Talking about complete decentralization again, can MakerDAO, which has issued a new stablecoin, make a comeback?

According to the latest news, Rune Christensen, founder of MakerDAO, said in a post on the X platform that as a supplement to NewStable, Maker is expected to launch another fully decentralized stablecoin, PureDai, to meet the needs of users who prefer a purely decentralized vision. PureDai will be deployed only on the Ethereum mainnet, using decentralized oracles, without the need for governance or other budgets, and will require no further upgrades or changes from the moment of release, and will be completely independent of Maker.

Christensen further introduced the design and implementation details of PureDai. PureDai features include floating target prices and highly decentralized collateral (such as ETH and stETH). Users holding DAI will be able to upgrade their DAI to NewStable or PureDai. The conversion of NewStable is expected to be launched in the short term, while PureDai is expected to be released in a few years.

PureDai, a new decentralized stablecoin, aims to return to MakerDAO’s original decentralized vision, fully leveraging the strengths of the Ethereum ecosystem to ensure its leading position in the decentralized space. Next, we will explore in detail the technical features of PureDai and its potential impact on the decentralized financial ecosystem.

How will the dual stablecoin strategy of MarkerDAO—Endgame plan affect the market? **

MakerDAO is one of the pioneers in the field of decentralized finance (DeFi), and the stablecoin Dai it created occupies an important position in the cryptocurrency market. The success of Dai lies in its unique over-collateralization mechanism, which enables it to maintain a relatively stable value. As the DeFi ecosystem develops, MakerDAO continues to innovate and seek better solutions to meet market needs.

In August 2022, the MakerDAO community adopted the Endgame plan, which aims to increase MakerDAO’s growth, resilience, and participation by launching new tokens NewStable and NewGovToken. The core goal of the Endgame plan is to expand the supply of Dai to 100 billion and beyond while maintaining its decentralization and transparency. Through the SubDAO ecosystem, the Endgame plan provides users with a variety of options, allowing users with different needs to participate in it and form a virtuous circle.

NewStable is a key component of the Endgame plan, as an upgraded version of Dai, focusing on mass adoption and support for real-world assets (RWA). NewStable still maintains the dollar peg, but enhances its stability and returns by introducing RWA as a reserve asset. Users can choose to upgrade their Dai to NewStable to enjoy new features and higher returns.

As a decentralized stablecoin launched by MakerDAO, what are the characteristics of PureDai?

PureDai is another fully decentralized stablecoin launched by MakerDAO, designed to meet the needs of users who prefer a purely decentralized vision. Unlike NewStable, PureDai will not rely on any centralized asset support, but will maintain its stability through an extremely decentralized mechanism. PureDai’s design features include:

1. Floating Target Price: PureDai will adopt a floating target price mechanism, which means that its value will float freely according to market demand and supply, rather than being fixed to a specific currency.

2. Decentralized high-quality collateral: Only highly decentralized and well-verified collateral such as ETH and stETH is accepted.

3. Decentralized Oracle: Rely on price data provided by decentralized oracles to ensure the transparency and resilience of the system.

4. Minimal governance: No budget or contributors, no further upgrades or changes required from the start of release.

PureDai’s core advantages include:

1. **Floating target price mechanism: **Floating target price is one of the core features of PureDai. Since it is impossible to guarantee a long-term peg to the US dollar, PureDai must implement a free-floating anchoring mechanism. By introducing a negative target rate, PureDai can lower prices in high demand situations, thereby maintaining a form of price stability. This mechanism is similar to other decentralized-first stablecoins such as RAI and HAI.

2. **Decentralized high-quality collateral: **PureDai only accepts highly decentralized and well-verified collateral, currently mainly ETH and stETH. ETH is considered the ultimate decentralized collateral, while stETH improves economic efficiency through Lido’s decentralized infrastructure. PureDai’s minimal governance will be able to delist stETH when necessary, and may list other liquid collateral ETH tokens that meet high standards.

3. Operation of decentralized oracles: PureDai relies on price data provided by decentralized oracles to ensure the transparency and resilience of the system. To achieve this goal, PureDai will maintain liquidity in three AMM pools: ETH/PureDai, stETH/PureDai, and NewStable/PureDai. These AMM pools will be used to generate time-weighted oracle prices to ensure accurate collateral prices in system liquidation calculations.

4. Governance Token Economics: PureDai will have its own governance token with an initial supply of 2 billion. These governance tokens will be distributed to NewStable mining users over 5 years, and will be permanently distributed to PureDai vault users to subsidize the generation of PureDai. PureDai’s surplus will be used to accumulate governance tokens, which will be achieved through a smart destruction engine. In addition, the governance token will also serve as a backstop when PureDai has bad debts.

5. **Permanent distribution to the PureDai Treasury: **In order to support the growth and demand of PureDai, PureDai Treasury users will receive permanent distribution of governance tokens. This mechanism allows users to obtain governance tokens while paying higher stability fees, thereby incentivizing more users to participate in the generation and use of PureDai.

6. Minimal governance and immutability: A distinctive feature of PureDai is its minimal governance requirements and immutability. From launch, PureDai will not require further upgrades or changes, meaning the token will be completely independent of Maker and free from any centralized control. PureDai’s decentralized oracles and minimal governance ensure its leadership in the decentralized field.

PureDai will face market challenges, and its subsequent trends are worth paying attention to

With MakerDAO announcing the launch of PureDai, this new decentralized stablecoin project faces huge opportunities and challenges. As a product that returns to its original intention, PureDai aims to provide users with true decentralized financial tools through its floating target price, decentralized high-quality collateral, and minimal governance mechanism. This undoubtedly injects new vitality into the decentralized finance (DeFi) ecosystem.

PureDai is designed to flexibly adjust between market demand and supply, maintaining price stability and system resilience. At the same time, PureDai’s immutability and complete independence ensure that it does not require further upgrades or changes after release, which greatly enhances user confidence and security. Over time, PureDai will further consolidate its market position through its unique governance token economics and incentive mechanism for permanent issuance to vault users.

However, PureDai also faces multiple challenges in technology and the market. First, how to effectively manage the floating target price to cope with market fluctuations is an issue that requires continuous exploration and optimization. Second, although PureDai’s decentralized collateral design is very attractive, in actual operation, how to ensure the liquidity and value stability of the collateral will be a major test of the system’s resilience.

In addition, the launch of PureDai needs to gain broad support and recognition within and outside the MakerDAO community. Community feedback and participation will be one of the key factors for the success of PureDai. MakerDAO needs to ensure that PureDai can meet the needs of users and play an important role in the decentralized financial ecosystem through continuous communication and improvement.

In summary, PureDai is standing at a critical juncture full of potential and challenges. Through technological innovation and market adaptability, PureDai is expected to achieve remarkable achievements in the field of decentralized finance. However, how to balance technological innovation with market demand and maintain the stability and security of the system will be the key to the future development of PureDai. For investors and users, this is a moment worthy of attention and evaluation, and also a test of the long-term commitment and confidence of the PureDai project.