Is there going to be v3 DAI in 2021?

The things in DeFi are developing fast - almost every popular project (i.e. Uniswap, Aave, Loopring, USDC…) is working on a new version as soon as the current version is in production. DAI released v2 (SAI=v1) last year and AFAIK nobody works on v3 version yet. Ther are some improvements in the making (the governance site, liquidations…) but they are just fixes for the current version with no major new features.

Is there any plan for new DAI contracts written from scratch or at least for a major redesign and enhancement of the current contracts? I’m afraid that if DAI doesn’t evolve and catches up with new developments (incentives, yield farming, L2 voting and transfers…) that it will fall behind the competition and slowly die.

We must not be fooled by a rather large DAI MCap growth - DAI is far from secure from competition as we saw projects rising from nowhere to hundeds of millions in MCap/liquidity in weeks.

What are your thoughts about that problem? Do you think v3 is unnecessary in 2020/2021 and that DAI will thrive on first mover advantage and the robustness of the current design? Is there a funding available for v3 development (the Foundation…)? Is there a will from current Maker develeopers to work on a new version?

MakerDAO will continue to iterate and evolve as time goes on. The community here is so strong and governance is run by institutional whales + the community so as it becomes necessary to look into V3 ideas I am certain they will take shape. For now, I continue to be excited about what V2 has been able to offer. Dai market cap growing from $100M to $600M has been a major step forward.

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What would v3 be? going from Sai to MCDai was a categorical change with major fundamental changes to how the smart contracts worked. The plan is to continue to onboard other collateral types with time, but I don’t know what a change of similar magnitude would look like.

It is likely from here that we will see many smaller changes and it will be harder to define a v2 vs v3 since the change will happen continuously.

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MCDai was specifically built to be modular. This means it’s possible to swap out parts of the system with new and better parts.

This is the plan for the liquidations 2.0 system and the v2 governance contract.

So it’s more like it’ll be incrementally upgraded as we identify improvements that we’d like to make.

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Haven’t we identified some problems that are not addressed with the current system nor with the new replacements:

  • high onchain fees (USDC is addressing it)
  • no way to control the peg in a way that was imagined when the system was designed (now we rely on “hacks” / misusing the parameters)

?

Sure, but currently the dev resource is going towards the two things I listed. In the future we’ll probably want upgrades that address your points.

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If you mean a v3 where everyone has to redeem DAIv2 for collateral in Maker_v2 to deposit in Maker_v3 for DAIv3 lets hope not.

I personally would like to see Maker not have to shutdown MCD or take a different approach to emergency situations that eliminates the Emergency Shutdown nuclear option because that would indeed be a nuclear bomb on the markets.

As to what Maker looks like in 2021. My concern is that Maker will not be able to evolve faster than the rest of the DeFI space and is left behind with nothing in v2 and looking to create a v3 to compete with the rest of the markets.

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