How to Convert DAI back to SAI to Avoid CDP Liquidation
TLDR: There is another way to do it, using the smart-contract.
If you are trying to exchange / swap back your (MCD) Dai back to Sai (SCD) and are having issues because there isn’t enough SAI in the “swap contract” or the exchange you were using doesnt support the reverse pair anymore, there is a method to still be able to do it.
On November 18th, MakerDAO’s new Multi-Collateral Dai was launched and many of us have upgraded our Sai to the new MCD version but weren’t able to fully convert the Collateral Debt Position (CDP) that’s still in Sai.
With the recent price drop in Ethereum, it’s more important than ever to repay or add collateral to that position to avoid liquidation.
If your amount of ether drops below 150% collateralization radio on the amount of SAI you have created, then your CDP will be forced into liquidation, plus charging you a 13% penelty fee.
Luckily MakerDAO’s original SAI smart contract allows natively to exchange back the amount, and its quite easy to do.
- Move your DAI to an Ethereum wallet (that you control the private keys to), thats also Web3 compatible. We recommend MetaMask on Chrome, Firefox or Brave.
- Go to the Dai to Sai Swap App. It’s an open-source DApp that interacts with the original smart contract.
- Connect your Wallet
- Enter the amount you want to convert back and submit transaction
After confirmation of the transaction, Sai will appear in your wallet.
What is MakerDAO?
MakerDAO is a decentralized autonomous organization based system that uses the MKR token for governance, and DAI which is a stable digital currency and a great alternative to other non-decentralized stable coins.
Published at Fri, 22 Nov 2019 23:23:34 +0000
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