in the Maker world in the upcoming weeks. MCD will be voted on November 15th, implemented on the 18th, and listed on Coinbase shortly after. All holders and people with CDP positions will be responsible for upgrading their SAI (DAI) to DAI (MCD) or risk losing stability on their asset.

If adoption doesn’t happen quickly, users will be able to see it in live time on the SAI stats website.

 

Multi-Collateral DAI will be listed on Coinbase within weeks of release

Cryptocult just confirmed with Coulter Mulligan, Head of Marketing at MakerDAO that the Multi-Collateral iteration of DAI will be listed on Coinbase within 1 to 3 weeks of its release.

“Unsure of the exact date but they plan on adding Dai (MCD) in first 1-3 weeks so either the change will happen Nov 18 or shortly after.” – Coulter Mulligan

When MCD is released, it will be called DAI and the old, single-collateral DAI will be called SAI. According to Coulter, the current DAI will change to SAI either once MCD is listed or when it is released.

It will be important for current SAI holders who don’t keep up with Maker announcements to realize that they are holding a stablecoin that could soon be subject to volatility. A good way to do this is through Coinbase notifications and users realizing that their stablecoin now has a different name.

There is a DAI-ETH pair on Coinbase pro that has decent trading volume, but those people will have to pull their DAI into a Ethereum wallet in order to upgrade to MCD.

If you hold any $Dai today, either in a wallet, CDP or on an exchange, you must upgrade when MCD is released.” – @makerdao

How to convert your SAI to DAI (MCD) and migrate CDPs

Soon, MakerDAO will be cutting support for SAI to focus on the upgraded stablecoin, DAI. This means that anyone who holds SAI on an exchange, in a wallet, or has a SAI CDP will need to convert their holdings to DAI. Eventually, MakerDAO will be initiating a global settlement phase, where DAI will be subject to more extreme volatility.

Preface: Traditional DAI is now called SAI and Multi-Collateral DAI is referred to as DAI. This is because the former DAI is single-collateral DAI, only backed by Ethereum and the upgraded, Multi-Collateral DAI can be created with various assets.

You’re holding in an¬†Ethereum Wallet

If you have SAI laying around in a wallet for whatever reason, Maker has made the conversion process very easy for you. They have not listed support for specific wallets, but as long as it is ERC-20 and Web3 compatible, you should be able to login to their site with it.

  1. Go to migrate.makerdao.com
  2. Login with your wallet
  3. Choose how much SAI you would like to convert
  4. After confirming, DAI will appear in your wallet

The only requirements that Maker acknowledges is that it is a wallet where you hold your private keys.

Converting a CDP 

If you have a SAI CDP, you will have to move it to the “MCD CDP Core” through the same migration service that holders use. If your CDP was created on Instadapp, there it will require an extra process of taking ownership of your CDP.

There will be an unspecified, but generous amount of time in which users can migrate their CDP. Users will not have to pay their CDP back in full, but are required to pay a stability fee during the transaction. If a user is holding a large CDP position, it will not go through unless there is enough liquidity to cover the migration.

  1. Go to migrate.makerdao.com
  2. Login with your wallet
  3. Select CDP to be migrated and click migrate
  4. Submit transaction, if requirements are met, the CDP will migrate

Your DAI is on an exchange 

You won’t be able to convert SAI to DAI from any exchange at launch. This means that you will need to find an Ethereum wallet so you can send your SAI over and log into Maker’s site. We recommend MetaMask as it is one of the most popular and easy to use Ethereum compatible wallets.

  1. Create Ethereum wallet on a Web3 compatible browser like Chrome, Brave or Firefox.
  2. Head to the withdraw page on your exchange and enter your wallet’s address
  3. Add a small amount of Ethereum to your wallet to cover any gas charges (<$5)
  4. Follow steps from the “You’re holding in an Ethereum wallet section above”

It shouldn’t be too stressful

Maker has historically been on top of the game in regards to user interface and experience. They have always had a straightforward method of creating CDPs and voting for changes with DAI. Judging by their record, your transitioning experience should go pretty smoothly.