What is multi-collateral DAI?

Multi-collateral DAI, also known as Dai 2.0, is an upgraded version of the stablecoin Dai issued by MakerDAO. Unlike the initial version which only allowed ETH as collateral, Multi-collateral DAI enables users to utilize various types of tokens as collateral to generate Dai. This diversity in collateral options aims to increase Dai's stability, expand its issuance, and mitigate risks associated with single-collateral volatility.