Tuesday saw two burgeoning decentralized-centric cryptoassets in MakerDAO (MKR) and OmiseGO (OMG) publish two announcements; each designed to enhance their respective upcoming milestones that are geared toward enabling decentralization for trustless transactions. The teams behind the two top-50 cryptoassets (by market cap) – MKR and OMG – had already been collaborating for some time and are both members of the Ethereum Community Fund (ECF).
Announcement #1 – Maker’s Dai Stablecoin on OMG DEX
Firstly, Maker’s decentralized stablecoin, Dai, is set to become available on the OMG network. This currency is ideal for a stable store of value, as its infrastructure is decentralized, meaning it is without a central operator. If such a central entity existed, they’d possess the undesirable ability to alter the technological infrastructure underpinning Dai.
According to Maker’s announcement, they believe that “a stable currency will play a critical role in this emerging financial system” being developed by OmiseGO. The reason being that with the decentralized OMG network soon expected to host “self-sovereign financial services across geographies, asset classes, and applications,” Dai can act as a “completely decentralized option for stability and price predictability.”
Announcement #2 – Oh My, OMG To Collateralize Dai
As for what Maker gained from Tuesday’s reciprocal partnership announcement, OmiseGO agreed to let OMG be made available as a collateral option for issuing Dai. Of course, issuing the decentralized stablecoin is only possible if each unit is backed by some valuable asset that happens to be held in Maker’s secure smart contract platform.
For now, all that can be used to create Dai is Ether (ETH). However, as part of Maker’s next upgrade, they will introduce multi-collateral Dai, meaning that if someone wishes to create Dai, they will no longer be forced to send Ether to a Collateralized Debt Position (CDP) on the Maker platform.
Instead, those wanting to create Dai – ‘CDP creators’ – will soon be able to choose which valuable asset to back their Dai with, and as OmiseGO today revealed, “the OMG token will be among the first options offered.”
Stablecoin Market Heating Up
The welcoming news for MakerDAO comes as SEC documents recently confirmed that nascent stablecoin competitor, Basecoin (see: whitepaper), successfully raised $125 million via a Simple Agreement for Future Tokens (SAFT) sale.
The funds raised by Intangible Labs – the company behind Basecoin and its stablecoin project – came courtesy of 225 investors from March 22 through April 3.
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