MakerDAO, the decentralized autonomous organization that created the Dai stablecoin, has announced its intention to launch a new stablecoin called PureDai. This step is intended to provide a fully decentralized alternative to Dai, which now relies on a combination of centralized and decentralized alternative collateral. This is expected to happen within the next few years.
Transition to complete decentralization
PureDai’s goals were first laid out by Rune Christensen, CEO and co-founder of MakerDAO. The difference when using PureDai is that it only accepts decentralized assets like Ethereum as collateral. This is the main difference between PureDai and Dai, which are backed by various assets, including USDC.
PureDai also only uses the Ethereum mainnet for operational purposes. To avoid value manipulation by a single entity, PureDai uses decentralized oracles for price feeds. Since it has a freely floating peg, it may not be closely tied to the US dollar.
In response to users choosing decentralization and resilience over the stability supported by fiat currencies, this design attempts to strengthen both of these aspects. That being said, as Christensen said, there will be an option for Dai users to upgrade their Dai to PureDai.
NewStable Presents: How to Integrate
In addition to PureDai, MakerDAO plans to launch another stablecoin, NewStable. With a classic USD peg and a focus on growth, dividends, and resilience, this new stablecoin aims to replace Dai. NewStable is better suited for widespread adoption than PureDai as it interacts with existing financial systems. In addition, it plans to establish itself as a link between traditional financial markets and decentralized finance by complying with real asset (RWA) regulations.
long term vision
The launch of PureDai and NewStable reflects MakerDAO’s commitment to creativity and adaptability in the ever-changing world of decentralized finance (De-Fi). MakerDAO wants to meet the different needs of its user base and increase its market share by offering two different stablecoins.