Information, tales, and bulletins from Maker.

31st October 2019

Multi-Collateral Dai (MCD) shall be launched on November 18, and together with its new options will come a vital change in terminology: “Collateralized Debt Place (CDP)” shall be changed with “Vault.”

Moreover, to assist customers and others distinguish between Dai generated by way of SCD and Dai generated by way of MCD, we’ll start referring to SCD-generated Dai as Sai, and MCD-generated Dai as Dai. We urge all within the Maker group and within the media to do the identical. Whereas this isn’t a terminology change, it’s a key level of consciousness round most popular language.

As we within the Maker Basis work to bootstrap MakerDAO, we don’t make selections like these evenly.

Why Make Terminology Change?

The launch of Multi-Collateral Dai will introduce new sorts of collateral and extra Dai into circulation, and can welcome new teams of customers. Because the improve from Single-Collateral Dai (SCD) to MCD was deliberate, we noticed a superb alternative to overview how present terminology may or may not be understood by a bigger viewers, lots of them newcomers to the Maker Protocol. 

One time period that got here up for overview instantly is Collateralized Debt Place (CDP). After talking with quite a lot of customers, we discovered that some discover the phrase “collateralized” complicated as a result of it makes them consider conventional monetary merchandise that don’t have anything to do with what a CDP affords. Moreover, as a result of MCD will permit various kinds of belongings as collateral, some individuals are already utilizing the time period “CDP” to imply all the things a consumer holds within the Maker Protocol, whereas others are utilizing it to imply every kind of collateral deposited.

Subsequently, to cut back the prospect of confusion transferring ahead, we’ve got created a brand new time period:  Vault. 

The Maker Vault in MCD is the place a consumer deposits collateral and generates Dai. Importantly, every collateral asset deposited could have its personal Vault. That will help you acquire a stable understanding, think about how the phrase is utilized in two eventualities:

State of affairs one: Bob needs to generate Dai utilizing ETH as collateral within the Maker Protocol. To take action, Bob deposits ETH right into a Vault. Every collateral kind could have its personal Vault, so Bob will doubtless have an ETH Vault, a BAT Vault, and a Vault for every further collateral kind he makes use of to generate Dai. He may also have Vaults with completely different ranges of collateralization. 

State of affairs two: Alice needs to withdraw all of the BAT collateral in her Vault. To take action, she should pay again the quantity of Dai she generated earlier, in addition to the accrued Stability Payment. As soon as Alice receives her collateral, the system doesn’t “shut” her Vault. As a substitute, the Vault stays on the blockchain empty till she chooses to make one other deposit.

Shifting With the Change

The brand new terminology shall be mirrored throughout the consumer interfaces of Maker Protocol instantly upon the discharge of MCD, in addition to in any new documentation revealed any more. Current documentation, of which there’s fairly a bit, shall be modified over time to incorporate the brand new verbiage.

For the Dai.js SDK and comparable instruments, there aren’t any plans to vary precise operate names that include “CDP.” Nonetheless, the documentation for Dai.js shall be up to date.

Lastly, and importantly, for the present Single-Collateral Dai (Sai) deployment, no modifications shall be made to terminology. The CDP Portal frontend and the documentation related to SCD will nonetheless discuss with CDPs.

Subsequent Steps for Customers 

Customers should not have to take motion besides to easily keep in mind that, when MCD launches, if you’re used to depositing collateral in a CDP to generate Dai, you’ll as a substitute deposit collateral in a Vault from which Dai shall be generated.

Please be a part of us in our mission to form the way forward for commerce on the blockchain. To be taught extra about MCD, learn our MCD-related weblog posts. To be taught extra about MakerDAO, be a part of the dialog on the Maker Discussion board.

Supply hyperlink