On November 18th, MakerDAO launched Multi-Collateral DAI (MCD), a significant upgrade to the existing single-collateral DAI stablecoin. This evolution expands the collateral options available for generating DAI, enhancing flexibility and stability in the decentralized finance (DeFi) ecosystem.
Key Differences Between Single- and Multi-Collateral DAI
- Single-Collateral DAI: Only Ethereum (ETH) could be used as collateral.
- Multi-Collateral DAI: Supports multiple ERC20 tokens (approved by Maker token holders) as collateral, diversifying risk and utility.
Coinbase’s Support for Multi-Collateral DAI
Coinbase and Coinbase Pro will begin supporting MCD on December 2nd at 9 AM PST. Here’s what users need to know:
Automatic Upgrade Process
- All DAI held on Coinbase will be automatically upgraded to MCD—no action required.
- Users can deposit DAI from external wallets before the upgrade deadline to have it converted by Coinbase.
Opting Out
- Sell or withdraw DAI before December 2nd to avoid automatic conversion.
- Use Coinbase Wallet to manually upgrade DAI anytime (supports both versions).
👉 Upgrade your DAI effortlessly with Coinbase Wallet
Post-Upgrade Options
- Missed the deadline? Deposit single-collateral DAI into Coinbase for future conversion (next upgrade planned in coming months).
FAQs About Multi-Collateral DAI
1. What happens to my existing DAI on Coinbase?
It will automatically convert to MCD on December 2nd.
2. Can I decline the upgrade?
Yes—withdraw or sell your DAI before the deadline.
3. How do I upgrade DAI stored elsewhere?
Send it to Coinbase before December 2nd or use Coinbase Wallet to self-upgrade.
4. What tokens back Multi-Collateral DAI?
Eligible ERC20 tokens (voted by Maker holders) alongside ETH.
5. Will Coinbase charge fees for the upgrade?
No—this service is free for users.
6. Is multi-collateral DAI more stable?
Yes, diversified collateral reduces systemic risk compared to ETH-only backing.
👉 Explore DeFi opportunities with Multi-Collateral DAI
For further details, refer to MakerDAO’s official announcement or contact Coinbase Support.
Notes:
- All hyperlinks except
https://www.okx.com/join/BLOCKSTARhave been removed. - Engaging anchor texts integrated naturally.