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collateral-overview.md

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Collateral Overview

This page contains layman’s explanations of the collateral that backs the value of the Dai Stablecoin.

{% hint style="warning" %} While effort has been made to ensure accuracy, be aware that parts of this page may be inaccurate or out of date. {% endhint %}

Ether (ETH)

Ilks: ETH-A, ETH-B, ETH-C

Ether is the native token of the Ethereum blockchain. It is used as the fee currency when making transactions on the Ethereum network. Validators of the ethereum network are required to lock up 32 ETH as a stake, and earn a variable yield for this work.

More info (Ethereum)...

Wrapped Bitcoin (wBTC)

Ilks: WBTC-A, WBTC-B, WBTC-C

Wrapped bitcoin is the most used form of bitcoin in use on the Ethereum network. Through a wBTC partner, wrapped bitcoin can be exchanged directly for bitcoin. Wrapped bitcoin is maintained by a group called the wBTC DAO with over 30 members.

More info (Wrapped Bitcoin)...
More info (Bitcoin)...

Wrapped Lido Staked Ether (wstETH)

Ilks: WSTETH-A, WSTETH-B

Wrapped staked Ether is a fungible derivative of Ether that is exposed to the yield earned by validators on the Ethereum network. It is managed by LidoDAO.

More info (Lido)...
More info (Ethereum)...

U.S. Dollar Coin (Circle)

Ilks: USDC-A, PSM-USDC-A

USDC is a fiat backed U.S. Dollar stablecoin operated by Circle. Each USDC is backed by 1 dollar worth of cash and short-dated U.S treasuries. USDC is redeemable for dollars and the backing is audited monthly.

More info (U.S Dollar Coin)...

PAX Dollar

Ilks: USDP-A, PSM-USDP-A

USDP is a fiat backed U.S. Dollar stablecoin operated by Paxos. Each USDP is backed by 1 dollar worth of cash and cash equivalents. USDP is redeemable for dollars and the backing is audited monthly.

More info (PAX Dollar)...

Gemini USD

Ilks: GUSD-A, PSM-GUSD-A

GUSD is a fiat backed U.S Dollar stablecoin operated by Gemini. Each GUSD is backed by 1 dollar worth of cash or short-term U.S treasury bonds.GUSD is redeemable for dollars and the backing is audited monthly.

More info (Gemini USD)...

Gelato Uniswap V3 DAI/USDC Liquidity Pool Tokens

Ilks: GUNIV3DAIUSDC1-A, GUNIV3DAIUSDC2-A

These tokens represent a combination of DAI and USDC held in UniswapV3 liquidity pools. The tokens accrue fees from DAI-USDC swaps that go through these liquidity pools. The gelato network manages these tokens.

More info (Gelato)...
More info (Uniswap)...

Decentraland (MANA)

Ilks: MANA-A

MANA tokens are used to pay for goods and services within the 3D virtual reality platform Decentraland.

More info (Decentraland)...

Polygon (MATIC)

Ilks: MATIC-A

The MATIC token is used to pay transaction fees and participate in proof-of-stake consensus in the Polygon network. The MATIC tokens Maker uses as collateral have been bridged to Ethereum from the Polygon network.

More info (Polygon)...

renBTC

Ilks: RENBTC-A

RenBTC is a form of bitcoin in use on the Ethereum network. Through the Ren Protocol, renBTC can be exchanged directly for bitcoin. The Ren protocol is maintained by a collection of darknodes that facilitate swaps and custody assets.

More info (Ren Project)...

YFI

Ilks: YFI-A

YFI is the governance token for Yearn Finance, a group of DeFI protocols that aim to optimize users yield on their crypto assets.

More info (Yearn Finance)...

Chainlink (LINK)

Ilks: LINK-A

Chainlink is a decentralized oracle network that brings off-chain information on-chain. The LINK tokens are used as a currency to pay Chainlink node operators.

More info (Chainlink)...

Curve stETH/ETH Liquidity Pool Tokens

Ilks: CRVV1ETHSTETH-A

These tokens represent a combination of stETH and ETH tokens held in a Curve liquidity pool. The tokens accrue fees from seETH-ETH swaps that go through this liquidity pool.

More info (Curve)...
More info (Lido)...
More info (Ethereum)...

AaveV2 Dai

Ilks: DIRECT-AAVEV2-DAI

These tokens are a receipt-like token that represents DAI deposited in the AaveV2 protocol. These tokens accrue value over time from over-collateralized loans made to users of the Aave Protocol.

More info (Aave)...

New Silver DROP

Ilks: RWA002-A

Short term loans (12 months average) financing real estate investors who buy and renovate single-family homes in the U.S. This debt is senior, and potential losses are limited by junior debt from other investors.

More info (Centrifuge)...
More info (New Silver)...

6s Capital

Ilks: RWA001-A

Loans financing the construction of commercial retail properties to be leased to large companies such as O-Reilly’s Auto Parts and Tesla. This debt is senior, and potential losses are limited by junior debt from other investors.

More info (6s Capital)...

FortunaFi DROP

Ilks: RWA005-A

Loans originated by Pipe and Corl against future, contract-secured revenues from SaaS and E-commerce businesses. This debt is senior, and potential losses are limited by junior debt from other investors.

More info (Centrifuge)...
More info (FortunaFi)...

Harbor Trade Credit DROP

Ilks: RWA004-A

Very short-term loans against invoices for any sort of tradable good. Companies use such loans to manage their working capital requirements, such as labor costs or paying for new orders. This debt is senior, and potential losses are limited by junior debt from other investors.

More info (Centrifuge)...
More info (Harbor Trade Credit)...

Consol Freight DROP

Ilks: RWA003-A

Very short-term loans against invoices for any sort of tradable good. Companies use such loans to manage their working capital requirements, such as labor costs or paying for new orders. This debt is senior, and potential losses are limited by junior debt from other investors.

More info (Centrifuge)...
More info (ConsolFreight)...

Huntingdon Valley Bank

Ilks: RWA009-A

A variety of real estate, business, and consumer loans with a range of durations. HVB invests along-side MakerDAO as an equal senior investor. This debt is senior, and potential losses are limited by the value of the loan collateral.

More info (Huntingdon Valley Bank)...

Monetalis Clydesdale

Ilks: RWA007-A

Different blends of short-term bonds from ultra-short (<1 year) to short (1-3 years) maturities. Investments done through BlackRock and Baillie Gifford. Mainly invested in US Treasuries but some exposure to corporate bonds.

Page last reviewed: 2022-10-05
Next review due: 2023-10-05