On March 30, 2020, the Maker Foundation Governance Team put a governance poll into the voting system to gather signals whether to initiate the shutdown of the single-collateral Sai system. The poll passed on April 7.

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https://vote.makerdao.com/

Why Shut Down Single-Collateral Sai

On November 18, 2019, Maker officially launched multi-collateral Dai. Unlike single-collateral Sai, which is completely collateralized by ETH, as an upgraded Maker protocol, multi-collateral Dai supports other encrypted assets with appropriate risk parameters as collateral in the Maker system. Currently, the supported multi-collateral assets are ETH, BAT and USDC.

Gradually shutting down single-collateral Sai has been part of Maker's plan, as multi-collateral Dai already includes ETH and more asset types. Since the end of 2019, Maker has started collecting opinion signals from the community to shut down the single-collateral Sai system. On March 12, 2020, the cryptocurrency market fell sharply, and single-collateral Sai faced the risk of under-collateralization, making it difficult for Sai to be anchored to the US dollar. This prompted MakerDAO to consider shutting down single-collateral Sai as soon as possible and fully migrating to the multi-collateral Dai system.

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1. Multi-collateral Dai uses auctions for liquidation to reduce the risk of bad debts.

2. The friction of repaying Sai debt with MKR can be removed.

3. Release more ETH to issue Dai in the multi-collateral system.

4. Sai can be officially closed<->Channel for Dai upgrade.

5. Reduce the governance and risk management of single-collateral Sai in the future.

What Happens When You Close Single-Collateral Sai

If Maker officially closes the single-collateral Sai system on April 24, CDP holders and Sai holders will enter global liquidation.

For CDP holders:

Once the single-mortgage Sai system is closed, the ETH feed price will be frozen immediately, and CDP holders will no longer be able to mortgage ETH to generate Sai. The system will calculate how much collateral each CDP must retain to fill the outstanding Sai in the market according to the frozen feed price. After the Sai holder redeems the ETH collateral, the CDP holder can get back the remaining excess mortgaged ETH.

For Sai holders:

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Sai <->Dai Official Swap Liquidity Closed

In preparation for the complete shutdown of single-collateral Sai, on March 30, 2020, the Maker Foundation Risk Team incorporated a governance poll into the voting system, including adjusting the liquidity cap for Sai to upgrade Dai to zero.

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https://vote.makerdao.com/

CDP Upgrade Channel

In view of the Sai upgrade Dai liquidity limit has been adjusted to zero,Official upgrade channelSai and CDP upgrades are no longer available.

If the CDP holder does not want to enter the global liquidation, it is recommended to useinstaDAppUpgrade to the multi-collateral version, instaDApp currently has sufficient Sai liquidity to help users upgrade.

Note: In the process of using instaDApp, it is necessary to create a smart contract wallet agent to manage CDP and the upgraded multi-collateral vault.

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