The gradual shutdown of the single-collateral Sai legacy system has been part of Maker's governance plan since Maker's successful launch of multi-collateral Dai on November 18, 2019. At present, nearly 90% of Sai has been successfully migrated to the multi-collateral Dai system. The Maker community decided toOn April 24, 2020, the executive vote will be launched, and MKR holders will vote whether to officially close the single-mortgage Sai system.
Given the importance of the shutdown of the single-collateral Sai legacy system, we have compiled the following full guide for Sai holders and CDP holders.
1) What is single-collateral Sai officially closed?
After the single-mortgage Sai launch is officially closed, CDP holders and Sai holders will enter global liquidation to ensure that all Sai holders and CDP holders can redeem the corresponding mortgage assets at the target price.
2) Why closed single-collateral Sai?
Multi-collateral Dai already includes single-collateral ETH and more asset types. Closing single-collateral Sai has the following benefits:
Multi-collateral Dai uses auctions for liquidation to reduce the risk of bad debts.
The friction of repaying Sai debt with MKR can be removed.
Release more ETH to issue Dai in the multi-collateral system.
Sai can be officially closed<->Channel for Dai upgrade.
Reduce the governance and risk management of single-collateral Sai in the future.
3) I still have Sai, how to upgrade?
Official upgrade channel (migration. makerdao.com) on the Sai -> Dai swap has been closed.
Sai holders can exchange Sai for Dai at market rates through trading platforms such as 1inch.exchange, Paraswap.io, Uniswap.exchange, and Kyberswap.com before the official shutdown is initiated.
After the official shutdown starts, Sai holders can redeem the equivalent ETH collateral at a price of $1 through the redemption panel. The unconverted single-mortgage Sai will become a fixed-ratio ETH exchange certificate at a frozen feed price, which will fluctuate with changes in the ETH price.
4) I still have CDP, how to upgrade?
CDP holders please go through the official upgrade channel as soon as possiblemigrate.makerdao.com (Still partially liquid) Migrate CDPs to Multi-Collateral Dai Vaults.
CDP to Multi-Collateral Dai Vault Migration Flowchart
In addition, CDP holders can also choose the optimal exchange rate on the trading platform to convert Dai to Sai, repay the debt to close the CDP position, and then deposit the retrieved ETH into the multi-collateral Dai system to complete the manual upgrade.
If the CDP holder fails to migrate the CDP before the official close is triggered, they will need to wait 6 hours after the official close is triggered to get their collateral equity back. During this period, the liquidation of outstanding debts on the chain is mainly carried out.
5) I have some PETH, how to exchange it for ETH?
If you are a PETH holder, please switch to WETH or ETH as soon as possible. In order for the system to have sufficient collateral at the time of liquidation, after the official shutdown is triggered, PETH will be issued a buffer, and the PETH/ETH ratio will immediately drop until all outstanding debts are completed and restored.
6) Official closing process of single mortgage Sai
Step 1: An official shutdown is triggered, and Sai holders redeem collateral at a frozen price
Once the official shutdown is triggered, the ETH feed price will be frozen immediately, and CDP holders will no longer be able to mortgage ETH to generate Sai during the liquidation period. Sai holders can instantly redeem ETH collateral for $1. CDP holders can withdraw PETH corresponding to their net value from CDP, but they cannot be exchanged for WETH and ETH at this time.
Step 2: 6-hour waiting period to settle CDPs on outstanding debt
After the official shutdown is triggered, there will be a waiting period of 6 hours for the settlement of CDPs with outstanding debts (the waiting period can be changed through governance voting), and the proportion of all CDP holders getting back their collateral will be calculated.
Step 3: CDP holders redeem collateral
After the 6-hour waiting period ends, all CDP holders can withdraw the ETH net value in the bond warehouse.
7) Will the official closure of Single-Collateral Sai affect Multi-Collateral Dai?
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