Disclaimer: I’m just a community member trying to be helpful, this isn’t an official statement from the Maker Foundation, all this is at your own risk, not financial advice, etc, etc
What’s happening?
MKR governance has decided to shut down Single Collateral DAI .
This is the version of the Dai Stablecoin System that had CDPs and ETH only collateral.
Why is this happening?
There are various liquidation and stability issues within SCD that came dangerously close to causing major breakdowns in SCD, especially during the crash of March 12th.
More detailed explanation here .
MKR holders voted to shut down SCD gracefully to protect SAI and CDP owners.
MKR governance is currently managing two systems simultaneously which is causing additional governance overhead.
I own a CDP, what should I do?
Option 1: Upgrade to Multi Collateral DAI
CDP owners can upgrade to Multi-Collateral DAI using the Maker Migration tool: https://migrate.makerdao.com .This is the only official migration tool.Use any other tool at your own risk.
When upgrading, CDP owners will have to pay off their stability fee.See the ‘How Should I pay my Stability Fee’ section below.It is strongly recommended CDP owners have enough MKR tokens to pay off their accrued stability fee.
MKR tokens are available on DEXes such as Uniswap , Kyberswap or 1inch
Option 2: Wait for Single Collateral Dai Shutdown
When SCD is shutdown, the price of ETH at shutdown will be frozen.
CDP owners will then be able to claim a proportional amount of ETH collateral from the collateral pool.
The Maker Foundation will be providing a UI to facilitate this process.
I own a CDP and I don’t want to upgrade to MCD, what should I do?
CDP owners that don’t want to upgrade to Multi-Collateral DAI can close their CDPs using the official CDP portal: https://cdp.makerdao.com/
It is strongly recommended CDP owners have enough MKR tokens to pay off their accrued stability fee.
MKR tokens are available on DEXes such as Uniswap , Kyberswap or 1inch
How Should I pay my Stability Fee?
The Maker Migration tool allows users to purchase MKR to pay off their Stability Fee and complete the migration.
It facilitates this by sourcing liquidity from market makers on OasisTrade.
Unfortunately at the moment, liquidity is very thin.
The migration tool therefore enforces a 5% slippage limit to protect users.
Because of low liquidity, it is strongly recommended that users source MKR liquidity on DEXes such as Uniswap , Kyberswap or 1inch to pay their fee.Be very careful with slippage.
I own SAI tokens, what should I do?
Option 1: Sell your SAI to DAI/USDC/ETH
You can sell your SAI to another cryptocurrency using DEXes like Uniswap , Kyberswap or 1inch
DAI is currently trading at $1.02 so there’s some risk of slippage
Option 2: Wait for SCD shutdown
When SCD is shutdown, SAI holders will be able to exchange SAI for $1 worth of ETH at the time of shutdown.
This means that if the price of ETH falls after shutdown, SAI holders may get less than $1 worth of ETH at the current price.As a corollary, if the price of ETH rises after shutdown, SAI holders may receive greater than $1 worth of ETH.
The Maker Foundation will be providing a UI to facilitate this process.
I own SAI on Compound
See this official statement from Compound
If you still own Sai on Compound navigate to their app page , connect your wallet and you should see options to withdraw..
