MakerDAO unveils PureDai: A decentralized stablecoin with no dollar peg

MakerDAO, the decentralized autonomous organization that created the Dai stablecoin, has revealed intentions to launch a new stablecoin called PureDai. This step is intended to provide a fully decentralized alternative to Dai, which now depends on a combination of centralized and decentralized alternative collateral. It is expected that this will take place within the next several years. 

Making the shift to complete decentralization

PureDai’s goal was first put forth by Rune Christensen, the CEO and co-founder of MakerDAO. The difference in using PureDai is that it only accepts decentralized assets as collateral, such as Ethereum. This is the major difference between PureDai and Dai, which was backed by different assets, even the USDC. 

PureDai also uses Ethereum mainnet alone for its operation purposes. To avoid the value manipulation of a single organization, PureDai uses oracles that are decentralized for its price feeds. It may not be closely correlated with the US dollar because it will have a peg that is freely floating. 

In response to users who choose decentralization and resilience above stability supported by the fiat, this design attempts to strengthen both of these aspects. To put it, as Christensen has stated, there will be an option for Dai users to upgrade their Dai to PureDai. 

Presenting NewStable: An integrated method

Apart from PureDai, MakerDAO intends to introduce NewStable, another stablecoin. With a typical USD peg and an emphasis on growth, dividends, and resilience, this new stablecoin aims to replace Dai. NewStable will interact with traditional financial systems, which makes it better suited for widespread adoption than PureDai. Additionally, it will adhere to real-world asset (RWA) regulations, establishing it as a link between traditional financial markets and decentralized finance. 

Long-Term Vision

The launch of PureDai and NewStable reflects MakerDAO’s dedication to creativity and adaptability in the ever-changing field of Decentralized Finance (De-Fi). By providing two different stablecoins, MakerDAO wants to meet the various demands of its user base and increase its market share.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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