Multi-Collateral Dai has been added to the Compound protocol through the creation of a new cToken contract, cDAI — you can now supply and borrow the latest version of DAI.

Several minor improvements have been made to the cToken contract for this launch, and one significant improvement — upgradability. Over time, the mechanics of cDAI can evolve through the governance layer of Compound.

At launch, cDAI functions exactly like other cTokens — in the coming weeks, cDAI will be upgraded to implement the Dai Savings Rate and interest rates set through the MKR voting process. Following that upgrade, cDAI will be enabled as collateral to borrow other assets.

As a brand new market, interest rates, liquidity, and behavior may be highly unusual at first— please exercise considerable caution when interacting with cDAI.

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Update, December 17th

The planned upgrade to cDAI has been queued in the governance layer of Compound, and will go live in two days:

The interest rate model for cDAI will be replaced with 0xec163986cC9a6593D6AdDcBFf5509430D348030F , which sets the borrowing cost lower bound to be the Dai Savings Rate * 1.05 , and the borrowing cost at 90% utilization to be the Dai Stability Fee + 0.05% — going forward, MakerDAO will effectively control the interest rates of cDAI through the MKR voting process.

, which sets the borrowing cost lower bound to be the , and the borrowing cost at 90% utilization to be the — going forward, MakerDAO will effectively control the interest rates of cDAI through the MKR voting process. The implementation for cDAI will be replaced with 0xbB8bE4772fAA655C255309afc3c5207aA7b896Fd , which will sweep all DAI held by the cDAI contract into the Dai Savings Rate.

, which will sweep all DAI held by the cDAI contract into the Dai Savings Rate. The collateral factor for cDAI will be increased from 0% to 75%.

As a safety mechanism, two transactions to revert cDAI back to it’s original, standard cToken format have been queued in the Timelock; these are intended to expire unused in 14 days, and will only be executed in the event of a near-term emergency or flaw in MakerDAO.