Convert cSai to cDai on Compound.Finance in 3 Easy Steps

in ethereum •  7 days ago  (edited)

Converting cSai for cDai

The Multi-Collateral DAI (MCD) is the newest MakerDao's upgrade available on the market since its release on 18th November 2019. It comes with multiple security upgrades, additional features, and a few name modifications.

SAI is the new name given to former Single-Collateral token, whereas the latest version of Multi-Collateral has been renamed to DAI. Vaults is the new name given to Collateral Debt Positions (CDPs)

The latest Multi-Collateral protocol sustains extra crypto assets, which comprise of BAT and ETH. Once the Maker community vote is concluded, additional tokens will be availed.

DAI token holders can quickly earn interests on their funds through Dai Savings Rate (DSR) at no cost. The interest paid results from the stability charges imposed on borrowers who use Vaults to secure a loan.

MakerDao has no plan to update the former Single-Collateral Protocol, and instead, there are plans to do away with it. Converting your cSai tokens to Multi-Collateral cDai is necessary because the old system is about to be phased out, and the peg to USD will be no more, causing the value of the token to decline because it will cease to function.

Compound.Finance is also removing cSai from it's platform, and currently cSai lending rate is way below that of cDai, which leaves no real purpose to delay the upgrade. While there isn't a way to complete the conversion directly via Compound, it's quite simple and shouldn't take longer than a few minutes, depending on confirmation times of the network.

The only requirement is withdrawing the tokens from Compound back to your Ethereum wallet, such as Metamask, Trustwallet, Coinbase Wallet, or any wallet that's compatible with Web 3.0.

How to Convert cSai to cDai in Compound.Finance in 3 Simple Steps:

  1. In Compound, "withdraw" Sai back to your Wallet.
  2. Go to the Sai to Dai Migration DApp and Connect your Wallet.
  3. Enter Amount to Convert & Submit Transaction.

Your Dai will appear after the transaction is confirmed in your wallet, and now you can go back and lend out your funds at a higher rate.

What is Compound? - Im New!

Compound.Finance
Compound.Finance is a transparent, money market protocol that runs on the open-source blockchain platform known as, Ethereum. An algorithm first determines interest rates, which fluctuate based on the supply and demand of the market. Compound users are then able to supply assets to a liquidity pool and immediately begin earning interest that is continuously-compounded.

Assets are represented by cTokens, which can be borrowed by users up to 50-75% of their cTokens value. If debts become undercollateralized, anyone can liquidate at a 5% discounted rate. 10% of interest paid is kept by the protocol for reserves, however there are no fees and funds can be added or removed at anytime. Compound can be accessed via several different interfaces including Compound Interface, Zerion, and Coinbase Wallet.

Tokens on Compound
The protocol also supports the following tokens: Basic Attention Token (BAT), MakerDAO Dai (DAI), Ethereum Coin (ETH), Augur's Reputation (REP), USD Coin (USDC), Wrapped Bitcoin (WBTC), and 0x (ZRX).

About MakerDao & Dai

MakerDAO is a decentralized autonomous organization platform built on the Ethereum blockchain. The maker coin (MKR) acts as a governance token that is responsible for DAI token and it's stability, the crypto-backed, decentralized stablecoin. With the new Multi-Collateral release, DAI holders can now earn interest on your funds using the Dai Savings Rate (DSR), natively from the platform.

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