Multi-Collateral DAI (MCD) is a stablecoin created by the Maker Protocol. Unlike its predecessor, Single-Collateral DAI, which was backed only by Ether (ETH), MCD can be backed by various assets. This variety enhances stability and usability.Users can deposit different cryptocurrencies, such as BAT (Basic Attention Token) or USDC (a stablecoin), into the Maker Vault. In return, they can generate DAI by borrowing against the value of their collateral. This process ensures that DAI retains its peg to the U.S. dollar.MCD also introduced features like the Dai Savings Rate (DSR), allowing users to earn interest on their DAI holdings. The more assets accepted as collateral, the more decentralized and resilient the system becomes. Additionally, users must be mindful of collateralization ratios to avoid liquidation, which can happen if the value of their collateral drops significantly. Overall, Multi-Collateral DAI strengthens the Maker ecosystem by providing flexibility and resilience in managing digital assets.