DAI-HRD Token: Hold Rated DAI – Keydonix
MakerDAO’s successful and highly-anticipated launch of Multi-Collateral DAI (MCD) brings many new and exciting features. Aside from supporting many collateral types and parameters, DAI is now eligible for the “DAI Savings Rate” (DSR), an opt-in, interest-bearing account supported by an official MakerDAO contract, paid for by the system’s stability fees (charged to Vault owners who have borrowed DAI). Holding DAI tokens is not enough to earn this DSR, these tokens must be deposited into a special contract.
Any time you are holding DAI in your wallet without depositing it into this DSR contract, you are giving up free, risk-less™️ returns on your DAI position. However, using DSR is not without its drawbacks, as the DSR account is not tokenized and cannot be easily traded, staked, or used as a standard payment mechanism.
DAI-HRD, a project released by Keydonix, allows you to benefit from the DSR without these drawbacks by wrapping your DAI DSR deposit into an ERC-20/ERC-777 token which deposits DAI into the DSR on your behalf. This token contract, called dai-hrd.eth, is trustless and ownerless, with no counter-party risk. All deposits, withdrawals, and transfers take place on the DAI-HRD smart contract, without any centralized services. DAI-HRD is your best way to earn interest on your DAI, while continuing to function as a standard token.
At Keydonix, we envision an ecosystem where smart contracts operate on DAI-HRD, instead of DAI itself. When you hold and transfer DAI as a stable store of value, you would do so using DAI-HRD. When you deposit your DAI into DeFi components such as Uniswap or 0x, you would use the DAI-HRD token, earning the DAI Savings Rate on these deposits while they are used in a DEX or as collateral.
Tokenizing interest-bearing DAI opens up a world of compounding opportunities.
Published at Tue, 19 Nov 2019 08:44:16 +0000
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