Coinbase has announced an upgrade from its current single-collateral DAI to a multi-collateral DAI stablecoin.
In the new upgraded multi-collateral DAI, traders can use both the Ethereum and other ERC20 tokens to create DAI, whereas, the old single-collateral DAI version could use only the Ethereum tokens.
The new multi-collateral version will be launched on December 2, 2019. On the launch day, any single-collateral DAI will be converted to multi-collateral DAI automatically. The users don’t need to take any action to automate it. They just need to keep their DAI on the Coinbase platform.
Instructions for the Traders
Coinbase has issued an official statement about the upcoming launch plans. It has asked the customers to follow few points:
- If the users are not interested in upgrading the existent DAI tokens or wanting to sell or withdraw them, they can do it before the launching date.
- The customer can do the upgradation by using the Coinbase Wallet app. This app supports both forms of DAI’s and offers a simple upgradation tool that can be used anytime.
- The company proposes another upgradation event in the next few months for those who are left out during the current upgrade event. The company will issue a prior notice of 2 weeks before the next up-gradation event.
Coinbase is the San Francisco based company in California, which was founded in 2012. It provides a platform and digital currency Wallet to traders, where they can transact multiple cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, etc.
The company aims to create a globally open financial system that is not controlled by any nation or private entity. It believes that the new system will lift the world from poverty and will create equality. The company uses DRI’s (Directly responsible individuals) in all of its projects, which directly impact the customers.