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"Dai may also be poised to become the stablecoin of choice for ETH users, for a variety of reasons. An upcoming Coinbase listing, the potential for ICOs denominated in Dai, payroll sent in Dai, and dApps like Augur using Dai, all point to the need for Dai or something similar in the future."

Launched in December 2017 as an ERC-20 token, MakerDAO is pegged 1:1 with the United States dollar, with its peg being maintained via over-collateralization with ether (ETH). In other words, users receive the equivalent of $1 in DAI by depositing more than $1 in ETH, and they can later reclaim their collateral by repaying the DAI they've received plus a "stability fee" in MKR, MakerDAO's other (nonstablecoin) token. By charging users this additional fee, the MakerDAO system theoretically prevents the value of DAI from dropping below $1, since the fee makes it expensive to mint more DAI tokens.

Oxfam International, a U.K.-based non-profit with a global reach, just spent a month testing MakerDAO's stablecoin DAI as a vehicle for helping disaster victims.

Ethereum-based banking alternative platform Monolith, is issuing a new Visa debit card, which allows users to spend Dai stablecoin anywhere in the world at stores that accept Visa payments.

The recent Ether (ETH) price drop showed the reliability and weaknesses of the decentralized stablecoin built by MakerDAO, Dai (DAI), and the decentralized finance (DeFi) ecosystem built on top of it.

Maker will also possibly add KYC to its onboarding process, once again defeating the purpose of decentralized finance to offer low barriers to entry. This extends the troubles with Maker, including the very high participation fee, which is, in essence, its interest rate for lending.

Dai, launched in 2017, seeks to dodge such concerns by giving up control of the ethereum coins its value is tied to, locking them instead in the blockchain contracts run by algorithms. That, supporters say, offers the benefits of stablecoins - instant transactions and steady value - while avoiding governance risks.

"The release of Multi-Collateral Dai (MCD) is only 10 days away and will mark a huge milestone reached for the MakerDAO project. MCD will introduce exciting new features to the Maker Protocol, including the much-anticipated Dai Savings Rate (DSR) and, of course, additional collateral asset types. "

The MakerDAO project launches its upgraded multi-collateral Dai stablecoin today. To the relief of many, it will not include traditional assets as accepted forms of collateral just yet. Cryptocurrency Exchange, Coinbase, has already announced support for the upgraded token from 2nd December.

MakerDAO has launched the multi-collateral version of its DAI stablecoin. But despite the rapid growth of the sector and the diversification of assets involved, DeFi is still influenced by a handful of central players: Namely, Polychain Capital, a16z, 1confirmation, and unknown MKR whales. With governance decisions largely influenced by those with the largest stakes to lose, some crypto veterans are pushing for a closer examination of MakerDAO's marketing directives.

On-chain metrics suggest increasing use of the stable coin despite a decreasing circulating supply.