Sequential Process for SCD Shutdown

SCD has now been globally settled and Sai owners (including the liquidity providers that purchased SAI) can claim their ETH collateral while CDP holders must wait for the cool down period to end…

Where to claim my ETH for my SAI? Is there a tool? Or via CL? Any hint how to do this?

Pending the current governance vote, it will be possible to claim ETH for Sai from the Migration Portal after 16:00 on May the 12th. This will be visible once the system is ‘caged’ aka shutdown.

https://migrate.makerdao.com/

If you want to exchange Sai for another cryptocurrency before then you could visit other well known decentralised exchanges such as uniswap, kyberswap or 1inch. I would advise not to use any sites claiming to be Maker branded. The above migrate site is the only site Maker is maintaining for this migration.

Thanks for this quick answer. At which time the SAI/ETH rate is set? Is the rate from today? Or the Rate from 12 May?

It will be the rate on the 12th.

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24th April - 10th May: CDP holders migrate to MCD
But actually is no longer possible (https://migrate.makerdao.com/).
So I have to keep waiting and what would happen on 12th May? Paying 9% fee and get my ETH back? Or to claim as a MCD?

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Hi @Derek98, you will need to keep your CDP collateralized and wait until the 12th of May when the system is actually shutdown to claim your ETH.

On shutdown all stability fees are forgiven but again be cautious to maintain collateralization as per usual.

Because the system is now approaching shutdown there is no more migrating to MCD, meaning that users will be able to claim their ETH.

The reason for not being able to use the migration contract as intended was that over the weekend one of the large CDP holders migrated their CDP and drained the migration contract, which means that it is no longer possible to migrate using that mechanism. Therefore we must wait until the 12th which is the date determined by the community.

Hi @Derek, as I mentioned on the other thread here, by having the final settlement price based on ONLY one specific time (16:00 UTC on May 12th) will put our CDP holders into an extremely vulnerable situation if no other options to help them to migrate before the shutdown.

Please be cautious, and don’t make this big mistake! Anyone with some basic finance knowledge can tell the risk of this settlement method. We should try our best to protect the loyal and long term supporters of the MakerDAO project, not to facilitate the “whales” to slaughter the helpless CAGED loyal supporters. :fearful: Thank you for your attention!! @LongForWisdom

The oracle is resistant to attacks. Much of DeFi depends upon it.

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Hi, you misunderstood my point. I was not saying the someone will attack the oracle directly, but by manipulating the market in general during this specific time, so the price source from the oracle still get affected. This is an obvious loophole in term of finance. It has nothing to do with the robustness of the underlying tech of the oracle. Longer the pricing period, harder to manipulate…shorter the pricing period, the easier…

It would take a lot of money to manipulate the ETH price for even 5 minutes. You would probably lose more than the market cap of SAI doing that.

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There were many instances in the Maker history that whales utilized some “weakness” of the system to take advantage for their own financial gains. Please don’t need to underestimate their abilities. If the team can do something to prevent this in advance, why not? I just wanted to explore if you can make the pricing period longer to mitigate some potential risks. This is just my common instinct/alert I have after years of working in the financial market. I hope that I am wrong about this…otherwise, this will drain the Maker reputation further down… Please do reconsider. Peace! @MakerMan. @Derek

Thanks for your explanation. But I don’t know much about what’s happenning.
Could you please tell me what’s my better solution:

  1. Keep waiting until May 12th, and to get my ETH back.
  2. Get my ETH back via CDP right now.

Another question:
On May 12th, will the smart contract sends my ETH derectly to my wallet, or I get it back from CDP manually?
@Derek

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Hi @Derek98 I can’t give you specific advice because it depends on your individual circumstances (level of debt, if you want to wait, etc), however some helpful info:

The only way to get your ETH back today is to source the Sai on the open market to close out your CDP debt (this would automatically allow you to send your ETH back to your wallet as a result).

Now, if you happen to have too much Sai debt that makes it difficult to source and pay off, then the only option is to wait until the 12th.

So, if it isn’t too expensive to source the Sai today then it would be ideal to close your CDP and get your ETH so you don’t have to wait for the cooldown period. But, if you can’t do that, then, as above, you will have to wait for the 12th.

On May the 12th it will not be automatic, you will have to go to the migration portal as described in this forum post

Very nice reply. Thank you very much!
Is MCD safe now?

Yes, absolutely. Furthermore, I’d recommend reading about our Multi-Collateral DAI (MCD) Security to learn more about the audits, bug bounties and formal verification that go into securing the Maker protocol.

Off topic, im having a problem with Exchange Kraken. Someone has send me some Sai to my Dai address ( i though that person will send dai and not sai other wise i would send it to my wallet) but kraken dont accept sai anymore but still under their contract. What would happen to the sai that exchanges has on the shut down? I have a ticket support open but no one has fix it yet. I think kraken is waiting to the shutdown to do something with the Sai they have. Sorry of this is off topic

It remains credited to them. They can redeem it for WETH any time after cage, at the caged rate.

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Will these bites levy a liquidation penalty?

These are all good questions. Either way, all CDP owners will be screwed unless the Maker Team willing to help out by adding more SAI to the Migration Contract before the shutdown.

Hi @chaser these bites do not levy a liquidation penalty. The CDP holder will be returned their ETH minus their debt.

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