USDx: Replace USDT, starting with a better DAI

in stablecoin •  3 months ago 

In the blockchain world, Bitcoin is undoubtedly the strongest one if you talk about it.

So the second place?

The USDT should be one of the most powerful competitors, or one of them can be removed. Everyone knows that it has a high systemic risk and may collapse, but you can't stop the exchange, the user is using it all the time. .

So the reason why the competition for stable coins is so fierce is obvious: an asset that is ready to be thunderous is accepted by a large number of users, why can't there be new, better, safer, more compliant or more decentralized ways? To subvert Usdt?

So we saw a variety of stable coins such as DAI, USDC, PAX, etc., and Usdt is gradually expanding to EOS, Tron, Algo and other public chains.

Today, the USDx is also a player who is running the USDT. Interestingly, it does not compete directly with other stable currencies, and even a bit embarrassing: every USDx, behind 30% USDC, 30% TUSD, 30% PAX And 10% DAI, you can compare it to a stable currency ETF.

Everyone can be an unofficial Libra

Behind the USDx is a basket of stable coins, but the difference between the USDT and the US dollar is that the team behind the USDx Dforce has designed a protocol, and anyone can generate a USDx by the USDC, TUSD, PAX and DAI with the ratio of the agreement.

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At the same time, you can use this agreement to change the USDx purchased by the OTC channel to other stable currencies in these proportions through this agreement.

So when USDx is lower than the market price, due to the existence of the agreement, both the dForce team and others can buy USDx and then exchange it for other stable coins for arbitrage. When the USDx price is higher than the market price, Arbitrage can be performed by reverse operation through the protocol.

The existence of this arbitrage mechanism will make USDx stable for a long time. The founder of dForce believes that the simpler and more direct arbitrage mechanism of stable currency, the easier it is to maintain stability in a volatile market.

This design idea is very interesting. In theory, it is now possible to launch an unofficial version of Libra. You don't need Facebook's permission at all. All you need to do is package a basket of Libra's money in accordance with its official regulations.

Due to the existence of the arbitrage mechanism, the "Libra" probability will maintain a stable state with the real Libra.

Mindao believes that this is the interesting part of the blockchain world. You can't impose any restrictions on creation. "It may be when the official Libra use has a lot of restrictions, such as you didn't join the Facebook node, but still want to The use of Libra in his own ecology, the value of this "Libra" will be very obvious."

The programmaticity of

currency, the unofficial attribute of the stable currency, the people believe that the greatest value is its programmability, programming Sex means creativity and the creation of new ways of distributing assets.

The road to the Orange Book gives a lot of examples of DeFi on the Ethereum ecology, such as compound, cDai, rDai, etc., which are all brought by currency programmable properties. That's why DAI has so many people supporting it, it's the foundation of DeFi.

Therefore, in this respect, USDx will largely imitate the route of DAI, and enhance the USDx availability by innovating at the protocol level or directly verifying the ecosystem of the Ethereum ecosystem.

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The first one to be released is the Lendf.me loan agreement similar to Compound, which allows users to use USDx for interest. In addition, dForce also launched its own platform currency DF, which is used as a protocol stack in dForce and participates in governance.

An egg is, USDx will immediately have the first DIP (dForce Improvement Proposal) proposal, will improve the core mechanism of USDx, which is also the embodiment of programmability.

However, DAI still has its limitations. For example, it can only be generated by ETH mortgage. As the price of Ethereum is lower, the overall supply of DAI has been in a slow growth state, and the lock rate is also stagnant.

Mindao believes that as a DAI stable currency, behind a highly volatile asset, this phenomenon is almost inevitable. The ease of use of money On the other hand, the ease of use of DAI is not high. I have a deep understanding of this point. When I found that the loan rate of Compound DAI was on average more than 10%, I wanted to change some DAI for arbitrage, but I could not find any public OTC entry in China. Mindao believes that this belongs to the characteristics of the DeFi team under the Ethereum ecology. These developers have great creativity. They usually come up with good ideas, but as to whether this idea is useful to the user, the team The update is slower. So there is a chance for USDx. When dForce is doing USDX specific related operations, the first solution is the OTC scene. The mainstream wallet can buy USDx. As for why you use USDx, dForce will start from the loan side. The stable currency can be made through the dForce agreement. Mindao said that dForce has started to contact some miners. Miners can lend USDx pay and reinvest in the lending market that supports USDx (such as LendfMe). For users with USDx, they can directly put in the Lendf.me contract in the future. Live in life.
But do these solve the problems faced by stable coins other than USDT? Obviously not enough. Back to the beginning of the article, the USDT, due to its huge liquidity and consensus, has already started to use it for cross-border settlement and payment in addition to exchanges.

The stable coins such as PAX, USDC, and DAI are all at the depth of the exchange.

So to stabilize the currency track, it is not difficult to issue a stable currency, but how to convince more people to use or create more usage scenarios.

Of course, another idea is that the stable currency is better than the USDT, and the home court may not be in its original battlefield.

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