- Rune Christensen, the founder of MakerDAO, stated that PureDai, a future currency, will function as a completely decentralized substitute for Dai.
- PureDai will have a free-floating peg and utilize ether and stETH as collateral.
- It is anticipated that in a few years, PureDai will be available, and Dai holders would have the choice to upgrade.
The creator of MakerDAO, Rune Christensen, stated that PureDai, a future token, will function as a completely decentralized substitute for its stablecoin tethered to the US dollar.
The stablecoin, called PureDai, will only run on the Ethereum mainnet and rely entirely on decentralized oracles for collateral backing. It will utilize ether and Lido staked ether (stETH). Also, it will have a free-floating peg, which could mean that the decentralized stablecoin is not correlated with the US dollar.
According to Christensen, PureDai’s debut is targeted at people that want a fully decentralized vision. Owners of Dai DAI +0.27% will have the opportunity to switch to PureDai when it launches, which should happen in a few years.
According to Christensen on X, users of Dai in the future will be able to upgrade to PureDai, which is a return to the ideological foundations of Dai.
In the near future, MakerDAO will also launch NewStable, a different stablecoin, to complement PureDai. NewStable is seen as a simple enhancement to Dai as it is currently implemented, with an emphasis on regulatory compliance for real-world asset support while preserving Dai’s functionality.
In addition, Christensen said that PureDai, a second, fully decentralized stablecoin, will be made available as an alternative for people who favor the idea of pure decentralization, in addition to NewStable.
In 2017, MakerDAO introduced Dai, a stablecoin backed by decentralized assets like ether and other cryptocurrencies.
Later, the company changed its approach to incorporate real assets like US Treasury bonds. It made possible for users to mint Dai using the USDC stablecoin by utilizing the so-called peg stability module. Dai was forced to rely increasingly on centralized collateral options as a result.
Transitioning from Dai to PureDai
Though the launch of this new decentralized stablecoin with PureDai is expected to take several years, the founder of MakerDAO is now investigating the potential of doing so. According to Christensen, PureDai won’t need any manual updates when it launches and won’t have a “permanent connection to Maker MKR”
This coincides with the fact that Dai’s supply has increased significantly since the start of March, as has the demand for stablecoins like USDT and USDC. In just over two months, its supply has increased from 4.4 billion on March 10 to over 5.4 billion, an almost 25% rise.
Dai is intended to always be worth $1.00. By providing collateral to MakerDAO and issuing DAI in proportion to their collateral, users can create Dai as a loan. Each Dai that is released is appropriately backed because it is secured by assets valued at more than one dollar. By market capitalization, it is currently the third-largest stablecoin.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
