MakerDAO founder Rune Christensen said that in a few years the project will launch a fully decentralized alternative to the DAI stablecoin under the working name PureDai.
Reconciling the two opposing paths for Decentralized Stablecoins
From the moment Dai started scaling, it has been straddling two worlds.
One world is the culture of pure decentralization as introduced with Bitcoin. The other is the desire to fulfill the original purpose of Dai,…
— Rune (@RuneKek) May 15, 2024
The new asset will be deployed on the Ethereum network, but L2 protocols and cross-chain bridges will be able to transport it to other blockchains.
The “stable coin” mechanism involves:
- exclusively decentralized collateral like ETH or “liquid ether” stETH from Lido;
- free-floating peg, like RAI;
- use of maximally decentralized oracles;
- lack of control.
However, these concepts are fundamentally inconsistent with each other, according to the Stablecoin Trilemma. It states that simultaneously ensuring anchoring, supporting pure decentralization and scaling are unattainable, the founder of MakerDAO emphasized.
The system of two stablecoins is designed to resolve these contradictions: MakerDAO and NewStable, presented earlier.
It is planned that the latter will take over the main functionality of DAI with a strict 1:1 peg to the dollar, collateral, including RWA, and options for working in regulated jurisdictions, such as freezing.
Users will be able to freely convert DAI to NewStable and vice versa, or upgrade coins to PureDai.
Christensen expects that the two new coins will eventually take away all of the project's current features from the project's flagship stablecoin.
Source: Cryptocurrency
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