Millions of Online Retailers Can Now Accept DAI on Coinbase Commerce

Coinbase Commerce, a platform that supports cryptocurrency payments for internet retailers, has added MakerDAO’s DAI stablecoin as a supported payment method this week

This integration will let merchants around the world accept the USD-pegged stablecoin as payment for goods and services without Coinbase Commerce taking any extra fees.

Merchants can add a “pay with crypto” button to their checkout process, or choose to accept DAI only. Shop owners can also currently earn a DAI savings rate of 7.5%.

This could open doors to over 800,000 stores and 3 million web shops on Shopify and WooCommerce, as well as anyone else seeking a way to accept decentralized stablecoins as payment. It also introduces merchants to a growing segment of the cryptocurrency market, letting them bridge the gap between DeFi app developers and their own businesses. 

DeFi (decentralized finance) is a popular movement sparked by cryptocurrency and blockchain technologies, bringing conventional financial services to the crypto sector.  

Rune Christensen, CEO of the Maker Foundation, told Cointelegraph a few months ago that:

“DeFi is a new generation of products that are entirely transparent, where users can see exact cash flows while achieving greater levels of trust and security that can be audited in real time. DeFi also incorporates the global nature of blockchain and its advantages, making these more efficient systems with lower fees and higher yields.”

Source Cointelegraph

OKEx Debuts Dai Stablecoin Staking Bonus as Tether Dwarfs Volumes

Malta-based cryptocurrency exchange OKEx has added support for a new feature that allows users of stablecoin Dai (DAI) to earn interest by staking their holdings.

In a blog post on Dec. 17, OKEx confirmed users can now stake their Dai via its in-house mining pool, Pool. In return, they will earn 4% interest via the so-called Dai savings rate (DSR), along with an added incentive from OKEx itself.

OKEx lures Dai investors

The move makes the exchange the first major trading platform to integrate DSR, and the feature will go live on Dec. 23.

“On December 23, users of the OKEx platform will be able to directly deposit Dai and stake it in the DSR to earn the savings rate plus an additional reward that is exclusive to OKEx—all without leaving the OKEx platform,” the blog post stated.

Maker, the entity behind Dai, launched the DSR scheme last month. Since then, holders have locked up around $16 million worth of DAI, corresponding to dividends of around $640,000.

Tether trades billions more per day

Nonetheless, in terms of overall volumes, Dai, along with all the other stablecoins on the market, pales in comparison to stalwart Tether (USDT).

According to data from analytics firm Messari, USDT trailing daily volume dwarfs its competitors — as of Dec. 3, the most recent date for which data is available, Tether’s figure was over $19 billion. By contrast, the second-largest stablecoin by volume, TrueUSD (TUSD), managed just $118.5 million. Dai’s figure for the same date was $1.65 million, or 200% less than Tether.

Eyeing its future potential, OKEx nonetheless remained upbeat. “With the OKEx integration, adoption of the Dai Savings Rate can accelerate in Asia, introducing millions more people to Dai,” the blog post continued.

As Cointelegraph reported, cryptocurrency payment gateway BitPay added support for three U.S. dollar stablecoins earlier this month, but conspicuously left out Tether.

Source Cointelegraph

Coinbase Card Rolls out DAI as First Supported Stablecoin: Official

Coinbase Card, a crypto-powered Visa debit card from major crypto exchange Coinbase, now supports Dai (DAI), a stablecoin pegged to the United States dollar.

According to a blog post on Dec. 6, Dai is the first stablecoin that is available on Coinbase Card, alongside major cryptocurrencies such as Bitcoin (BTC) and Litecoin (LTC).

As 1 DAI is equivalent to $1, the addition of the stablecoin to the Coinbase Card aims to allow customers to spend crypto with less volatility, the announcement says.

Cointelegraph has requested comment from Coinbase’s team on why the company has decided to choose DAI rather than one of multitudes of U.S. dollar-pegged stablecoins. Coinbase has not responded as of press time. This article will be updated upon receipt of their commentary.

More than one new asset to spend

However, the addition of DAI is not just one more asset to spend but a tool intent on boosting global adoption of alternative payment methods, according to Coinbase’s head of growth marketing, JD Millwood. He wrote:

“It represents a small step on our big journey to make crypto accessible to all, through alternative payment options that suit our diverse customer base.”

Coinbase Card now supports a total of 10 cryptocurrencies

Launched in April 2019, Coinbase Card is a Visa debit card that allows users to spend cryptocurrencies to pay for goods as well as to withdraw cash from ATMs. Instantly converting customers’ crypto into fiat currency, the card was first rolled out in the United Kingdom. In June, the card was launched in six European countries including Spain, Germany, France, Italy, Ireland and the Netherlands.

According to the Coinbase’s official website, Coinbase Card now supports a total of 10 cryptocurrencies including Bitcoin, Ether (ETH), Litecoin, Bitcoin Cash (BCH), XRP, Basic Attention Token (BAT), Augur (REP), 0x (ZRX), Stellar Lumens (XLM), and Dai.

Dai is different from major U.S. dollar-pegged stablecoins

Meanwhile, DAI is one of many stablecoin projects pegged to the U.S. dollar alongside controversial project Tether (USDT), Gemini Dollar (GUSD) and USD Coin (USDC).

However, DAI is different from a typical currency-backed stablecoin because it is not supported by bank accounts of reserve currencies but rather is generated by putting Ether into a CDP smart contract, as previously reported.

Source Cointelegraph

Maker Launches New Dai Today, Expects to Phase-Out Old Dai in Months

Decentralized autonomous organization (DAO) Maker will launch a new type of Dai (DAI) stablecoin today. Known as Multi-Collateral Dai (MCD), the new type of the DAI will be backed by several types of collateral in contrast to the existing Single-Collateral Dai (SCD), which will now be called Sai (SAI). 

While Maker previously announced the new protocol in October, the firm provided an update on the upcoming changes to Dai in a post on Nov. 18.

As per the announcement, the launch of MCD will not require any action from Dai users today. Maker said it will be monitoring developments closely and will update users when action is required.

Maker plans to gradually phase-out old DAI in several months

Maker plans to gradually phase-out Sai. While Maker does not have an exact date for the full shift to MCD and expects it to come in several months from the launch, the startup says it will help users convert their SAI to MCD in advance, according to the post.

Specifically, Dai users will be able to convert their SCD to MCD via the Argent wallet soon after Nov. 18, Maker noted. According to an Argent tweet today, the SAI-DAI conversion feature will be released in the coming weeks.

MCD users will be able to earn interest from holding Dai tokens via Compound protocol

Additionally, the new Dai will be available on the Compound protocol, which will allow users to earn interest from holding Dai tokens. In order to start earning interest from Dai, users will have to remove their old Dai from Compound and move the converted MCD back into Compound, Maker explained. While Compound confirmed their plans for Dai integration in mid-October, there is no specific date set for the change, according to Maker.

MCD system’s launch plans were first revealed by the Maker Foundation’s CEO Rune Christensen in mid-October. The launch of MCD is expected to unlock two key features — the Dai Savings Rate as well as new collateral types for collateralized debt positions (CDPs), which is another important aspect of the Dai’s smart contract ecosystem.

As reported, Dai is different from typical currency-backed stablecoins as it is not supported with bank accounts of reserve currencies but is generated by putting Ether (ETH) into a CDP smart contract. In early November, the Dai stablecoin hit its 100 million token debt ceiling ahead of the collateral protocol upgrade.

Source Cointelegraph

Dai Stablecoin Hits 100M Debt Ceiling Ahead of Collateral Protocol Upgrade

The Dai (DAI) stablecoin has reached its 100 million token debt ceiling, meaning that there are currently 100 million Dai tokens minted. 

Data from Etherescan shows there are the top 100 holders of the Ethereum-based stablecoin hold over 72 percent of all Dai tokens. 

The stablecoin originally had an upper limit of 50 million tokens. In July 2018, the Dai community voted to increase the debt ceiling to 100 million DAI by appointing a new authority — a one-time use smart contract — that would increase the limit. 

A change in Dai’s collateral protocol and nomenclature is forthcoming 

Dai, which was created by MakerDAO, allows users to borrow or generate Dai by staking their cryptocurrency holdings as collateral.

Unlike other currency-backed stablecoins, Dai is not supported with bank accounts of reserve currencies but rather is generated by putting Ether (ETH) into a collateralized debt position (CDP) smart contract. 

Once a user repays the Dai loan at an interest rate per annum of 0.5%, they get their Ether deposit back. 

On Oct. 9, Rune Christensen, the CEO of the Maker Foundation announced that they would release a multi-collateral Dai (MCD) later this month. With the release of the new coin, MakerDAO will make some changes to the nomenclature of its current asset.

The current Dai stablecoin, which is a single-collateral Dai (SCD), will become known as “Sai” when the MCD launches on Nov. 18. The new MCD will subsequently carry the “Dai” monicker of its predecessor. 

As the term would imply, MCD will allow users to stake multiple types of assets as collateral. CDPs for different assets will become known as “vaults” i.e. Ether will be stored in an Ether vault, while Basic Attention Tokens (BAT) would be stored in a BAT vault. 

Critical bug discovered in MCD upgrade

On Oct. 1, a HackerOne user published a report that revealed a critical bug in MakerDAO’s planned MCD upgrade. The bug could have allowed a hacker to steal all the collateral stored in the MCD system in a single transaction. The white-hat hacker who discovered the vulnerability was awarded $50,000 for the discovery.

Source Cointelegraph

DAI in a Visa Card, Tether Sees Use in E-Commerce

Ethereum-based decentralized stablecoin DAI is now spendable where VISA cards are accepted and leading stablecoin Tether (USDT) is seeing increasing use by e-commerce organizations.

DAI now usable in E.U. stores

According to a press release shared with Cointelegraph Oct. 29, collaborative financial platform 2Gether added DAI support to its platform. A spokesperson claimed that this is the first stablecoin added to the platform.

As a result of the addition, 2Gether users can now spend their DAI like euros, without fees, anywhere where Visa is accepted with the dedicated card. Furthermore, 2Gether will also enable DAI holders to buy and sell 13 cryptocurrencies, without fees, and send DAI to external addresses. The firm explains what it hopes to achieve with the addition of the crypto asset to its platform:

“The addition of Dai to 2gether’s crypto catalog offers the possibility of operating with a cryptocurrency that’s both decentralized and stable at the same time.”

E-commerce picks up on Tether’s USDT

Paolo Ardoino, chief technical officer at both Tether and crypto exchange Bitfinex, told Cointelegraph that Tether is expanding to e-commerce organizations and claimed that Tether is an effective way to improve the speed of activity, since it is faster than credit cards and traditional payment systems. He noted:

“Merchants need to have a stablecoin in order to protect their businesses from the volatility of other crypto assets such as Bitcoin. Tether is being widely used by merchants and e-commerce outfits but as this is a new trend we are still collecting and evaluating the data.”

This is in line with recent reports that USDT is gaining popularity as a payment method, with some analysts seeing it catching up with Bitcoin (BTC) and Ether (ETH).

That being said, the future of stablecoin use as means of payment is in danger given that the United States Congress is considering a draft bill that claims all managed stablecoins must be seen as investment contracts and therefore as securities.

As Cointelegraph reported earlier today, the German government announced the intention to forbid stablecoin adoption, declaring:

“It will be ensured that stablecoins do not establish themselves as an alternative to state currencies and thus call into question the existing monetary system.”

Source Cointelegraph

Maker Foundation’s Multi-Collateral Dai to Launch on Nov. 18

Rune Christensen, the CEO of the Maker Foundation, has revealed that the Multi-Collateral Dai (MCD) system will be ready to launch on Nov. 18.

Speaking at Devcon 5 in Osaka, Japan, Christensen urged all holders of MakerDAO’s MKR token to cast their votes on November 15.

Dai Savings Rate, new CDPs

MCD is a decentralized blockchain-based system designed to encompass Maker smart contracts, front-end apps, tools and services. 

MakerDao’s announcement points out two core features of the Maker protocol that will be heralded by its planned November launch: first, the Dai Savings Rate (DSR) — an MCD feature that allows DAI (DAI) stablecoin holders to lock their tokens in a smart contract to earn additional ones — as in a savings account.

Second, the release will provide new collateral types for Collateralized Debt Positions — another smart contract integral to the Dai stablecoin system.

MakerDAO claims that the launch of the MCD represents a major milestone, paving the way for the Maker protocol integration on the backend of Decentralized Finance applications.

In addition to reviewing and voting on the terms of the DSR, MKR holders will also be provided with documents to analyze the risk parameters for the two first tokens to be evaluated by MakerDAO’s interim risk team: Basic Attention Token (BAT) and Ether (ETH).

HackerOne user found critical MCD bug ahead of release

As Cointelegraph reported on Oct. 3, a HackerOne user disclosed a report revealing a critical bug in the planned MCD release. It was identified during the testing phase and before any users gained access to the system.

The bug could have reportedly allowed an attacker to steal all of the collateral stored in the MCD system — possibly via a single transaction. In return for the critical finding, the user was awarded a $50,000 bounty from MakerDAO’s bounty program.

Source Cointelegraph

Ether Price Drop Shakes DAI Stablecoin Peg, Two Collateral Contracts Closed

The recent Ether (ETH) price drop showed the reliability and weaknesses of the decentralized stablecoin built by MakerDAO, Dai (DAI), and the decentralized finance (DeFi) ecosystem built on top of it.

A decentralized stablecoin

Ethereum-collateralized decentralized stablecoin DAI managed to maintain its peg to the United States dollar as Ether lost over 18% of its value in under two hours, falling from $190 to $155 yesterday. As of press time, Ethereum holds a price of about $171.

Ethereum seven-day price chart. Source: Coin360

The impact of higher transaction fees

DeFi protocol management service DeFi Saver announced in a tweet on Sept. 24 that, because of heavy congestion on the Ethereum network, the system “struggled to execute all needed Collateralized Debt Position (CDP) ratio adjustments in time.” A CDP is a type of loan administered by a smart contract central to the functioning of the DAI stablecoin.

While MakerDAO plans to add support for other assets, so far only Ether is accepted as collateral for opening CDPs. CDPs facilitate the creation of Dai against collateral which is held until the DAI is returned. As DeFi Saver explained in a separate tweet, “MakerDAO has a mechanism in place that automatically liquidates CDPs once their collateralization ratio has dropped below 150%.”

The company offers an independent service preventing the automatic CDP liquidation built on top of MakerDAO’s ecosystem. However, the company admits that — because of network congestion and transaction fees — the system “failed to protect 2 monitored CDPs, which have been liquidated in the process.” Still, the firm announced that it intends to compensate the two users affected by the malfunction:

“Although our automated protection is still in beta, our team is disappointed to have let some of our users down and we are willing to recuperate the losses suffered. […] We ask the owners of these two CDPs to please reach out.”

An optimist perspective

On the other hand, the company also noted that “20 unique CDPs have been automatically protected by the system during this recent crash.” DeFi Saver also notes that it adjusted the system to the current transaction fees and that automation is working properly.

The author of “Mastering Bitcoin,” Andreas Antonopoulos, pointed out the development on Twitter. When another user suggested that the situation is a demonstration that the DeFi ecosystem does not work properly, Antonopoulos responded:

“Not really. It seems like DAI maintained the price parity, the CDP protection contracts worked in all but two cases. This was a good test and things worked pretty well”

As Cointelegraph reported in June, throughout May 2019, United Kingdom-based nonprofit organization Oxfam International executed a month-long trial that saw MakerDAO’s DAI stablecoin distributed as a means of exchange among citizens of Vanuatu.

Source Cointelegraph