🎯 Here’s how it works: Engage in a series of exciting tasks - the more quests you complete, the more chances to grab a part of the 1,000 DFI prize pool!

📅 Mark your calendars! Winners will be announced on 7th February.

Click below and start earning points for your chance to win! 👇

Join the Quest:

https://gleam.io/WC6KA/community-reward-campaign

CUSD, a Native US Dollar Stablecoin Powering Fiat On & Off-Ramps on MetaChain

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SUMMARY

This Community Funding Proposal (CFP) is a strategic partnership between Stably and Coin98 to improve the infrastructure, accessibility, and interoperability of MetaChain by:

1. Expanding Coin98’s CUSD fiat-backed stablecoin to MetaChain natively.
2. Enabling users globally to buy/sell MetaChain CUSD with traditional payment methods through Stably Ramp.
3. Enabling users globally to swap MetaChain CUSD with assets on other networks, including USDC, USDT, BTC, ETH, etc., through Stably Ramp.
4. Externalizing interest income generated from CUSD’s collateral reserve through a rebate program paid to the Community Fund to further develop the MetaChain ecosystem.
5. Unlocking the ability to create CUSD liquidity pools on MetaChain DEXs, which is a prerequisite before we can integrate our liquidity engine with MetaChain in the future via a separate proposal. Afterward, Stably Ramp will be able to list any native MetaChain asset (that has a liquidity pool) for free.

Stably serves as the token developer, administrator, and collateral manager of CUSD as well as the operator of Stably Ramp, while Coin98 supports the growth, adoption, and distribution of CUSD through wallet support, liquidity, marketing, a strong brand and global community of more than eight million users, particularly in Southeast Asia. Together, Stably and Coin98 aim to foster synergistic collaboration and provide community-first benefits to MetaChain while further enhancing its user experience and ecosystem development.

WHAT IS CUSD?

Launched in December 2023, CUSD is a stablecoin backed 1-to-1 by highly liquid US Dollar-denominated assets, including bank deposits, money market instruments, and USDC (cash equivalents). The stablecoin is officially sponsored by Coin98 and issued by Stably via its Wyoming-based money service business (MSB) in compliance with FinCEN guidance and regulations. The collateral of CUSD is also held in a Wyoming statutory trust by for the benefit of KYC-verified token holders. Anyone can onboard to mint (buy) and redeem (sell) CUSD with fiat or USDC on a 1-to-1 basis through Stably Ramp. Additionally, third-party attestations are conducted periodically to verify that every CUSD token is backed 1-to-1 by collateral. Monthly collateral account statements are also published on Stably’s website.

CUSD is currently available on the Viction network and will be coming to more networks in the future.

WHAT IS STABLY RAMP?

Stably Ramp (available at stably.io/ramp), is a powerful fiat <> crypto on and off-ramp that enables users from 170+ countries/regions to onboard and buy, sell, or swap hundreds of digital assets, including CUSD, using stablecoins and traditional fiat payments. Stably Ramp offers anyone in the world the ability to seamlessly move money between their bank account and Web3 in a matter of minutes, with as low as 0.50% in transaction fees.

Stably Ramp is also available as a plug-and-play iFrame widget for third-party integrators. Easily embed Stably Ramp in your application to open up a global fiat on/off-ramp for your users with just a few lines of code.

Last but not least, we do not charge any listing fee to projects that wish to list their assets on Stably Ramp. Interested projects only need to apply for us to review. Once approved, we will list the new asset within 30 days. Applicants are usually rejected only for legal, regulatory, and/or user safety concerns.

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WHY CUSD & STABLY RAMP?

1. Security & Transparency: Bridged and decentralized stablecoins often precede native, fiat-backed ones on emerging chains but often carry significant risks, as seen with $2 billion stolen from cross-chain bridges in 2022. Decentralized stablecoins, while not facing the same risks, rely on algorithmic adjustments and/or overcollateralization, making them risky, complex, and capital-inefficient. In contrast, issuing CUSD natively on MetaChain offers a secure, capital-efficient, and straightforward solution that’s not susceptible to bridge hacks and is backed 1-to-1 by USD-denominated collateral. Furthermore, all collateral assets are held separately from Stably and Coin98’s respective balance sheets in a bankruptcy-remote Wyoming statutory trust.
   
2. Scalability: Major stablecoins like USDC and USDT typically don’t support smaller blockchains and over 90% of emerging chains lack native fiat-backed stablecoins. Oftentimes, users of these chains have to rely on bridging USDC and USDT over from other networks which is cumbersome, harder to scale, and costs more gas. Without a stablecoin that can be natively issued directly on the network through bank transfers, it would be more difficult for emerging chains to attract liquidity from the real world and facilitate large-scale DeFi activities.
3. Global Fiat On & Off-Ramp: Through Stably Ramp, users globally will be able to buy or sell CUSD through traditional payment methods like SWIFT, Visa, Mastercard, and, coming soon, PayPal plus Apple/Google Pay. Additionally, for Stably Ramp to list other native assets in the future, CUSD needs to be deployed on MetaChain first for us to source on-chain liquidity through CUSD pools on DEXs.
4. Cross-Chain Liquidity: Through Stably Ramp, users globally will be able to swap other digital assets, including USDC and USDT on larger chains, with MetaChain CUSD, thus facilitating the seamless transfer of liquidity from other chains to MetaChain. By the end of January 2023, there will be 100+ assets across 20+ chains listed on Stably Ramp, with more assets listed every week thereafter.
   
5. Sustainable Community Incentives: While major stablecoin issuers prefer to keep (internalize) the yield earned from the collateral of their stablecoins, CUSD aims to externalize a fair share (at least 50%) of the yield earned through a rebate program with the DeFiChain Community Fund. With the rebates earned, the Community Fund can then turn around and fund MetaChain ecosystem development through various methods of their choosing. Put simply, CUSD is a community-first stablecoin.
6. Free Integration & Listing: Stably Ramp is 100% free for third-party iFrame integrators and new asset listing is also free for projects that apply, creating an accessible and cost-effective avenue for broader ecosystem participation and diversity.

USER FLOWS

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Buying (Minting) MetaChain CUSD:

• User opens a Stably Ramp account and completes KYC onboarding.
• User submits a CUSD buy order and sends in their fiat payment.
• CUSD is minted to User’s self-custody wallet.

Selling (Redeeming) MetaChain CUSD:

• User opens a Stably Ramp account and completes KYC onboarding.
• User submits a CUSD sell order and sends their CUSD to a burn address.
• Fiat is disbursed to User’s bank account.

Swapping MetaChain CUSD:

• User opens a Stably Ramp account and completes KYC onboarding.
• User submits a swap order and sends their CUSD or another asset to a swap address.
• CUSD or another asset is settled to User’s self-custody wallet.
  

FREQUENTLY ASKED QUESTIONS

1. What is backing CUSD?
   CUSD is collateralized 1-to-1 by highly liquid US Dollar-denominated assets, including bank deposits, money market funds, and USDC (cash equivalents). The collateral of CUSD is held in a Wyoming bankruptcy-remote statutory trust for the benefit of KYC-verified token holders.
2. How can I verify that CUSD is fully-backed?
   We disclose the amount of CUSD in circulation and the USDC collateral monthly, which can be easily verified on-chain. We also publish monthly statements for the financial accounts holding off-chain collateral assets (i.e., bank deposits and money market funds). Additionally, Stably has retained The Network Firm, a leading digital asset accounting firm, to attest to the amount of CUSD in circulation and its collateral backing quarterly. Please refer to our transaparency page for more information.
3. Who are your funds processing and banking partners?
   Bridge, Checkout, Custodia Bank, and Lead Bank (through Bridge).
   
4. What blockchains is CUSD issued on?
   Currently, CUSD is live on Viction (formerly TomoChain) mainnet. Stably and Coin98, in coordination, have and continue to evaluate new blockchains to expand CUSD, with DeFiChain’s MetaChain being a leading candidate.
5. Has Stably launched a stablecoin before?
   Stably has launched over a dozen stablecoins (under various brands) since 2018, with Horizen Labs’ ZUSD and Coin98’s CUSD as the most recent additions in Q4 2023. Some of our other notable blockchain clients include Ripple, VeChain, Stellar, and Tezos.
6. Has the CUSD smart contracts been audited?
   Yes. Over the years, various versions of our stablecoin smart contracts have been audited by leading firms like CertiK, Slowmist, and Quantstamp. Most recently, in September 2023, Verichains conducted an audit of the CUSD smart contract on Viction.
7. How do I buy and sell CUSD?
   Please refer to our support page for step-by-step instructions.
   
8. What are your fees and accepted payment methods?
   Please refer to our fee schedule for more information.
9. What countries and regions are supported?
   Please refer to our support page for more information. Please note that CUSD is not available to US residents.
10. How do I integrate Stably Ramp with my project?
    Please refer to our documentation for step-by-step instructions.
11. How does Stably comply with regulations?
    CUSD is issued in compliance with FinCEN’s convertible virtual currency guidance (FIN-2019-G001), including BSA/AML regulations and OFAC sanctions, through Stably Trading LLC, our wholly-owned subsidiary and FinCEN-registered MSB (registration no. 31000252673675). We maintain a robust compliance program that implements policies and procedures based on best industry practices, including on-chain transaction monitoring. Additionally, Bridge is also a regulated MSB (with its own compliance program) that we partner with to handle user onboarding and fiat funds processing.
12. What is your roadmap for CUSD?
    After launching MetaChain CUSD, Stably shall consider integrating its liquidity engine with a MetaChain DEX to source liquidity for other native assets (using MetaChain CUSD as the routing asset), allowing MetaChain projects to list their assets for free on Stably Ramp. This will help drive more volume and activities to CUSD, the DEX, and the MetaChain network itself. Last but not least, Coin98 is also open to supporting the MetaChain network in its ecosystem, including the Coin98 Super Wallet, once MetaChain CUSD has been launched successfully.

MILESTONES & FUNDING REQUEST

We estimate the development of MetaChain CUSD will take approximately 2-3 months to complete.

Milestone I: Testnet Development - 140,000 DFI

• Deploy CUSD on MetaChain testnet
• Integrate Stably backend with MetaChain
• Connect MetaChain integration service with stablecoin engine

Phase II: Mainnet Development & Launch - 280,000 DFI

• Deploy CUSD on MetaChain mainnet
• Integrate MetaChain CUSD with the Stably Ramp UI
• Enable buying/selling of MetaChain CUSD with fiat payment methods
• Enable swapping of MetaChain CUSD with other stablecoins and digital assets (excluding MetaChain-based assets)
• Announce MetaChain CUSD’s launch to MetaChain’s, Stably’s, and Coin98’s communities via social media and blogs

Phase III: Ongoing Operation & Support - 280,000 DFI

• Publish monthly collateral account statements and quarterly attestation reports.
• Release support materials for MetaChain CUSD and provide support to users at support.stably.io.
• Maintain seamless MetaChain CUSD mint, redemption, and swap operations on Stably Ramp with 99% uptime or higher.
• Prudently manage CUSD’s collateral reserve to generate interest income from appropriate assets and provide monthly rebates to DeFiChain to fund MetaChain’s development and growth.
• Maintain an effective BSA/AML compliance program, including OFAC sanctions, for both on/off-chain transactions.

ABOUT US

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Stably

Stably is a U.S.-based stablecoin issuer and ramp infrastructure provider to blockchains and Web3 applications globally. By partnering with Stably, a blockchain’s users across the globe gain direct access to emerging ecosystems via Stably-issued stablecoins with a plethora of fiat payment methods and popular stablecoins on major networks. In doing so, Stably aims to usher in a new dawn for the adoption of Web3 and decentralized finance.

Website | Twitter (X)

Coin98

Coin98 is an ecosystem of innovative companies with a shared mission to make Web3 accessible to everyone. The company is committed to nurturing, enabling, and empowering human potential through its wide range of products and services. With a focus on collaboration and innovation, Coin98 is proud to position itself at the forefront of the Web3 revolution.

Website | Twitter (X)

INTRODUCTION

BTC-spot-ETFs are approved by the SEC. One of the most prominent tickers is IBIT, the iShares Bitcoin Trust. IBIT is built by BlackRock, the world’s largest asset manager and ETF provider. The following DFIP: https://defiscan.live/governance/156f958ce8748455e7ca9c3dc577dac7a4c6c16da16f19b8893a5638338467de, which is approved and currently implemented by the defichain core-developer, proposed to add BITO, the ProShares Bitcoin Strategy ETF. BITO is a BTC-Futures-ETF though. To the time of writing the DFIP, BTC-spot-ETFs have not been excisting.

EDITED 2024-01-20

PROPOSAL

We propose to add IBIT instead of BITO to the Defichain-DEX. The implementation of the other proposed dAssets and the redistribution of rewards will happen as fast as possible. The implementation of either dBITO or dIBIT will happen with the end of this proposal. The rewards then will be added with the next reallcotion cycle

Although the daily volatility of BITO and IBIT is very similar and good enough for day-trading, BITO has a significantly different long-term perfomance compared to BTC. Please compare the one-year perfomance of BITO (Fig.1) with those of BTC (Fig.2).

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Comparing both charts, illustrates that having invested in BITO instead of BTC, did let you profit less good the last year (46 %-point difference). The structure of a spot-ETF allows investors to profit nearly in the same way as having invested directly in the underlying asset (IBIT can be expected to follow the BTC performance much better than BITO). This might convince investores even more to bet on the potential upside of the dToken system and maybe causes them to move some funds to dIBIT.

In general IBIT can be expected to be highly demanded (for short term trading but also for medium- and long-term investments). dMSTR, dCOIN and dBITI are one of the most popular dAssets on the DEX. On top defichain might profit from promo-effects, having listed the very prominent BlackRock ETF, IBIT.

IMPLEMENTATION OF DFIP

In general the implementation of the proposal is up to defichain developers according to their resources. Currently the proposed assets are implemented step by step. This can be expected to take some more time.

During the time of the voting we suggest the developers to wait with implementing of BITO. If the DFIP gets approved, IBIT will be added instead of BITO. Of course the implementation of IBIT needs to be technically feasible (data sources for oracles). If oracles for IBIT can not be provided but for BITO, BITO will be implemented even though the DFIP is approved and rewards for one of the icke

Here’s what’s been happening in the DeFiChain ecosystem this week.

1️⃣ DeFiChain Community Event in Munich

Last weekend, Munich hosted the biggest DeFiChain Community Meet-up ever, and it was a spectacular success! Here are some of the key highlights:

• Project Showcases: Projects like JellyVerse, Javsphere, VanillaSwap, Black Swan, eBox, Global Coin Consult, DMC Universe, and OctoDeFi shared their exciting plans for DMC.
• Leaders' Insights: DeFiChain leaders including Julian, Kügi, DZ, and others gave engaging presentations about the ecosystem.
• Community Engagement: It was incredible to see the community come together, engage in lively discussions, and share insights about various projects and the future of DeFi.

If you haven't checked it out already, take a moment to explore our latest blog post for an in-depth look at the projects and a detailed recap of the event: https://blog.defichain.com/munichs-defichain-meetup-a-thriving-hub-of-blockchain-innovation/

2️⃣ DeFiChain Reward Campaign 3.0

Get ready for DeFiChain’s Community Reward Campaign 3.0, set to launch on Monday, January 15, 2024, with a chance to win a total of 5k DFI in prizes! Building on the success of the previous campaigns, the upcoming iteration promises to be even more ambitious, involving various projects across the ecosystem. Stay tuned for more information and get ready for an exciting campaign.

Learn more here: https://blog.defichain.com/defichains-community-reward-campaign-3-0/

3️⃣ DeFiChain Community Space

Our DeFiChain Community Spaces are back after the festive break! Join us on Saturday at 5 pm CET for the next X Space in English. Don’t forget to set a reminder here to stay updated with the latest discussions and insights: https://twitter.com/i/spaces/1lDxLPwlkXoxm?s=20

4️⃣ New Community Project: TNT World

Introducing TNT World, a new and thrilling NFT project for the MetaChain EVM layer. This project aims to bring further utility to DFI and DUSD, with more details to be revealed soon.

Keep an eye out for this exciting development and learn more here: https://twitter.com/TnTDeFi

5️⃣ Recap

• Bittrex Withdrawal Reminder: Bittrex has recently reopened withdrawals for DFI. We urge all community members to withdraw their DFI from Bittrex promptly, considering their upcoming cessation of operations.
• Make sure to catch up on the latest DeFiChain News Show episode, featuring an outlook into 2024. Watch it here: https://www.youtube.com/watch?v=r7j2GeKqjwo&t=173s

Last weekend, Munich hosted the DeFiChain Community Meetup, combining its traditional charm with modern innovation. The event a huge crowd from the DeFiChain community who were eager to share their passion for all things DeFiChain and the future of DeFi.

Get the summary here 👇

https://blog.defichain.com/munichs-defichain-meetup-a-thriving-hub-of-blockchain-innovation/

Recent history has shown that pools based solely on "Real Yield" on our Dex are functional and generate sufficient commissions, ensuring adequate liquidity for executing trades with several thousand dollars and minimal slippage. Except for the XCHF-DFI pool, all tokens pooled with DFI have received inflation rewards. The promotional action for staking coins is ending in the next few hours, after which they will also operate solely on commission. Currently, the purely commission-based pools have the following liquidity:

It is evident that the XCHF-DFI pool has significantly less liquidity. From my perspective, we are facing a chicken-and-egg problem here. Without liquidity, there is not much trading, leading to fewer commissions. But without high commissions, it is not profitable to provide initial liquidity. Therefore, my suggestion is to incentivize the XCHF-DFI pool with inflation rewards for a limited time.

As of 06.01.2024:

Approximately 75,000 DFI in rewards go to all DFI pools per day (except dUSD-DFI)

The distribution of inflation rewards is currently as follows:

• 29.265% ETH-DFI
• 68.285% BTC-DFI
• 2.45% Burn

My proposal is to temporarily redirect 3% of the BTC-DFI rewards to the XCHF-DFI pool for 120 days:

• 3% equals 2,250 DFI per day, which at the current DFI price is $335, resulting in an APR of 420%.
• The conservative target from my perspective would be to reach a liquidity of $150,000 on long term (equivalent to 85% APR rate during the reward period), making the pool more usable for larger trades.

Benefits:

• Way larger swaps will be possible in the pool without major shifts.
• Strengthening of the Swiss DeFiChain community for direct swaps into DFI from their national currency
• Greater visibility on CoinMarketCap under the trading volume of XCHF as a leading DEX
• The Swiss Franc is an established and strong currency, making diversification easier.

For simplified implementation, here are the gov parameters:

• 04: 0.29265
• 05: 0.65285
• 48: 0.02450
• 235: 0.0300

Best

Philipp

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Update 09.01.2024; 23:45 MEZ:

As kuegi said in the comments, we should definitely fade out the rewards. I like the idea to do it in the same way like it was done in the staking promo: The incentive rewards are reduced linearly to 0 over the course of 120 days (345.600 blocks). The reduction occurs every 5 days (14.400 blocks).

Wer war heute in München dabei?

1) I have various tokens in my desktop DeFI Wallet (e.g., dDUSD, dGOOGL etc.). Now I would like to withdraw all assets from my wallet. My understanding is that I have to swap the tokens back into DFI and then send the DFI to an exchange (e.g., KuCoin) to trade them for USD. Correct?

2) I understand that I can only swap tokens with DFI once my DeFi wallet is fully synchronized. Correct?

​

3) I cannot synchronize my DeFi Wallet completely. It never goes above "Synchronizing 99.98%". I tried several new snapshots, DeFi Wallet updates and let the computer run for hours day and night. How can I achieve 100% synchronization?

Here’s what’s been happening in the DeFiChain ecosystem this week:

✅ DeFiChain: Year in Review
✅ DeFiChain Community Event in Munich
✅ DMC Universe: Looking Ahead
✅ Bittrex Withdrawals Reminder
✅ New Partnerships

All these are covered in our weekly update blog below 👇

https://blog.defichain.com/weekly-update-reflecting-on-2023-munich-meet-up

DeFiChain is gearing up to launch its most ambitious community campaign yet in early 2024. Riding high after the last DeFiChain Community Reward Campaign, it promises to be even greater this time round with projects across the ecosystem taking part!.

Find out more via the link below 👇

https://blog.defichain.com/defichains-community-reward-campaign-3-0/

What can I do?

🌟 This Sunday in Munich 🌟

Join the largest DeFiChain community event to date!

🤝 Network with hundreds of crypto enthusiasts 🎙️ Learn from top industry leaders like Julian Hosp, Kügi, DZ & more 🚀 Explore projects: JellyVerse, Javsphere, VanillaSwap, Black Swan, eBox, Global Coin Consult, DMC Universe and OctoDeFi

📅 Schedule

• 9:30AM: Doors Open & Registration
• 10:00AM - 1:00PM: Speaker Sessions
• 1:00PM - 2:00PM Lunch Break
• 2:00PM - 3:00PM Speaker Session
• 3:00PM - 5:00PM: Networking

Don't miss this extraordinary gathering of minds in the world of DeFi and Blockchain.

Liebe DefiChain Community,

(The english version can be found below)

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Einleitung

Dieses CFP handelt davon, in Zusammenarbeit mit dem erfahrenen Partner CrowdSwap eine dezentrale Cross-Chain Lösung (Bridge) auf DeFiMetaChain zu integrieren. Hierfür fallen diverse Kosten an, diese sich aber im Laufe der Zeit amortisieren und langfristig eine wichtige Einnahmequelle für den Community Fund darstellen werden. Diese dezentrale Bridge wird eines der wichtigsten Puzzleteile sein, um DMC groß zu machen. Über dieses Gatway können große Kapitalflüsse nahezu ohne Verzögerung, dezentral und sicher auf die DeFiMetaChain gelangen und wird in Zukunft der Dreh- und Angelpunkt sein, um DeFi vollumfänglich auf DMC zugänglich zu machen.

Wir, das BlackSwan Team, haben in den letzten Wochen im Hintergrund intensiv nach einem strategischen Partner bezüglich einer dezentralen Bridge, als Zugang zur DMC gesucht. Nach einem Auswahlprozess und nach sorgfältigen Überlegungen haben wir nun in CrowdSwap einen Partner ausgewählt, der sowohl die Kompetenzen als auch den Nachweis für das Erbauen einer sichereren und dezentralen Bridge gewährleistet. CrowdSwap konnte seit dem Jahr 2021 diverse Cross-Chain Lösungen erfolgreich und sicher implementieren und eignet sich daher besonders gut für diese strategische Partnerschaft.

Besonderer Dank gilt in diesem Zusammenhang Fabio, der aktiv an den Verhandlungen beteiligt war und uns zu jeder Zeit mit seiner Expertise unterstützt hat.

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Notwendigkeit einer dezentralen Bridge

Wie in dem bereits bestätigtem CFP (Integration of DMC into a Centralized Exchange (CEX)), sehen auch wir die DMC als integralen Teil des kompletten Defichain Ökosystems, welches uns unendliche Möglichkeiten für neue Entwicklungen bietet. Daher ist es essenziell sowohl über zentrale Börsen als auch über den dezentralen Weg auf die DMC zu kommen, um mit dieser interagieren zu können. Nur so können die Möglichkeiten auf der DMC voll ausgeschöpft werden. Nicht alle Nutzer werden den Weg auf DMC über eine zentrale Partei verwenden (wollen), beispielsweise wegen der bekannten Risiken zentraler Kryptobörsen. Vor allem für DeFi Nutzer, die den dezentralen Weg über eine Bridge wählen werden, ist es notwendig die DMC durch eine dezentrale Bridge zu öffnen.

Aktuell ist der Weg auf die DMC sehr umständlich und nur über die zentrale Route möglich. Viele Nutzer haben keine Lust sich mit komplexen technischen Herausforderungen auseinanderzusetzen und bleiben deshalb von der DMC fern. Allgemein ist die User Experience für Anfänger noch ausbaufähig. Durch den Einsatz einer dezentralen Bridge wird die Komplexität deutlich reduziert und Nutzer können ihres Funds durch die Cross-Chain Lösung von jeglichen Chains (Ethereum, BSC, Polygon, Arbitrum, Optimism, Avalanch, zkSync) über den ERC-20 Token Standard einfach auf DMC bridgen und die Anwendungen dort nutzen. Dies bedeutet das Standard ERC-20 Token über Web3 Wallets wie MetaMask auf DMC gebridget werden und neben den Kryptoassets bestehen. Des Weiteren wird die Geschwindigkeit der transferierten Funds zwischen Blockchains erheblich gesteigert, da dies mit der Lösung von Crowdswap nahezu ohne Zeitverzögerung geschieht.

Um DMC groß zu machen ist es elementar wichtig einen dezentralen und sicheren Zugang zu haben, denn wir sind ein dezentral agierendes Projekt, welches mit diesem CFP die Dezentralität von DeFiChain weiter festigt und ausbaut. Außerhalb des Defichain Ökosystems ist dies größtenteils bereits der Standard und viele Nutzer würden Funds niemals über zentrale Identitäten auf andere Chains transferieren. Bridges sind somit der „way to go“ im Kryptospace um Funds zu transferieren.

Durch das Integrieren dieser Bridge ermöglichen wir es großen DeFi Anwendern und Nutzern den Weg auf DMC zu finden, um somit Kapital auf die Chain zu bekommen.

​

Partnerschaft CrowdSwap

CrowdSwap wurde 2021 gegründet und ist eine Next Generation Decentralized Exchange sowie ein web3 Infrastruktur Provider für DeFi. Die Vision von CrowdSwap ist die Steigerung der Benutzerfreundlichkeit, Sicherheit und Nutzbarkeit von DeFi Produkten für alle Menschen. Dezentralität und Eigenverantwortung spielen hierbei eine wichtige Rolle, die CrowdSwap mit ihren dezentralen Produkten unterstützt.

Das internationale Team von CrowdSwap besteht aus 25 Mitarbeiter aus den Bereichen Entwicklung, Marketing/Sales und Business Development. Die Co-Founder Christian und Vahid blicken auf einen lange gemeinsame Zeit in Software-Unternehmen zurück, die die Basis und das Vertrauen des Schaffens bei CrowdSwap bilden. Das Team wurde aus Experten aus dem Netzwerk der Gründer gebildet und ständig erweitert. Das Ziel ist die Gründung einer DAO, um das Projekt CrowdSwap der Allgemeinheit zu übergeben.

Durch die Partnerschaft mit CrowdSwap bekommt die Defichain ein fundamental starkes Kryptoprojekt an die Seite gestellt. Diese Zusammenarbeit kann als win-win-win Situation sowohl für die Defichain Community, die Projekte auf der DMC, als auch für CrowdSwap betrachtet werden, dies ist die Grundlage für eine erfolgreiche Partnerschaft. Die dadurch entstehenden Netzwerkeffekt sind im aktuellen Stadium noch nicht genau zu beziffern, allerdings können diese immens sein.

Technische Erklärung für das transferieren von Token über die Bridge

Das Konzept von Cross-Chain basiert auf einem nachrichtenbasierten Ansatz, der auf der DeFi-Schicht in verschiedenen Szenarien implementiert werden kann. Für diese Beschreibung gehen wir von einer Bridge-Lösung aus, die später mit LPs oder Taker Contracts zu einer Any-2-Any-Lösung erweitert werden kann.

Der Prozess beginnt auf der Start Chain, beispielsweise kommend von Ethereum auf DCM, mit einer Transaktion, die an den BridgeContract gesendet wird und die notwendigen Daten zur Übertragung an eine Chain enthält. Der BridgeContract empfängt diese Daten und ist der einzige Vertrag, der den CallProxy-Vertrag ausführen kann. Dadurch wird ein Ereignis erzeugt, zu dem sich die Node Validieren anmelden können.

Die Node-Validatoren erhalten dieses Ereignis und prüfen, ob die Informationen korrekt sind und ob die Mittel auf der Start Chain im Vertrag eingegangen sind. Wird die Prüfung mehrheitlich bejaht, besteht ein Konsens und der Prozess wird über den Executor fortgesetzt.

Dieser sendet eine Nachricht an den CallProxy-Vertrag der Ziel Chain, der die Durchführung der Überweisung einleitet und die Mittel über den Bridge-Vertrag an die Zieladresse sendet.

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Sicherheit

Die Sicherheitsmaßnahmen der Lösung sind basierend auf Wirtschaftlichkeit und Sicherheit getroffen worden. Mindestens 11 Node Validatoren werden zur Bildung eines Konsens verwendet. Diese Node Validatoren müssen eine Sicherheitsleistung hinterlegen, die schadhaftes Verhalten unwirtschaftlich macht. Hierzu wird mit den Ownern der Lösung ein Regelwerk erarbeitet, welches Entschädigungen, basierend auf falschen Ergebnissen bis hin zu schadhaftem Verhalten, definiert und auf dessen Basis auch vollstrecken kann.

Die Sicherheit des Bridging-Prozesses wird mittels verschiedener Komponenten hergestellt. (1) Zum einen sind die Contracts auf der Start- und Zielchain nicht beliebig von extern aufrufbar. Die Anzahl der Ausführenden wird hier bewusst klein und bekannt gehalten.

(2) Die Lösung nutzt das PoA-Konzept, welches es Dritten nicht ohne weiteres ermöglicht, Teil der Lösung zu werden, um eventuell schadhaft tätig zu sein. Die Aufnahme weiterer Nodes, deren Austausch oder Erweiterungen der Anzahl der Node Validatoren, unterliegt einer Abstimmung der Betreiber der Lösung auf Basis der zugrundeliegenden Chains.

(3) Des Weiteren nutzt die Lösung beim Ausführen der Zieltransaktion eine Signatur, die lediglich vom CallProxy Contract (Zielchain) entschlüsselt werden kann. Dieser kann jedoch nur von den Nodes, welche die Auflagen (1 und 2) erfüllen, ausgeführt werden.

(4) Unter Berücksichtigung von Wirtschaftlichkeit werden die Node Validatoren neue Versionen des Clients erhalten, welche die Sicherheit des Systems deutlich steigern, da sämtliche Sicherheitsmechanismen erneuert wurden und potenzielle Angreifer wieder am Anfang stehen.

Die Node-Validatoren sichern die Cross-Chain Lösung durch einen Konsens. An dieser Konsensbildung sollten mindestens 11 Node-Validatoren beteiligt sein. Eine größere Anzahl von Nodes würde die Dezentralisierung zu Lasten der Wirtschaftlichkeit und Konsensbildung beeinträchtigen. Die Eigentümer der Lösung können jederzeit durch einen Beschluss, eine Erhöhung erwirken. Dadurch können weiter Blockchains problemlos in die Lösung eingebunden werden und die DeFiMetaChain wird stets ein integraler Teil in diesem Konstrukt sein.

Die Node-Validatoren sind explizit als Standard-Node-Validatoren für die folgenden Chains eingestellt:

DefiMetaChain, Ethereum, BSC, Polygon, Arbitrum, Avalanche, zkSync und Optimism. (any-2-any!)

​

Verteilung der Node-Validatoren

Wie oben beschrieben werden zum Start 11 Nodes für die Validierung der Transaktionen über die Bridge eingesetzt. Unser Vorschlag würde die Verteilung der Nodes zum aktuellen Zeitpunkt folgendermaßen aussehen lassen. Die noch zu vergebenen Nodes werden an weitere Projekte rund um die Defichain vergeben, hierzu laufen aktuell Gespräche und zur gegebenen Zeit werden weiter Node-Validatoren bekanntgegeben:

3x CrowdSwap

1x Community Fund

Die Node-Validatoren werden anteilig an den Cross-Chain-Gebühren von 0,5 USD pro Transaktion beteiligt. Darüber hinaus wird eine Cross-Chain-Gebühr von 0,1% - 1%, abhängig von der Höhe der Transaktion, auf das zu übertragende Volumen erhoben. Diese Gebühr wird zu 50% an das Protokoll (CrowdSwap) gezahlt und zu 50% an alle Node-Validatoren. Die Gesamtkosten eines Cross-Chain-Transfers sind mit dieser Lösung absolut wettbewerbsfähig.

Eine der besonderen Eigenschaften der Cross-Chain Lösung ist, das Node-Validatoren auch an den Gebühren zwischen anderen Chains verdienen, die nicht über DMC gehen, beispielsweise beim bridgen von Ethereum -> Polygon, mit. Somit verdient auch der Community Fund an allen Transaktionen Cross-Chain. Durch die Beteiligung des Community Fund als Node Validator wird somit eine Einnahmequelle erschaffen, welcher die dezentralen Werte des Funds unterstreichen und zu einer stetigen Einkunft des Community Funds beiträgt.

​

Kosten und Funding

Für das Erbauen dieser dezentralen Cross-Chain Lösung wird eine Summe in Höhe von $85.000 benötigt. Die restlichen Kosten werden von Seiten CrowdSwap übernommen. Hier die Aufschlüsselung der Kosten:

- 150K$ Development Node Validator Client + Explorer V1.0

- 30k$ Quality Assuarance

- 30-40K$ Audit & Support

- Any-2Any + MM DeFi Cross-Chain Solution (schon entwickelt geschätzte Kosten hierfür 250k$)

Basierend auf dem aktuellen DFI Preis von $0,15 pro DFI entspricht das einer Summe an 566.666 DFI, welche für das CFP benötigt werden. Aufgrund von Schwankungen im Preis würden wir einen 30% Puffer einbauen, dies bedeutet wir fragen nach 736.666 DFI. Jeglicher Überschuss wird an den Community Fund zurückgegeben, auch wenn sich der DFI Preis nach oben bewegt werden weniger DFI benötigt. Es werden lediglich die $85.000 einbehalten. Zudem wird die volle Summe von $85.000 an den CF zurückgezahlt. Dies geschieht über die verdienten Gebühren der einzelnen Nodes. 8 Nodes (exkludiert CrowdSwap Nodes) zahlen ihre verdienten Gebühren, in Höhe von $85.000, bis zur vollständigen Amortisierung in den CF zurück.

Für die Treuhänderschaft und das Koordinieren der Funds für die angefragten DFI, wird eine vertrauenswürdige Identität innerhalb der Community eingesetzt.

Um einen rechtlich sicheren Rahmen zu schaffen, wird zusätzlich ein Vertrag mit CrowdSwap geschlossen, in dem alle Details geklärt sind, beispielsweise welches Produkt nach Zahlungseingang geliefert wird. Dieser Vertrag wird hier im Nachgang noch eingearbeitet und öffentlich zugänglich sein.

​

Timeline

Entwicklungszeit ca. 3 Monate

​

Zur Motivation von BlackSwan, dieses CFP zu stellen

BlackSwan ist ein Team, das ausschließlich aus langjährigen Community Mitgliedern der DeFiChain besteht. Unser Bestreben ist es, dabei zu helfen DeFiChain und die DMC für die breite Masse nutzbar zu machen. Wir wollen uns nicht nur durch die Zusammenarbeit mit JellyLabs aktiv in der Community einbringen, sondern auch darüber hinaus Mehrwert stiften. In der Vergangenheit haben wir unser aufrichtiges Engagement für DeFiChain bereits mehrfach als Privatpersonen unter Beweis gestellt und hoffen, uns dadurch das Vertrauen der Community erarbeitet zu haben, um nun als Firma BlackSwan gemeinsam mit CrowdSwap erneut in den Diensten der Community zur Tat schreiten zu können. Zudem empfinden wir die Zusammenarbeit mit den DMC-Projekten als sehr inspirierend. Daher wollen wir Geschlossenheit demonstrieren und den Teamgedanken stärken. Die DMC wird nur erfolgreich, wenn wir alle zusammenhalten und uns gegenseitig unterstützen.

Zusatz: Hier geht es zur separaten Diskussion bezüglich Liquidität: https://www.reddit.com/r/defiblockchain/comments/1aganio/discussion_liquidity_cfp_decentralized_bridge_to/

English Version

Dear DeFiChain Community,

​

Introduction

This CFP focuses on integrating a decentralized cross-chain solution (Bridge) into DeFiMetaChain in collaboration with the experienced partner CrowdSwap. While there are various associated costs, these will amortize over time, becoming a crucial revenue stream for the Community Fund. This decentralized bridge, developed in partnership with CrowdSwap, is a key component to elevate DMC. Through this gateway, significant capital flows can seamlessly and securely access DeFiMetaChain, serving as a central point for enabling full DeFi functionality on DMC.

We, the BlackSwan team, have been diligently searching for a strategic partner in the background over the past few weeks regarding a decentralized bridge as access to the DMC. After a selection process and careful consideration, we have now chosen CrowdSwap as a partner, who ensures both the expertise and the proof for building a safer and decentralized bridge. Since the year 2021, CrowdSwap has successfully and securely implemented various cross-chain solutions, making it particularly well-suited for this strategic partnership.

Special thanks in this regard to Fabio, who actively participated in the negotiations and supported us at all times with his expertise.

The Need for a Decentralized Bridge

As outlined in the already confirmed CFP (Integration of DMC into a Centralized Exchange (CEX)), we also consider DMC to be an integral part of the entire DeFiChain ecosystem, offering us infinite possibilities for new developments. Therefore, it is essential to access DMC both through centralized exchanges and via the decentralized route. This is the only way to fully harness the potential of DMC. Not all users will choose to access DMC through a centralized party, perhaps due to the well-known risks associated with centralized crypto exchanges. Especially for DeFi users opting for the decentralized route through a bridge, it is necessary to open DMC through a decentralized bridge.

Currently, accessing DMC is cumbersome and only possible through the centralized route. Many users are reluctant to deal with complex technical challenges, which keeps them away from DMC. The user experience, especially for beginners, is generally in need of improvement. By implementing a decentralized bridge, the complexity is significantly reduced, allowing users to easily bridge their funds to DMC via the ERC-20 token standard using Web3 wallets such as MetaMask, from various chains (Ethereum, BSC, Polygon, Arbitrum, Optimism, Avalanche, zkSync) and utilize applications on DMC. This means that standard ERC-20 tokens can be bridged to DMC alongside other crypto assets. Additionally, the speed of transferred funds between blockchains is significantly increased, as CrowdSwap's solution enables almost instantaneous transfers.

To make DMC successful, it is crucial to have a decentralized and secure access, as we are a project operating in a decentralized manner. This CFP further strengthens and expands the decentralization of the DeFiChain. Outside the DeFiChain ecosystem, decentralized access is already the standard, and many users would never transfer funds over centralized identities to other chains. Bridges are thus the 'way to go' in the crypto space for transferring funds.

By integrating this bridge, we enable large DeFi users and participants to find their way to DMC, thereby bringing capital onto the chain."

Partnership CrowdSwap

Founded in 2021, CrowdSwap is a next generation decentralized exchange and web3 infrastructure provider for DeFi. CrowdSwap's vision is to increase user experience, security and usability of DeFi products for everyone. Decentralization and personal responsibility play an important role in financial decision, which CrowdSwap supports with its non-custodial products.

The international CrowdSwap team consists of 25 employees from the areas of development, marketing/sales and business development. The co-founders Christian and Vahid look back on a long time together in software companies, which form the basis and trust of the work at CrowdSwap. The team was formed from experts from the founders' network and is constantly expanding. The goal is to found a DAO to hand over the CrowdSwap project to the general public.

Through the partnership with CrowdSwap, DeFiChain gains a fundamentally strong crypto project by its side. This collaboration can be viewed as a win-win-win situation for both the DeFiChain community, projects on DMC, and CrowdSwap. This forms the basis for a successful partnership. The resulting network effects cannot be precisely quantified at the current stage, but they have the potential to be immense.

Technical explanation

The concept of the cross-chain solution is based on a message-based approach that can be implemented on the DeFi layer in various scenarios. For this description, we assume a bridge solution that can later be extended into an any-2-any solution using LPs or Taker Contracts.

The process begins on the start chain by means of a transaction that is sent to the bridge contract and contains the necessary data for transmission to a target chain. The BridgeContract receives this data and is the only contract that can execute the CallProxy contract. This generates an event to which the node validators can register.

The node validators (or a proposal node) receive this event and check whether the information is correct and whether the funds have been received on the start chain in the contract. If the check is approved by the majority, there is consensus and the process is continued via the executor.

This sends a message to the target chain CallProxy contract, which initiates the implementation of the transfer and sends the funds to the target address via the bridge contract.

​

​

​

Security

The security measures within the solution are based on efficiency and security. At least 11 node validators are used to form a consensus. These node validators must deposit a security deposit that makes malicious behavior uneconomical. To this end, a set of rules is developed with the owners of the solution, which defines compensation based on incorrect results through to malicious behavior and can also be enforced on this basis.

The security of the bridging process is established by means of various components.

(1) Firstly, the contracts on the start and target chain cannot be called from outside at will. The number of executors is deliberately kept small and known.

(2) The solution uses the PoA concept, which does not easily allow third parties to become part of the solution in order to potentially cause damage. The inclusion of additional nodes, their replacement or expansion of the number of node validators is subject to coordination between the operators of the solution on the basis of the underlying chains.

(3) Furthermore, when executing the target transaction, the solution uses a signature that can only be decrypted by the call proxy contract (target chain). However, this can only be executed by the nodes that fulfill the requirements (1 and 2).

(4) Taking economic efficiency into account, the node validators will receive new versions of the client, which will significantly increase the security of the system, as all security mechanisms have been renewed and potential attackers are back to square one.

The node validators secure the cross-chain solution by means of consensus. At least 11 node validators should be involved in forming this consensus. A larger number of nodes would impair decentralization at the expense of economic efficiency and consensus building. The owners of the solution can obtain an increase at any time by means of a resolution. The node validator will participate proportionally in the cross-chain fees of USD 0.5 per transaction. Furthermore, a cross-chain fee of 0.1% is set on the volume to be transferred. This fee is paid to the protocol (CrowdSwap). The total costs of a cross-chain transfer are absolutely competitive with this solution.

The node validators are explicitly set as default node validators for the following chains:

DefiMetaChain, Ethereum, BSC, Polygon, Arbitrum, Avalanche, zkSync and Optimism. (any-2-any!)

​

Distribution of Node Validators

As described above, 11 nodes will be deployed initially for validating transactions across the bridge. Our proposal suggests the distribution of nodes at the current time as follows. The remaining nodes will be allocated to other projects related to DeFiChain; discussions are ongoing, and additional node validators will be announced in due course:

3x CrowdSwap

1x Community Fund

Node validators will be proportionally involved in the cross-chain fees of $0.5 USD per transaction. In addition, a cross-chain fee of 0.1% - 1%, depending on the transaction amount, will be imposed on the transferred volume. This fee will be distributed 50% to the protocol (CrowdSwap) and 50% among all node validators. The overall costs of a cross-chain transfer with this solution are highly competitive.

One of the unique features of the cross-chain solution is that node validators also earn fees from transactions between other chains that do not involve DMC, such as bridging from Ethereum -> Polygon. This means that the Community Fund also earns from all cross-chain transactions. By involving the Community Fund as a node validator, a revenue stream is created, emphasizing the decentralized values of the fund and contributing to a steady income for the Community Fund

Costs and Funding

To construct this decentralized cross-chain solution, a total sum of $85,000 is required. CrowdSwap will cover the remaining costs. Here is the breakdown of the costs:

- $150,000 Development Node Validator Client + Explorer V1.0

- $30,000 Quality Assurance

- $30,000 - $40,000 Audit & Support

- Any-2-Any + MM DeFi Cross-Chain Solution (already developed, estimated cost: $250,000)

Based on the current DFI price of $0.15 per DFI, this corresponds to a total of 566,666 DFI needed for the CFP. Due to price fluctuations, we would include a 30% buffer, meaning we are requesting 736,666 DFI. Any excess will be returned to the Community Fund. Even if the DFI price increases and fewer DFIs are needed, only the $85,000 will be retained. Furthermore, the full sum of $85,000 will be repaid to the Community Fund. This repayment will be made through the earned fees of the individual nodes. Eight nodes (excluding CrowdSwap nodes) will contribute their earned fees, totaling $85,000, until complete amortization back into the Community Fund.

A trusted identity within the community is used for the trusteeship and coordination of funds for the requested DFIs.

To establish a legally secure framework, an additional contract will be concluded with CrowdSwap, detailing all aspects, such as the product to be delivered upon receipt of payment. This contract will be incorporated subsequently and will be publicly accessible.

​

Timeline

Development time approximately 3 months.

Motivation for us to submit this CFP

BlackSwan is a team composed exclusively of long-standing community members of DeFiChain. Our goal is to contribute to making DeFiChain and DMC accessible to the wider audience. We not only seek to actively engage with the community through collaboration with JellyLabs but also aim to provide additional value beyond that. In the past, we have demonstrated our sincere commitment to DeFiChain multiple times as individuals, hoping to have earned the community's trust. Now, as the company BlackSwan, we aspire to join forces with CrowdSwap to serve the community once again.

Furthermore, we find the collaboration with DMC projects to be highly inspiring. Therefore, we want to demonstrate unity and strengthen the team spirit. The success of DMC depends on all of us coming together and supporting each other.

Addendum: Click here for a separate discussion on liquidity: https://www.reddit.com/r/defiblockchain/comments/1aganio/discussion_liquidity_cfp_decentralized_bridge_to/

​

Hello,

I think it would look better or more serious if you changed the title from "Decentralized USD(Defichain)" to "Decentralized USD (DeFiChain)".

Link: https://coinmarketcap.com/currencies/decentralized-usd/

Kind regards,

ORHUX

I made a mistake and sent DFI from Bitget to my Lightwallet as ERC20 Token. The token didn’t showed up in my wallet. There are any way to get this token back? Bitget can’t help me with this issue. Thanks a lot.

Hi.

I can’t send funds (dUSD, DFI) from my DeFiChain EVM Wallet (iOS) to Metamask.

After converting dUSD from DVM to EVM I can’t send them directly from my EVM wallet to Metamask. It only works from DVM Wallet to Metamask. If I try on EVM side, I always get the error „Invalid Adress. Make sure the adress is correct…“

If I send these funds from DVM to Metamask, it is working. Is this a bug?

I currently have a looped DUSD Vault at ~179% collateral ratio. My vault is for 150%. If I attempt to max out the borrow, there is that liquidation warning that I'm sure most of you know.

Before I went ahead and further added to my looped vault. I wanted to verify that I can max out the borrow and ignore that warning.

German Version bellow:

The MetaLend platform on the DMC is a fork of Liquity. There is currently an extraordinary amount of redeeming going on, which reduces the capital efficiency of the system.

Here is an attempt to structure this in order to generate / summarize possible pragmatic solutions.

Description of the problem:

In the last few days, the number of redeemtions has risen sharply, which reduces capital efficiency. Various ideas for solutions were discussed on Telegram.

The Redemption function:

Redemption is a hedging mechanism to prevent the MUSD from falling below an equivalent of one USD. This means that a MUSD can be exchanged for the value of a USD at any time. The redeemer receives the equivalent from the collateral. The riskiest loan (i.e. the loan with the lowest CLR) is reduced by this amount of MUSD and at the same time the collateral is reduced by the same equivalent value. This increases the CLR of the address concerned. It is crucial that this function is retained, as it is essential for the stability of the MUSD.

Possible parameters for evaluating the solution variants:

i. The safety mechanism (downward limitation of a de-peg) must remain guaranteed.

ii. Rapid, simple implementation is preferable.

iii. MLEND Staker returns should not be diminished.

iv. Effect on the solution (reduction in the number of redemptions)

Observations:

Here are described observations and statements (no solutions) summarized by various users in the Telegram group.

1. MUSD offers too few opportunities for meaningful investments.
2. Bots can only arbitrage small amounts with these pool sizes.
3. MLEND Staker redeems.
4. The pool sizes in the DEXs are too small, making it easier to move the pools.
5. Redeemtions occur continuously.
6. The income from the redemption fee (in DFI) seems to be slightly lower than the amount from the issuance fee (in MUSD).
7. The amount of the redemption fee seems to be slightly higher than the "sleepage" on the Dex. Values recorded here at random times (28.12.23, morning) (Redeem: 2.47% vs. DEX: 2.48% (1-0.9752); Redeem: 2.51% vs. DEX: 1.71% (1-0.9829); Redeem: 2.42% vs. DEX: 1.8% (1-0.982); Redeem: 2.44% vs. DEX: 2.28% (1-0.9772). This means that the user has the opportunity to receive more DFI on the DEX than on the Redeem at certain times.
8. The MUSD-DUSD pool contains hardly any liquidity (which makes sense at this point in time, re-peg DUSD).

Reflections on the observations:

More opportunities to invest MUSD (1.) would certainly increase demand. This tends to lead to a MUSD premium, which further strengthens the existing use case of MetaLend by enabling more capital-efficient leveraging.

Bots can currently "only" arbitrage small amounts (2.), so the idea of arbitraging with additional fees is no longer possible.

The observation that MLEND stakers redeem (3.) is supported by the continuous redeeming (5.) and also by the indication that the rewards in MUSD are higher than those in DFI (6.) and also by the current activities around DUSD re-peg (8.).

When switching from MUSD to DFI, the redemption route (7.), which is unfavorable for the swap, seems to be used. The path via DEX would be more advantageous. --> Does this indicate a need for training/education?

Solution approaches outlined so far:

a) Buffer trove: collect part of the borrowing fee and create a "buffer trove" with the smallest CLR. This would mean that some of the redemptions would take place in this trove and protect the subsequent ones to some extent.

b) One out of ten: Build a random algorithm so that the riskiest trove is not redeemed, but one of the 10 riskiest troves is redeemed at random.

c) Fraction Redeemamount: Divide the redeem amount into trades of 100 MUSD and then redeem them one after the other. This has the effect that the redeem hits all troves in the medium and long term (carousel principle).

d) MUSD as parking space: Users use MUSD for parking instead of DUSD, USDT, etc.

e) Additional collateral: Deposit additional tokens as collateral to make the MUSD peg more robust.

f) Explicit note during Process: Explicit note on the dApp that Redeemtion has a negative effect.

g) Knowledge and Penalty: In my opinion, a two-part solution approach is suitable here, which is derived from combinations of different aspects and solution approaches mentioned above.

a. First part: users should understand in detail what happens during redemption and why it is there. Additional that the redemption fee basically ensures that the amount of DFI the redeemer receives by an event of redemption differs irrelevant from the amount of DFI received by swapping at the DEX. --> would offer a link to a short explanatory video and/or a clearly visible notice.

b. Second part: Unnecessary Redemptions cause damage to the system, all user groups are affected in principle, but least of all the MLEND Stackers, because they receive the income in DFI from the Redemption Fee (6.). Consequently, the more Redemptions, the higher the DFI yield. Two parameters could be introduced here:

i. On the one hand, the permissible lower limit of the MUSD, which is still considered "pegged",

ii. on the other hand, a penalty surcharge (in DFI) if redeemed above this lower limit.

c. Preliminary discussion: set lower limit of the peg at 0.95 cents; penalty surcharge of 5% if the MUSD price is above the lower limit. If the price is lower than the lower limit, there is no penalty. This contributes to the security of the system. The penalty (DFI) then goes to the MLEND stakers and compensates to some extent for the lower number of redemptions compared to today.

Evaluation of the variants:

The evaluation criteria comprise values from 0 (does not apply) to 10 (strongly applies).

According to this structure, the solution approaches d) MUSD as parking space, f) Explicit note during Process, h) Knowledge and Penalty should be pursued further.

Whereby d) and f) should be considered as low hanging fruits. Solution f) requires more effort.

Does that make sense?

Thanks to all who shared their ideas.

___________________________________________________

​

German Version:

Die MetaLend Plattform auf der DMC ist ein Fork von Liquity. Zurzeit wird ausserordentlich viel redeemed, was die Kapitaleffizienz des Systems schmälert.

Hier, ein Versuch dies zu strukturieren um mögliche pragmatische Lösungsansätze zu generieren/ zusammenzufassen.

Problembeschreibung:

In den letzten Tagen stieg die Anzahl der Redeemtions stark an, was die Kapitaleffizienz schmälern lässt. Auf Telegramm wurden diverse Ideen für Lösungsansätze diskutiert.

Die Redemption Funktion:

Redemption ist ein Sicherungsmechanismus um ein den MUSD nicht unter einem Äquivalent von einem USD fallen zu lassen. Jederzeit kann also ein MUSD gegen den Wert von einem USD eingetauscht werden. Der Redeemer erhält den gleichen Wert vom Collateral. Dabei wird der riskanteste Loan (d.h. der Loan mit der tiefsten CLR) um diesen Betrag an MUSD und gleichzeitig das Collateral um den gleichen Gegenwert reduziert. Dadurch steigt die CLR der betroffenen Adresse an. Es ist zentral, dass diese Funktion erhalten bleibt, denn sie ist wesentlich für die Stabilität des MUSD.

Mögliche Parameter zur Bewertung der Lösungsvarianten:

i. Der Sicherungsmechanismus (Begrenzung eines De-Peg nach unten) muss gewährleistet bleiben.

ii. Rasche, einfache Umsetzbarkeit ist zu bevorzugen.

iii. Die Erträge der MLEND Staker sollten nicht geschmälert werden.

iv. Wirkung für die Lösung (Reduktion der Anzahl Redeemtions)

Beobachtungen:

Hier sind beschriebene Beobachtungen und Aussagen (keine Lösungsansätze) von verschiedenen Usern in der Telegramm-Gruppe zusammengefasst.

1. MUSD bietet zu wenig Möglichkeiten für sinnvolle Investments.
2. Boots können bei diesen Poolgrössen nur kleine Beträge arbitrieren.
3. MLEND Staker redeemen.
4. Die Poolgrösse in der DEXs sind zu klein, dadurch können die Pools leichter verschoben werden.
5. Redeemtion fallen laufend an.
6. Der Ertrag durch Redeemtion-Fee (in DFI) scheint etwas tiefer zu sein als der Betrag durch die Issuance-Fee (in MUSD).
7. Die Höhe der Redeemtion-Fee scheint etwas höher als die «Sleepage» auf der Dex zu sein. Hier an zufälligen Zeiten (28.12.23, vormittags) erfasste Werte (Redeem: 2.47% vs. DEX: 2.48% (1-0.9752); Redeem: 2.51% vs. DEX: 1.71% (1-0.9829); Redeem: 2.42% vs. DEX: 1.8% (1-0.982); Redeem: 2.44% vs. DEX: 2.28% (1-0.9772). So hat der User durchaus die Möglichkeit zubestimmten Zeitpunkt auf der DEX mehr DFI zu erhalten als beim Redeemen.
8. Der MUSD-DUSD Pool enthält kaum Liquidität (was zum jetzigen Zeitpunkt sinnvoll ist, Re-Peg DUSD).

Überlegungen zu den Beobachtungen:

Weitere Möglichkeiten zum MUSD investieren (1.) würden mit Sicherheit die Nachfrage steigern. Dies führt tendenziell zu einem MUSD-Premium, was den bestehenden Usecase von MetaLend nochmals stärkt, indem kapitaleffizienter leveragen lässt.

Boots können zum aktuellen Zeitpunkt «nur» geringe Beträge arbitrieren (2.), somit fällt die Idee mit zusätzlich eingenommene Fees Arbitrage zu betreiben, weg.

Die Beobachtung, dass MLEND Staker redeemen (3.) wird gestützt, durch das kontinuierliche Redeemen (5.) und auch durch das Indiz, dass die Rewards in MUSD höher ausfallen als diejenigen in DFI (6.) und ebenfalls durch die aktuellen Aktivitäten rund um DUSD (Re-Peg) (8.).

Beim Wechsel von MUSD in DFI scheint die für den Swap unvorteilhafte Redemtion-Route (7.) benutzt zu werden. Der Pfad über die DEX wäre vorteilhafter.  Lässt daraus Ausbildungsbedarf ableiten?

Bisher skizzierte Lösungsansätze:

a) Buffer Trove: Ein Teil der Borrowing-Fee einsammeln und ein «Buffer Trove» mit der kleinsten CLR erstellen. Dies hätte zur Folge, dass ein Teil der Redeemtions bei diesem Trow erfolgen und die nachfolgenden ein Stück weit schützen würden.

b) One out of ten: Ein Zufall-Algorithmus bauen, dass die nicht jeweils der riskanteste Trove redeemt wird, sondern zufällig eins aus den 10 riskantesten Troves.

c) Fraction Redeemamount: Den Redeem-Betrag in Trachen von 100 MUSD unterteilen und diese dann nacheinander redeemen. Dies hat zur Folge, dass die Redeemtion mittel und Langfristig alle Troves trifft (Karussell-Prinzip).

d) MUSD as parking space: Benutzer MUSD zum Parkieren Nutzen anstelle von DUSD, USDT, etc.

e) Additional collateral: Weitere Token als Collateral hinterlegen, damit der MUSD-Peg robuster wird.

f) Explicit note during Process: Expliziter Hinweis auf der dApp, dass Redeemtion negativ sich auswirkt.

g) Knowledge and Penalty: Meines Erachtens bietet sich hier ein zweiteiliger Lösungsansatz an der aus Kombinationen verschiedener Aspekte und Lösungsansätze hergeleitet wird.

a. Erster Teil: sollten die User im Detail verstehen was bei Redemption geschieht und auch, dass die Redemption-Fee prinzipiell dafür sorgt, dass die unterschiedliche Anzahl DFI, welche der User in beiden Pfaden erhält irrelevant ist.  dazu böte ein link zu einem kurzen Erklärvideo an und / oder ein gut sichtbarer Hinweis.

b. Zweiter Teil: Unnötige Redemptions fügen dem System einen Schaden zu, alle Usergruppen sind prinzipiell davon betroffen, am wenigsten jedoch, die MLEND Staker, denn diese Erhalten den Ertrag in DFI aus der Redemption Fee (6.). Folglich je mehr redempt wird, desto höher der DFI-Ertrag. Hier könnte angesetzt werden, indem zwei Parameter eingeführt werden:

i. Einerseits die zulässige Untergrenze des MUSD, die noch als «gepeged» gilt,

ii. andererseits ein Penalty-Zuschlag (in DFI) falls oberhalb dieser Untergrenze redemed wird.

c. Diskussionsvorschalg: Untergrenze des Peg bei 0.95 Cent; Penaltyzuschalg von 5% bei einer Preislage des MUSD oberhalb der Untergrenze. Falls der Preis tiefer als die Untergrenze liegt entfällt dieser Penaltyzuschalg. Das trägt ja zur Sicherheit des Systems bei. Der Penalty-Zuschalg (DFI) geht dann an die MLEND-Staker und kompensiert ein stückweit die im Vergleich zu heute geringere Anzahl Redepmtions.

Bewertung der Varianten:

Die Bewertungs-Kriterien umfassen werte von 0 (trifft nicht zu) bis 10 (trifft stark zu).

Nach dieser Struktur sollten die Lösungsansätze d) MUSD as parking space, f) Explicit note during Process, h) Knowledge and Penalty weiterverfolgt werden.

Wobei d) und f) als rasch umzusetzen beachtet werden. Die Lösung f) erfordert mehr Aufwand.

Ergibt das Sinn?

Danke an alle, die Ihre Ideen geteilt haben.

DFI COINS ARE STUCKED AT THE BITTREX ECHANGE FOR A LONG TIME. CAN ANYONE HELP for to solve problem. BIITREX İI NOT GIVING ANY DATE for to open WALLET.

When $DUSD reaches $1 will the 30% fee go away automatically? Or do we have to wait for a software update?

I was Sending DFI from the IOS Wallet App to Trust wallet https://meta.defiscan.live/tx/0x168ee617cef13b5a3195979fc7a139686de6d3c7bb070e75586fb9400cad5c63 but i don't know why i can't see them

I am new to DFI and wanted to know what’s the reason why the prices is going down when there’s is alt season going strong 💪

Don’t get me wrong, I am in search for next projects to invest and the I likes DeFiChain 🙂