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DAI & MakerDAO

Ethereum based stablecoin governed by Maker DAO

Resources​

Purpose​

The DAI stablecoin is fiat-backed and tracks the value of the US dollar on a 1:1 basis. The stablecoin is soft pegged to the US dollar and backed by the collateral locked in Maker Vaults.

Benefits of using the DAI stablecoin:

  • Users can take out loans against unrealized gains without triggering a taxable event.
  • The DAI stablecoin is more stable.
  • Yields of up to 8% via the Dai Savings Rate smart contract.

Endgame​

The MakerDAO "Endgame" to decentralize and reinvent DAI.

The overall goal is to transform MakerDAO into a more decentralized, scalable and sustainable ecosystem centred around DAI, while simplifying core governance and pushing innovation to SubDAOs. This is a multi-year plan that will likely evolve as it progresses.

  1. The Endgame plan is a major update to MakerDAO designed to enhance efficiency, resilience, and participation in the ecosystem.
  2. The plan is divided into multiple phases, with the first phase called "Launch Season" scheduled for the summer of 2024.
  3. Key elements of the Launch Season include:
    • Introduction of new tokens, tentatively named "NewStable" and "NewGovToken"
    • A new brand identity focusing on user-friendly access
    • Launch of a new user website and DeFi app
    • Implementation of the Lockstake Engine (LSE) for staking new tokens and yield farming
  4. The overall goal of Endgame is to grow the DAI supply to more than $100 billion within three years.
  5. Subsequent phases include scaling up the ecosystem, creating an autonomous Layer 1 blockchain called NewChain, and finalizing governance mechanisms.
  6. The plan introduces significant changes to MakerDAO's governance structure, including the transition to Aligned Voter Committees (AVCs) and Aligned Delegates.
  7. The Endgame plan was approved by Maker Governance on October 24, 2022, marking the beginning of this major restructuring.

Value Proposition​

  • Aims to make MakerDAO more resilient, scalable, and sustainable long-term
  • Seeks to align incentives across the ecosystem and reduce governance overhead
  • Goal is to elevate DAI's market share to compete with major centralized stablecoins

Strategy​

  • Introducing SubDAOs to decentralize development and operations
  • Implementing new tokenomics with "NewStable" and "NewGovToken"
  • Launching a dedicated L1 blockchain ("NewChain") to house governance and tokenomics
  • Simplifying core governance through "Scopes" and "Scope Artifacts"
  • Revamping voter incentives and governance participation models

Milestones​

  • Phase 1 "Launch Season" (Summer 2024): Introduce new tokens, brand, and infrastructure
  • Phase 2: Expand SubDAO ecosystem and bridge to other chains
  • Phase 3: Launch NewChain (dedicated L1 blockchain)
  • Phase 4: Achieve "immutable governance" as the final Endgame state

Roles​

Code Analysis​