MakerDAO founder Rune Christensen has introduced two new stablecoins, PureDAI and NewStable, as part of the contentious Endgame plan for the protocol.
“From the moment Dai started scaling, it has been straddling two worlds,” Christensen wrote in a post regarding this announcement on MakerDAO’s forums. DAI, which currently has a $5.4 billion market cap and ranks third overall in the stablecoin industry, is supposed to be replaced by these new tokens.Â
Christensen seeks to balance two decentralized stablecoins approaches: putting utility and scale first with a dollar peg supported by real-world assets (RWA) and pursuing total independence from centralized control.
PureDai will serve as a completely decentralized substitute for its US dollar-pegged stablecoin. PureDai, a stablecoin that will only run on the Ethereum mainnet, is entirely dependent on decentralized oracles and will be backed by ether and Lido staked ether (stETH).
According to Christensen, PureDai’s launch targeted users who favor a fully decentralized vision. In addition, the decentralized stablecoin will feature a free-floating peg, which means it might not be correlated with the dollar.
NewStable is expected to be the primary replacement for DAI, emphasizing growth, yield, and resilience. It will inherit the RWA feature of MakerDAO while staying connected to Maker and bring a new freeze function akin to that of other stablecoins backed by RWA.
Christensen said that users who favor the idea of pure decentralization will also have the option to utilize PureDai, a second, purely decentralized stablecoin, in addition to NewStable, once both are available in the upcoming years.
According to Christensen, there will be a burn mechanism in place and an initial “genesis supply” of 2 billion PureDAI governance tokens that will be distributed in batches of 400 million over five years.
Also Read: MakerDAO Reveals New Stablecoin & Governance Token
