Dharma and Compound plan to support MCD immediately

Dharma released the new version of their lending platform right as DAI will possibly turn into MCD. On Dharma, users can deposit DAI and passively generate upwards of 7.5% (APR) interest.

On November 18th, MakerDAO, the creators of DAI, will release Multi-Collateral Dai (MCD) given a majority votes for it. DAI will still exist until a global settlement occurs months later.

We asked Brendan Foster, co-founder of Dharma, on twitter whether or not MCD would be supported on Dharma when it is released.

He responded saying that it depends on whether the lending protocol that Dharma uses, called Compound, is able to support it.

“We will of course eventually support MCD. We are built on Compound, so when Dharma can support MCD depends on them. But yes, for sure”

Geoffrey Hayes, founder of Compound chimed in shortly after confirming that they plan to support MCD on or close to its release date.

DAI will still be supported on Compound until “balances and usage are immaterial.” Compound warns DAI holders that after global settlement occurs, the asset will become volatile, and track the value of Ether.

The release of MCD can have many economic impacts such as changing of the stability fee, affecting holders on casual platforms like Coinbase, forcing borrowers out of their CDP and creating trading opportunities as all of these values change in the coming months.