Yesterday we initiated a transaction that updates the iDAI logic contract. It has passed through our timelock, and now DAI in Fulcrum lending pools that hasn’t been loaned out is used to mint Chai. It’s means that if you lend DAI on Fulcrum you automatically earn Maker DSR (4% APR at the moment of writing) AND Fulcrum’s own APR.

What is CHAI?

Vitalik likes the idea of CHAI wrapper

Chai is a simple ERC20 wrapper for the MakerDAO Dai Savings Rate (DSR) and was created by dAppHub. This means that as long as there are reserves sitting idle, supply rates will receive a boost from the DSR. Supply rates can be queried on iDAI as before and already include the DSR in returned values. The addition of the DSR affects the supply rate according to the following:

Current_Supply_Rate = iDAI_Native_Supply_Rate + DSR * (1 - current_utilization)

We are proud to be the first platform to offer the DSR for our DAI lenders. With this new upgrade, along with the usual DAI support, holders of Chai will be able to deposit directly into Fulcrum’s DAI lending pools without unwrapping, using the new function mintWithChai. Users and developers can also withdraw directly into Chai using the new function burnToChai. We have added the function chaiPrice to view the redemption value of a burn in Chai terms (daiAmount = chaiAmount * chaiPrice). Lastly, for convenience, you can always query dsr on iDAI to view the latest MakerDAO DSR value.

About the author
Tom Bean
Founder and CEO @ bZx.