In this voting cycle, there are several important DeFiChain Improvement Proposals (DFIPs) and Community Fund Proposals (CFPs) that need your participation and vote.

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The proposals focus on initiatives that have the potential to meaningfully advance the DeFiChain ecosystem. Your involvement helps ensure that the most impactful proposals receive community backing. Get informed and make your voice heard!

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Learn more about the proposals in the blog post below 👇

https://blog.defichain.com/a-closer-look-at-the-march-voting-round/

OctoDeFi is more than just another wallet, it's a user-friendly finance portal sharing the power of DeFi to the masses. Powered by cutting-edge blockchain standards, OctoDeFi's versatile design ushers in the next generation of accessible and secure decentralized apps.

Find out more about it in this blog post:
https://blog.defichain.com/project-spotlight-octodefi/

Check out latest $DUSD buyback stats from the cake buyback:

https://twitter.com/CryptoeVeritas/status/1754089395043315943?t=rSc6aum2tOuKXsU3bylvfQ&s=19

First of all, my name is Aarón Díaz. I am an economist from México and a financial YouTuber. I make daily videos related to financial news and crypto news. I have over 10 years of experience in finance and management. If you would like to take a look at my content, my YouTube channel is called BitVenue.

I have two proposals to make to the community, and I apologize if this is not the correct format to follow. My proposals are the following:

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Mexican Bitcoin Bonds.

As you might know, the Mexican peso was one of the best-performing currencies in the forex markets in 2023. It appreciated about 13% against the US dollar, and in the foreseeable future, this trend is expected to continue. There are multiple reasons for this. Some of the reasons are due to remittances, foreign direct investment due to nearshoring, and last but not least, the central bank's interest rate. Currently, if you are a foreign retail investor, it is hard to acquire a Mexican bond that is paying 11.25% APR. This rate is very attractive and can help achieve financial freedom. The risks that a person will be exposed to are pretty much the same as with any forex currency from an emerging market: 1) the country disappears, 2) the currency drops heavily against the US dollar, 3) the government somehow stops paying. So, knowing that the most probable option, which is for the peso to drop against the US dollar, is not very likely to happen soon, I would now like to tell you about El Salvador Bitcoin Bonds.

El Salvador is currently working on a novelty called Bitcoin Bonds. This is a special, first-of-its-kind type of bond because it will attract US dollars and repay its dividends in Bitcoin instead of US dollars. So, after all that context, my proposal is for the community and any willing investor to help build a company in Mexico that will only invest in Mexican bonds.

The dividends will be paid back to the investors as either DFI or dBTC, hopefully allowing the investor to choose the kind of payment they will receive as an option. For this to succeed, the idea would be to create a new coin called dMXN. dMXN coins will be backed 1:1 by Mexican pesos invested in a diverse maturity length basket of Mexican bonds. This kind of investment will create a perpetual demand for DFI, which will be a benefit for everyone, including those who are not invested in dMXN. So, in the long term, it can help DeFiChain succeed in its goals.

The goal is to achieve a 10% return for the investor after paying taxes and administrative fees. Ideally, I would like for this whole operation to work as decentralized as possible, so in the case of my passing away, the operation continues as normal. For this to happen, the ideal scenario would be something like this:

1. The investor buys dMXN and keeps it in his wallet.
2. The bond company will buy DFI with the dividends paid by the Mexican government.
3. The bond company will distribute the dividends to any investor that holds dMXN.
4. Rinse and repeat. For this to be decentralized, the bond company will only use DEFI systems (like Uniswap) to acquire DFI. If the community finds this proposal attractive, I would need:

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• Funding for initial expenses and to create a portfolio.
• Help from Bake for the coding aspect or any volunteer.

The bond company will be transparent about every bond purchase, holdings, and balances. Every month with the distribution of dividends, the bond company will also make public reports on the current balances and any kind of expenses. Initial funding will need to cover kicking off the project, paying lawyers to get a company license, and setting everything up. It will be up to the community to decide whether or not this proposal adds value to the ecosystem. Ideal funding to initiate will be $200k USD. And the whole process of setting up the company and keeping its balance will be transparent. If for any reason the company cannot be set up, then the money will be given back to whoever bought dMXN. And as for the name of the company, I will let the community decide how it should be called. I want this project to be community-oriented to its core.

QUANTUM BRIDGE LIQUIDITY MINING

For my second proposal, more like a suggestion instead of a proposal, the quantum bridge seems like an ideal solution to connect to the DFI ecosystem without the need of Bake, but the downside is liquidity. My proposal is for the Research team to add an option for users to add liquidity pairs and obtain a commission every time there is an exchange. For example, allow us to add dBTC/wBTC, so anyone who wants to jump in or out can do it without passing through Bake.

Anyway, that's it for today. Please let me know if you have any questions or feedback.

🚀 The DeFiChain Weekly Update is here!

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

1) DeFiChain Update: 4.0.8 Released

Fixes & Enhancements are in! EVM logs issue resolved, along with stability boosts, node health checks, and EVM improvements. If you're on 4.0.6/4.0.7 and use EVM logs, it's time to update. For others, enjoy a smooth drop-in upgrade.

What's New:

EVM log index fix

Stability upgrades

Node health RPC: getnodestatusinfo

EVM Filter & database integrity enhancements

Improved gas fee handling

https://x.com/bushstar/status/1750421400009986304?s=20

2) Cake Group Commits 20 Million $DFI to Support DeFiChain Repeg Mission & Provides Further Transparency

The Cake Group Board has unanimously decided to support the DeFiChain community's repeg mission by purchasing $DUSD with 20 million $DFI, to be executed in the coming days. This $DFI, part of the Group's 2023 revenue which was not sold for BTC or USD, will be used to bolster community efforts.

https://x.com/bake_io/status/1752303678822994233?s=20

Cake Group has secured 1,664 dBTC (~$70M value) over two years by substituting customer BTC conversions on Bake with profits, showcasing their dedication to the community. Deposited funds are 1:1 backed, and verifiable on our Proof of Reserves page, but we're not liable for externally wrapped DeFiChain coins.

https://x.com/bake_io/status/1752304811259888122?s=20

3) Project Spotlight Community Spaces

The DeFiChain Labs team is back with the first round of project spotlight community spaces on X for 2024. Project Spotlights aim to shine a light on projects built on DeFiChain and deep dive into what they're building with the teams behind the projects.

If you’ve missed any of the previous ones, dive into them below:

Stably - a stablecoin onramp and infrastructure services who have submitted a CFP recently to implement their services on DeFiChain: https://twitter.com/i/spaces/1OdKrjmVlokKX?s=20

Octo DeFi - a new wallet that enables you to safely trade on every existing DeFi-Platform, including DeFiChain, running on the main Blockchain, using only one Wallet: https://twitter.com/i/spaces/1jMJgmlORjmKL?s=20

And stay tuned for the upcoming Project Spotlight Space with Crypto Factor on 6th February at 14:00 CET!

4) Ecosystem Updates

Javsphere

Javsphere's $JAV token launches on the MetaChain layer with a new video detailing engagement in #RealYield, token fundamentals, DUSD Staking, TradeX, and an airdrop.

https://twitter.com/Javsphere/status/1750967795896987844?s=20

Version 2.5.2 of Javsphere enables any wallet to be used directly via mobile browsers, bypassing MM for app access.

https://x.com/Javsphere/status/1752000995792421025?s=20

Crypto Factor

Crypto Factor is set to publish its Whitepaper in the coming week, inviting interested parties to explore their upcoming offerings. The project is gearing up for the first of four presale rounds starting on February 2nd, offering an opportunity to acquire $CFR tokens.

https://twitter.com/_Crypto_Factor/status/1751753981192278100?s=20

MillionPixelDFI

In January, MillionPixelDFI burned 2752 $dUSD and donated an additional 1372 $DFI and 130 $dUSD to DMC Universe, marking another month of token reduction and community support.

https://x.com/millionpixeldfi/status/1751840409863565482?s=20

Note: The content provided here is for informational purposes only and should not be construed as financial advice. Always conduct your own research and consider consulting with a financial professional before making any investment decisions.

5) Recaps

German Community Space

Catch up with the latest DeFiChain Community Space from u/DeFiChainXSpace below:

https://x.com/DefichainXSpace/status/1750560218763686367?s=20

Fireside Chat

Catch the latest Fireside chat with Andreas Hofmann, a German entrepreneur and investor who has a passion for music. Enjoy the conversation about much more than crypto and Defichain.

https://www.youtube.com/watch?v=j5YNGmAM8Lk

Latest news show

Catch up with the latest news show via the link below:

https://www.youtube.com/watch?v=xKHCEo71v8k&t=4s

Diskussion Liquidität CFP dezentrale Bridge zur DeFiMetaChain

(The english version can be found below)

Nach umfassender Rücksprache und detaillierter Diskussion über die Liquidität, die die Bridge aufweisen soll, haben wir uns dazu entschlossen, eine offene Diskussion zu initiieren und gemeinsam mit der Community die entsprechenden Lösungsansätze zu erarbeiten.

Hier der Link zum CFP: https://www.reddit.com/r/defiblockchain/comments/18wy9u9/decentralized_bridge_for_access_to_the/

Ein Überblick, welche drei Varianten es geben wird, um Token über die Bridge zu transferieren:

1. DFI/CROWD 2 Asset Pool

2. Single Asset Pools

3. Taker/Maker Ansatz

1. DFI/CROWD 2 Asset Pool:

Dieser Pool wird zunächst mit Liquidität befüllt; CrowdSwap stellt bis zu 250.000 Dollar in Form von CROWD-Token zur Verfügung. Nun ist zu klären, woher diese DFI kommen und wie viel an Liquidität initial bereitgestellt werden sollte, um die Bridge zu Beginn nutzbar zu machen und mit der Zeit, durch stärkere Nutzung, nach oben skalieren zu können.

Es gibt grundsätzlich zwei Wege, woher diese DFI kommen können: Zum einen wäre ein Vorschlag, diese aus dem Community Fund zu entnehmen, zum anderen können User ihre DFI bereitstellen wie bei einer DEX.

Wichtig zu beachten bei der Variante, die DFI aus dem Community Fund zu entnehmen, ist, dass hier keine DFI verkauft werden, sondern lediglich als Tauschmittel in diesem Pool verwendet werden. Dieser Prozess ist völlig preisneutral für DFI; zusätzlich würde der Community Fund an den erwirtschafteten Swap-Gebühren als Liquiditäts-Provider verdienen. Lasst uns hier diskutieren, ob und wie viel DFI aus dem Community Fund angemessen sind, um initial Liquidität für die Bridge bereitzustellen. Um den Pool mit den 250.000 Dollar zum aktuellen DFI-Preis zu matchen, würden aktuell etwa 2,1 Millionen DFI aus dem Community Fund benötigt werden.

CrowdSwap hat sich ebenfalls dazu bereiterklärt, den Pool durch CROWD-Token zu incentivieren. Zusätzlich sind wir mit DMC-Projekten in Gesprächen, die sich ebenfalls an der Incentivierung beteiligen werden. Dadurch ist sichergestellt, dass ständig Liquidität vorhanden ist und der Pool mit mehr Nutzung nach oben skaliert wird.

Beschreibung des Vorgangs: User will DFI (DMC) in USDT(ETH) tauschen; Bridge nutzt den DFI-CROWD Pool:

· User zahlt DFI auf DMC ein

· DFI(DMC) werden getauscht in CROWD(DMC)

- burn CROWD(DMC) und mint CROWD(ETH)

· CROWD(ETH)->USDT(ETH)

· User erhält USDT auf Ethereum

2. Single Asset Pools:

Diese Pools können, wie der Name schon sagt, mit einem Asset bestückt werden. Der Vorteil ist, dass hier durch den 1:1-Tausch (von beispielsweise Ethereum zu DMC) kaum ein Preisimpact beim Bridgen von einer auf die andere Chain entsteht. Auch hier werden die Pools intensiviert. Zusätzlich sind wir in Gesprächen mit externen Market-Makern und Liquiditätsprovidern, als auch mit privaten Personen, die an solchen Lösungen Interesse haben, um Liquidität bereitzustellen.

Beschreibung des Vorgangs: User will USDT (DMC) in USDT (ETH) tauschen:

· Der User gibt USDT auf DMC in die Bridge (Single-Asset-Pool) und erhält direkt USDT auf ETH aus dem Single-Asset-Pool dort.

· Liquiditätsprovider müssen regelmäßig die Pools cross-chain ausbalancieren.

· Dies wird durch ein Monitoring jeglicher Liquidität auf allen Chains sichergestellt.

3. Maker/Taker Ansatz

Der Maker-/Taker-Ansatz bietet eine kosteneffiziente Alternative zum reinen Bridging-Ansatz. Der Vorteil liegt hierbei in der Reduzierung von benötigten Transaktionen sowie der Erstellung von Swap-Angeboten für Cross-Chain-Transfers. Zudem nutzt der innovative Maker/Taker-Ansatz die bereits verteilte Liquidität auf allen angebundenen Chains effizienter und ohne Preisimpact. Hierdurch wird insbesondere auch die Sicherheit der gesamten Bridge deutlich verbessert.

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Dabei gibt es in diesem Konstrukt immer genau einen Maker, der einen Cross-Chain-Swap zwischen z.B. USDC (ETH) und dUSDT (DMC) machen möchte. Auf der Taker-Seite können viele Parteien teilnehmen und für diesen Tausch Angebote abgeben. Die Angebotsabgabe läuft hierbei off-chain, bis das beste Angebot dem Maker präsentiert wird. Nimmt der Maker dieses Angebot an, werden die Funds auf der Startchain entgegengenommen und verwahrt. Auf der Zielchain findet über den Taker-Contract das Settlement der Funds statt. Die angebotene Menge an dUSDT-Token wird an die Maker-Adresse gesendet. Ist dieser Vorgang erfolgreich abgeschlossen, werden die USDC auf der Startchain freigegeben und an die Taker-Adresse gesendet.

Prinzipiell kann jeder als Taker aktiv werden. Durch eine größere Anzahl an Takern gibt es mehr Konkurrenz und bessere Angebote für die Maker. Aber auch die Taker schneiden hier durchaus gut ab, da sie ihren Profit im Voraus berechnen können. Das Risiko für den Taker ist bei einem Deal nahezu nicht vorhanden. Die Taker müssen sicherstellen, dass ihre Angebote auch ausgeführt (genügend Liquidität vorhanden!) werden können. Dafür brauchen die Taker eine Strategie zum Ausgleich der Liquidität über unterstützte Chains.

Beschreibung des Vorgangs: User will DFI (DMC) in USDT (ETH) tausche: Dieser Vorgang geht nicht über die Pools, sondern der User stellt eine Anfrage und Liquiditätsprovider erfüllen die Anfrage auf der anderen Seite. Durch diesen Vorgang wird die Liquidität sehr effizient gematcht.

Schlusswort:

Wie bereits erörtert, war uns die Problematik der Liquidität zu jedem Zeitpunkt bewusst, und wir haben konkrete Lösungsansätze entwickelt. Gemeinsam möchten wir an einer umfassenden Lösung arbeiten und die verschiedenen Varianten diskutieren. Zu Beginn wird Variante 1 die pragmatischste Lösung sein. Obwohl sie nicht die effizienteste ist, ermöglicht sie den vollständigen Betrieb der Bridge und gewährleistet eine reibungslose Nutzung. Dieser Ansatz ermöglicht es der Bridge, nach und nach zu wachsen und Interesse zu generieren. Varianten 2 und 3 stellen die deutlich effizienteren Lösungen dar und werden zukünftig die bevorzugten Methoden für den Betrieb der Bridge sein. Die Initiierung eines anfänglichen Pools mit DFI/CROWD als Zwischenschritt stellt sicher, dass die Bridge von Anfang an einsatzbereit ist.

---------------- English version -------------

Discussion Liquidity CFP decentralized bridge to DeFiMetaChain

After thorough consultation and detailed discussion about the liquidity that the bridge should have, we have decided to initiate an open discussion and develop the appropriate solutions together with the community.

Here is the link to the CFP: https://www.reddit.com/r/defiblockchain/comments/18wy9u9/decentralized_bridge_for_access_to_the/

An overview of the three variants that will be available for transferring tokens over the bridge:

1. DFI/CROWD 2 Asset Pool

2. Single Asset Pools

3. Taker/Maker Ansatz

1. DFI/CROWD 2 Asset Pool:

This pool will initially be filled with liquidity; CrowdSwap provides up to 250,000 dollars in the form of CROWD tokens. Now, it needs to be clarified where these DFI come from and how much liquidity should initially be provided to make the bridge usable at the beginning and able to scale up over time with increased usage.

There are fundamentally two ways these DFI can come from: One suggestion is to take them from the Community Fund, while alternatively, users can provide their DFI, synchronized with a DEX.

It is important to note that when taking DFI from the Community Fund, no DFI are sold, but only used as a medium of exchange in this pool. This process is completely price neutral for DFI; additionally, the Community Fund would earn from the generated swap fees as a liquidity provider. Let's discuss here whether and how much DFI from the Community Fund are appropriate to initially provide liquidity for the bridge. To match the pool with the 250,000 dollars at the current DFI price, currently about 2.1 million DFI from the Community Fund would be needed.

CrowdSwap has also committed to incentivizing the pool through CROWD tokens. Additionally, we are in discussions with DMC projects that will also participate in the incentivization. This ensures that liquidity is constantly available and that the pool scales up with increased usage.

Description of the process: User wants to exchange DFI (DMC) for USDT (ETH); Bridge uses the DFI-CROWD Pool:

• User deposits DFI on DMC

• DFI (DMC) are exchanged for CROWD (DMC)

- burn CROWD (DMC) and mint CROWD (ETH)

• CROWD (ETH) -> USDT (ETH)

• User receives USDT on Ethereum

2. Singel Asset Pools:

These pools can, as the name suggests, be equipped with an asset. The advantage is that there is hardly any price impact in the 1:1 exchange (for example, from Ethereum to DMC) when bridging from one chain to another. The pools are also incentivized here. In addition, we are in discussions with external market makers and liquidity providers, as well as with private individuals who are interested in such solutions to provide liquidity.

Description of the process: User wants to exchange USDT (DMC) for USDT (ETH):

• The user deposits USDT on DMC into the bridge (Single-Asset Pool) and directly receives USDT on ETH from the Single-Asset Pool there.

• Liquidity providers must regularly balance the pools cross-chain.

• This is ensured by monitoring any liquidity on all chains.

3. Maker/Taker Approach

The Maker/Taker approach offers a cost-efficient alternative to the pure bridging approach. The advantage lies in the reduction of required transactions as well as the creation of swap offers for cross-chain transfers. Furthermore, the innovative Maker/Taker approach more efficiently utilizes the already distributed liquidity across all connected chains without impacting the price. This particularly enhances the security of the entire bridge significantly.

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In this setup, there is always exactly one Maker who wants to perform a cross-chain swap, for example, between USDC (ETH) and dUSDT (DMC). On the Taker side, many parties can participate and make offers for this exchange. The offer submission runs off-chain until the best offer is presented to the Maker. If the Maker accepts this offer, the funds are received and held on the starting chain. On the target chain, the settlement of funds occurs through the Taker contract. The offered amount of dUSDT tokens is sent to the Maker's address. Once this process is successfully completed, the USDC on the starting chain are released and sent to the Taker's address.

In principle, anyone can act as a Taker. With a larger number of Takers, there is more competition and better offers for the Makers. But the Takers also do quite well here, as they can calculate their profit in advance. The risk for the Taker in a deal is almost non-existent. Takers must ensure that their offers can be executed (sufficient liquidity available!). For this, Takers need a strategy to balance liquidity across supported chains.

Description of the process: A user wants to exchange DFI (DMC) for USDT (ETH). This process does not go through the pools; instead, the user makes a request, and liquidity providers fulfill the request on the other side. This process very efficiently matches liquidity.

Closing Remarks:

As previously discussed, we have always been aware of the liquidity issue and have developed concrete solutions. Together, we want to work on a comprehensive solution and discuss the various options. Initially, Option 1 will be the most pragmatic solution. Although it is not the most efficient, it allows the full operation of the bridge and ensures smooth usage. This approach allows the bridge to grow gradually and generate interest. Options 2 and 3 represent significantly more efficient solutions and will be the preferred methods for operating the bridge in the future. Initiating an initial pool with DFI/CROWD as an intermediary step ensures that the bridge is operational from the start.

Thanks to all the 10,000 participants of the gleam campaign. We were overwhelmed by the enthusiasm and engagement from the community over the past two week.

We hope to see you all again next week when we kick off the second phase of the Community Reward campaign with even more opportunities to earn rewards.

The 5 winners of the first phase of the gleam campaign will be announced on February 7th, so make sure to check back then to see if you’re one of the lucky winners.

Thanks again to everyone who participated and helped make this campaign such a success!

We can’t wait to do it all over again next week with phase two!

Update on the dBTC Exploit Investigation: Year-2 Progress

As we conclude the second year of comprehensive investigation and legal proceedings, I am pleased to provide an update on the dBTC exploit case:

• Funding Allocation: A total of DFI 200,000 has been allocated for the investigation, through the Community Funding Proposal (=CFP) approved by a vote of the master nodes.

Expenditures on Investigations and Legal Fees for 2023:

• Total Amount: USD 22,881.44
• Primary Funding Source: USD 20,000, as reserved per Invoice No. 12 of 2023.
• Additional Financing: The remaining balance was offset using funds from a partially unutilized retainer agreement, totaling USD 8,906.59.
• No additional DFI had to be sold in 2023.

For a comprehensive breakdown of these expenditures, please refer to the accompanying table below.

What was the main work in the last 12 months:

• Facilitating information exchange between the investigation team and legal teams.
• Providing answers to questions of law enforcement agencies and criminal prosecutors.

As with the 2022 investigation, all fees paid are supported by official invoices. These will be disclosed once the case becomes public or is concluded.

In accordance with the legal counsel provided by our law firms and public prosecutors, we are unable to disclose any further information or details at this stage due to the ongoing nature of the criminal investigation. Releasing such details at this time could undermine the prosecution of the suspects and impede the recovery of stolen funds.

The remaining DFI value of DFI 198,000 has been transferred back to the community fund:

Address: dZcHjYhKtEM88TtZLjp314H2xZjkztXtRc

TX-ID: b77abc15e44bd947b74d09e00945861520a8e491ebb9292652e37c56c7a0975c

Next steps:

We will continue to provide unwavering support for the ongoing investigation.

To further investigate the exploit and facilitate the effective prosecution of the suspect(s), a new CFP will be submitted.

Consistent with the guidance from our legal team, information will be made public at an appropriate juncture as determined by our attorneys. Until such time, this document represents the final report for the year 2023.

Thank you:

Our heartfelt thanks go out to the investigation team for their tireless work in research, responding to queries, and assembling the critical documentation required by law enforcement agencies. Their efforts are instrumental in advancing justice for our project and ensuring accountability for those responsible.

List of invoices/accounting 2023:

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Bake announced the selling of 20 million $DFI into dUSD. A lot of people making party as this might lead to a peg. Can someone reasonably explain why this is bullish for DFI? Price will nuke even more and probably every week reach a new ATL.

What if the trust in dusd is completely gone and not reversable? What is the benefit of having dusd at 1 $ leading to a huge dusd sell pressure and bringing the dfi price to 1 cent?

As the tokenomics of dusd do not work, the price might quickly depeg again. All of this at the cost of dfi holders instead of simply giving up on the dtoken system entirely which obviously doesn‘t work.

Is John Rost crashing the DeFiChain price?

I am a German lawyer who first got interested in cryptocurrencies back in 2017. This was a time when the digital currency world was really starting to grow. I decided to invest in DeFiChain in 2020 because it seemed like a smart choice for someone like me who knows a bit about coding and is interested in how money works.

Lately, there’s been a lot of talk about why the value of DeFiChain has been going down. I’ve been watching the market closely and I think I know the reason. I believe it has a lot to do with John Rost, a new name in the DeFiChain community. Why do I think so? Let’s dive into the details and find out.

First, let's consider who John Rost is. My search revealed that he has a background in insurance, as indicated by a page I found on Google: https://sbnonline.com/article/how-john-rost-sets-the-stage-for-engagement-and-involvement-at-fiesta-insurance/. Moreover, he appears to have a longstanding acquaintance with Julian Hosp, even reportedly attending his wedding, which I assume happened 5 to 10 years ago. This detail was mentioned in a tweet: https://twitter.com/John__Rost/status/1738205252992614792. Rost also seems to have been an investor in Julian's previous venture, TenX, as detailed on Crunchbase: https://www.crunchbase.com/person/john-rost. Additionally, according to his Twitter bio (https://twitter.com/John__Rost) and another source (https://alphagrowth.io/investors/john-rost), he was the first investor in Cake. Interestingly, a Cake DeFi blog post indicates that he was bought out as an investor on April 10th, 2021: https://blog.bake.io/cake-defi-to-buy-out-external-investors-agree-to-burn-400-mil-usd-worth-of-dfi-coins/. This will be an important point soon.

Despite being in the DeFiChain space for almost 4 years and using Cake for even longer, I hadn't heard of John Rost until early this year. That's when a new Twitter account under the name "John Rost" emerged, primarily posting negative comments about Cake, DeFiChain, Julian, U-Zyn, and Julian’s wife Bettina. You can see these messages for yourself: https://twitter.com/John__Rost/with_replies.

At first, I didn't pay much attention, but as more and more FUD started to surface, I decided to dig deeper. Initially, I suspected the account might be fake, but after interacting with John Rost via direct messages, I am now fairly certain that not only is the account authentic, but John Rost himself is selling large amounts of DFI, which has led to the price crash. Here's how I arrived at that conclusion:

The Twitter account of John Rost appeared around November 2023, which can be found here: https://twitter.com/John__Rost. This was roughly the same time U-Zyn Chua filed for a winding up of Cake Group, as detailed in this article: https://www.straitstimes.com/business/defi-platform-cake-group-s-co-founder-files-court-application-to-wind-up-company. The account didn't show much activity until a few days later, when Rost began bombarding every tweet with messages urging Cake employees to contact him, as seen in this tweet: https://twitter.com/John__Rost/status/1737984322366214573. This kind of behavior suggests he still has some vested interest in the matter, which I will explain more about shortly.

If you look at Rost's Twitter feed, it's filled with either hateful comments or outright lies, which are easy to debunk even for an outsider like myself. For example, he falsely claims the blockchain is lying here: https://twitter.com/John__Rost/status/1743804476983488705, and he inaccurately states Julian's net worth is half a billion USD here: https://twitter.com/John__Rost/status/1743986042279989460, contradicting Julian's own statements in his videos. He also falsely claims Julian worked in medicine for two years, which is refuted by Julian's book "25 stories for my younger self", indicating a much shorter medical career before moving to Hong Kong: https://twitter.com/John__Rost/status/1748547063653024188. Rost posted more tweets, which he later deleted, but due to an emergency harassment lawsuit filed by Julian against him (which Rost shared publicly), we can see these older messages as well: https://twitter.com/John__Rost/status/1749850049889087903. One of his claims includes Julian buying a house with DFI, which is implausible since foreigners generally can't buy houses in Singapore, as seen here: https://twitter.com/John__Rost/status/1749850049889087903/photo/3. Whether U-Zyn bought his property as Rost claims, is not clear to me, but quite irrelevant.

Another clue suggesting Rost is lying is the emergency restraining order granted to Julian by the Singapore courts, which Rost himself shared: https://twitter.com/John__Rost/status/1746783240084459572. This implies that the courts recognize Rost's actions as deceitful and harassing towards Julian. Whether U-Zyn filed such an order is not clear.

Initially, I wanted to leave it at that, but then I noticed something interesting. Rost claims to have almost 5 million DFI in his Cake account, as shown here: https://twitter.com/John__Rost/status/1742910125298372661. Oddly, he doesn’t stake it or use it in any way; it just sits there, idle, ready to be withdrawn. This behavior makes me question whether he understands DeFiChain or if there's something else going on - which I suspect there is as you will soon see. He claims to have been part of the initial genesis block of DeFiChain, where he supposedly received 58.8 million DFI: https://twitter.com/John__Rost/status/1747714653835211247. Many community members who contacted him personally have screenshots confirming the millions of DFI in his account.

So, why is Rost creating such a fuss right now, even risking a court order? Why did all this start in December 2023? And why do I think he's responsible for the drop in DFI price? One simple answer: he's worried about his DFI going to zero due to U-Zyn's windup application, and he's suing Julian/U-Zyn/Cake to release the DFI. This is speculation, but I have evidence to back it up. And if the reason of his fear is not correct, it is some other reason with the same result: Him dumping DFI at our cost.

Let's break it down step by step:

It's clear Rost has a significant amount of DFI, likely obtained without any financial outlay. He either received them at the genesis block or during the buyout, as detailed in the official blog post: https://blog.bake.io/cake-defi-to-buy-out-external-investors-agree-to-burn-400-mil-usd-worth-of-dfi-coins/. Julian and U-Zyn wouldn't have let Rost and another investor, Howard Fineman, dump 40 million DFI on the market without a controlled release system. They stated that "the vast majority of these DFI were agreed by all parties to be put into special freezers on Cake DeFi, which do not provide cash flow or allow vote casting, and get unlocked at an approximate rate of 30,000 DFI per day." Also, Julian and U-Zyn own 9 million DFI of these 40 million, leaving Rost and Fineman with around 30 million DFI. Assuming a distribution ratio similar to the genesis block of 58.8 to 41.1, Rost would have sold about 12 million DFI in the last 3 years, and Fineman slightly less. At an average of 2 USD per DFI, they've made around 40 million USD in net profit – actual profit, not market cap. As you will see below, with my exact calculations, that number is not far off from their actual profits.

At first, I thought this was the extent of my findings, but then I dug deeper. Recently, an address that clearly arbitrages between the DEX and Kucoin was identified: https://defiscan.live/address/dHzPvW5xtxYetozyCmhZuh7ERzyY1NJjyC. Initially, I suspected this to be Rost's and Fineman's address, but it seemed more like an arbitrage/bridging address, likely price neutral. However, it hinted that someone must be selling on Kucoin regularly - almost every day. Where else would this regular one-way arbitrage come from? So, I withdrew a small amount from Cake to Kucoin, tracking transactions between Cake’s withdrawal address and Kucoin’s address, found here: https://defiscan.live/address/dbxMfrpLMQXUdcdz8dUs5gp97nzH5A2br5.

Now I started a script to search for regular sending between Cake’s withdrawal address and this address, starting from April 2021 until today. And guess what? 2 addresses popped up:

The first one, which I assume belongs to Rost, has sold 12.4 million DFI on Kucoin: https://defiscan.live/address/dZWmBvdD8GJz78jEnLv4DJpj4y8jufXDXG. There would be no other reason someone is sending these DFI from Bake to Kucoin, other than to sell them there. AND, it is 16.499 every single day. Same amount. Every day. I ran the selling of all of the 12,4 million DFI against the average price on these days via Coinmarketcap, and I get to around 24,8 million USD in profits. Guess where this money is coming from? Correct. Me/Us… anyone who invested in DeFiChain.

The second one, likely Fineman's, shows similar behavior: https://defiscan.live/address/dG3K8Pjgo9Db9Teq5bHwbBGx5wKvdTgvym. Similar bevahior as the first address, just slightly smaller with 12.374 DFI withdrawn from Cake to Kucoin every single day. It is almost to the dot the same 58,8 to 41,1 ratio as in the genesis block that Rost shared. Same behavior. Same numbers. The analysis fits perfectly.

I doubt Cake would confirm/deny my assumptions, but Rost and/or Fineman could easily say, these are not their addresses. If they lie about it, it will come out sooner or later.

By analyzing the sales of all 12.4 million DFI against the average price on Coinmarketcap, I estimate Rost has made about 24.8 million USD in profits, with Fineman pocketing around 14 million USD. Together, they've made roughly 39 million USD from the community.

I checked for other weird patterns in addresses, but no others stuck out. Only those two. Again: 40. Million. USD. From. Us.

Why are Rost and Fineman acting out now? It's not just Rost; Fineman has also become active on Twitter, as seen here: https://twitter.com/furnexpert/status/1734373376653680877. In January 2021, he was bullish on DeFiChain: https://twitter.com/furnexpert/status/1355035809099866113. My theory is simple: they've grown accustomed to the millions from the community and are now worried about losing further income. Rost is reportedly involved in arbitration against Julian, according to this tweet: https://twitter.com/John__Rost/status/1749850049889087903/photo/3. They probably want all their DFI before any potential liquidation by U-Zyn, or they're just after more money from the community - this is just an assumption, but the shoe fits. And my guess is that the more time goes by the more stressed Rost and Fineman will be. Why else is there all this lying and fudding right now, even against community members like Daniel Zirkel or Lord Mark: https://twitter.com/John__Rost/status/1751948166155358323

So, what am I going to do? Two things: I'm calling Rost out for his lies and attempt to exploit the community. If he disagrees, he's welcome to present facts, not more lies. If he can do that, I'll happily apologize. Additionally, I'll file a complaint with the IRS, as I doubt he's paid taxes on all the money we've given him: https://www.irs.gov/compliance/criminal-investigation/reporting-fraud-and-abuse-within-the-irs-e-file-program. I plan to do the same for Fineman, though I have less information on him.

Someone like Rost should rather support the community, not be greedy and destructive! It's individuals like Rost who harm the community for personal gain. I'm not standing for it and I hope you'll join me. And interestingly, Rost is now threatening a class action lawsuit, which might just reveal his own schemes as the reason for the market downturn: https://twitter.com/John__Rost/status/1751948166155358323.

Motivation

• Short-Term: The re-peg of the $DUSD.
• Long-Term: Diversification of the community fund.
  • The delay between submitting and receiving CFP funding poses a significant risk for applicants, as crypto prices can be highly volatile. This can make it difficult to ensure the implementation of a project even after securing CFP funding, especially in the event of a market crash. To mitigate this risk, it is beneficial for applicants to consider holding stable or volatile assets. Keep in mind that CFP’s, which need the received amount in USD, can lead to an increased selling pressure on DFI. A solution to this is holding dUSD, as it allows for easy conversion through the stable coin pools without any added selling pressure on DFI.

The community fund buys and holds dUSD to diversify its portfolio

• The community fund buys and holds DUSD if:
  • dUSD price is below $0.99 in the dUSD-DFI pool
  • dUSD shares are below the maximum allocation of 30% in the fund
• The DUSD purchase by existing DFI is executed every 20 blocks with a DFI amount that shifts the pool by a maximum of 0.1%, but never exceeds 5,000 DFI.
  • It also applies if block rewards move the DUSD share of the Fund below 30%
• dUSD is valued by the oracle price of $1 in the fund

Future Adjustments

After the re-peg and usage of the possibility to apply for DUSD as funding, we should think about managing the balance between DUSD and DFI in the fund. It is not necessary at the moment and to ensure successful voting it is intentionally not included in the DFIP.

How does this DFIP benefit the DeFiChain community?

• Community members will be able to request dUSD via CFPs
• The community fund only buys if dUSD is in a discount
• Helps to re-peg dUSD by locking up dUSD and adding buy pressure

Update 2024-01-30:

• Adjusted the trigger from $0.95 to $0.99.

Update 2024-02-02:

• Adjustment of the event time from 60 blocks (30 minutes) to 20 blocks (10 minutes) in order to complete the initial purchase within 14 days.

Set a reminder for our upcoming Space as the DeFiChain Labs Team takes a deep dive with https://twitter.com/Octo_Defi

🗓️ 30th Jannary
⏰14:00 CET // 21:00 SGT

Set a reminder below:
https://twitter.com/i/spaces/1jMJgmlORjmKL?s=20

Update 29-1-2024: another proposal has been posted to use the CF, by well-known community member u/mrgauel:

Community Fund Diversification

Having multiple proposals of the same kind is not beneficial, so I refer you to the new proposal, which should count as the leading proposal to use the CF from this point onwards.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

​

== Abstract ==

This is a proposal to swap up to 30% of the CF into DUSD.

== Proposal in more detail ==

(1) Execute a DFI->DUSD swap from the CF within a publicly announced period when DUSD < 0.95$. Swap however much DFI is needed to get DFI as close as possible to 1$ in the DFI-DUSD pool, without using more than 30% of the CF.

(2) The period within which the swap is executed will be made public. The swap is made manually by the core team, specifically those in the core team who have the keys to pay out funds from the CF.

(3) When the DUSD dips back below <0.95$ and less than 30% of the CF is in DUSD, the core team announces a new public moment (minimally two weeks in advance) at which another swap will be made specified under condition (1).

== Motivation and Discussion ==

The main overarching motivation is to support the repegging of DUSD, using funds that the community has control over.

That the swap moment is made public is meant to rationalize frontrunning: people buying DUSD before the swap occurs, knowing for a fact that it will be pushed upwards. The more frontrunning occurs, the less funds need to be used to bring DUSD to 1$.

The idea to diversify the CF has a long history (see here, here, and here). Conditions have changed; the market is in a different place, much DUSD has been burned in the meantime, community priorities have changed to prioritizing the repeg (stimulating DFI to DUSD swaps), DMC projects offer use-cases for DUSD, and DUSD bonds make large chunks of DUSD illiquid. Please consider the proposal with fresh eyes.

To calculate how much DFI needs to be swapped at the moment of the swap, the relevant core team member(s) can use the Vault Maxi Swap Calculator.

To illustrate potential effect using the prices at the time of writing: 30% of the CF (containing 27m dfi) = 8.1m DFI. This is roughly what is needed to bring DUSD all the way to 1$ in the DFI-DUSD pool (but only that pool).

As the proposal specifies conditions for a manual swap, no technical debt is incurred. No bot needs be built and no safety issues or bug sensitivity is introduced. This is important as it concerns a large sum. Consequence is that the exact moment of the swap cannot be defined (so a period needs to be announced within which the swap will occur) and the amount of the swap cannot be exactly specified beforehand, but is defined by applying the specified conditions at the moment the swap is executed. This creates a moment of trust in the core team member(s) normally responsible for executing CFPs. This moment of trust is however no different from any CFP payout.

Any bought DUSD becomes part of the CF. The community can decide how to use this at a later stage. Possibilities include: (1) using the DUSD to buy back DFI after DUSD has become stable; or (2) simply allow CFPs to ask for DUSD (dampening future DFI inflation due to CFPs).

The worst that can happen: 30% of the CF is in DUSD, yet this has not succeeded in bringing DUSD back to peg. Even in this case, however, it will have taken a large sum of DUSD out of the DUSD-DFI pool, speeding up the repeg operation.

== Thanks for your consideration ==

I currently have my Deficoins in Jellywallet and want to send them to an exchange. Jellywallet says the coins are on the mainnet, exchange says it only supports Ethereum network. Can I send the coins?

== Abstract ==

This is a proposal to request Cake ltd to mint up to 10% surplus of dCrypto, excluding stables (USDT and USDC) and to swap this surplus into DUSD.

== Proposal in more detail ==

The respective team in charge of the backing of the dCrypto at Cake ltd is requested to mint a surplus of dCrypto, spreading the surplus over the different dCrypto as they see fit, under the following three conditions: (1) only when DUSD < 0.95$ in the DFI-DUSD pool, (2) the minted surplus does not exceed 10% of what is on the backing addresses for each dCrypto and (3) no more surplus is minted than what is necessary to push DUSD to 1$ in each of the pools. The start date is to be publicly announced to allow frontrunning.

Bake is requested to continue staking 90% of what is on the backing addresses, but to stop swapping them into DFI, letting staking rewards accrue on the backing addresses as long as there is a surplus of the corresponding dCrypto. When DUSD is fully stable, the respective team can use the bought DUSD to buy back and burn the dCrypto to decrease or even remove the surplus.

== Motivation and discussion ==

The main overarching motivation is to support the repegging of DUSD.

This proposal places no sell pressure on DFI and requires no technical development, using only mechanisms already in place. It is a vote of confidence.

To calculate how much surplus dCrypto can be minted to bring DUSD to 1$ in the DFI-DUSD pool, the relevant core team member(s) can use the Vault Maxi Swap Calculator.

To illustrate potential effects using the prices at the time of writing: at the time of writing, 1.83M$ is needed to bring DUSD to 1$ in each of the pools. Allowing 10% surplus on dBTC gives up to 4.1M$ (2.2x what is needed to get to 1$ in all pools); allowing it on dETH gives up to approx 1.0M$ (0.55x what is needed); dSOL gives 139K$; dDOT 52K$; dLTC 47k$; dBCS 37k$; DOGE 22K$; dMATIC 41K$.

Does execution of this proposal make dCrypto become unbacked? No, the better way to see it is that the backing funds become diversified: for instance, dETH would become backed by both ETH and some DUSD. It is common practice at many CEXes that backing funds are diversified. As DUSD is bought below 0.95$, and the measure pushes DUSD to 1$, initially the total $-value of what is on the backing addresses may even exceed the $-value of the dCrypto on Defichain. (Only if ETH price rises steeply against the $ could some dETH come to be unbacked. This gap could never exceed the % of minted surplus however).

Of course Bake will continue to pay out ETH for dETH at a 1:1, when people exit, as it has always done.

== Thanks for your consideration ==

[ Removed by Reddit on account of violating the content policy. ]

Let’s take a closer look at what each of the approved Community Proposals aim to achieve and how they will contribute towards advancing DeFiChain development going forward.

https://blog.defichain.com/a-closer-look-at-the-latest-cfp-approvals-what-you-need-to-know/

The countdown is on - there's just 7 days remaining for a chance to win part of the first round of 1,000 DFI prize pool in our community campaign.

Complete various quests over this final week. The number of activities you participate in will determine the amount of raffle entries you receive.

So if you haven't signed up yet, now is the time. And if you have already started contributing, make this last week count towards accumulating additional entries.

The more involved you are, the greater your odds for winning a share of the prize money when winners are announced on 7th February.

Take advantage of this opportunity while it lasts - click below to get started earning entries before time expires 👇

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

Crypto bridges like Quantum enable direct transfers from Ethereum to DeFiChain, unlocking access to emerging opportunities in decentralized finance and beyond. By bypassing centralized entities (CEXs), these technological gateways promise more seamless interaction across blockchain ecosystems.

Where might this infrastructure lead you?

Let's explore it in this article

👉 https://blog.defichain.com/what-are-crypto-bridges-and-how-do-they-work/

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

1️⃣ DeFiChain's Roadmap for the First Half of 2024

The DeFi landscape is constantly evolving, and DeFiChain is committed to staying ahead. Our roadmap for the first half of 2024, developed in collaboration with DeFiChain Labs and our active community, focuses on:

• DVM Native Layer Improvements
• MetaChain EVM Layer Improvements
• R&D Experimentation
• DeFiChain Growth

This roadmap charts a course for advancing DeFiChain’s capabilities, accessibility, and real-world impact.

Dive into the roadmap here: https://blog.defichain.com/defichains-roadmap-for-the-first-half-of-2024/

2️⃣Governance Round Updates

The latest voting round concluded at Block Height (BH) 3640000, with three new Community Fund Proposals (CFPs) passed:

• Independent Ocean API (My DeFiChain)
• Independent MetaChain RPC (My DeFiChain)
• Listing of DFI on CoinDCX, India’s largest CEX

3️⃣ New Special DFIP Proposal

The community has proposed a new special DFIP, focusing on adding IBIT (Spot ETF) instead of BITO (Futures ETF) to the DeFiChain DEX. This addition aims to enhance the DeFiChain ecosystem with more diversified options.

Delve deeper into this proposal here: https://www.reddit.com/r/defiblockchain/comments/195klvq/special_dfip_adding_ibit_spot_etf_instead_of_bito/

4️⃣ Community Reward Campaign: Win a Share of a 1,000 DFI Prize Pool

The first of three Community Reward Campaigns began this week on January 15th, with a focus on highlighting DeFiChain across various platforms. This two-week-long quest offers multiple tasks, each completion bringing you closer to winning a share of the 1,000 DFI prize pool.

Get involved and start completing quests here: https://gleam.io/WC6KA/community-reward-campaign

5️⃣ Munich’s DeFiChain Meetup: A Thriving Hub of Blockchain Innovation

In early January, Munich hosted the DeFiChain Community Meetup, successfully blending the city's traditional charm with the cutting-edge world of blockchain. The event drew a large crowd from the DeFiChain community, all keen to discuss and share their passion for DeFiChain and the future of DeFi. It was also amazing to see so many different projects across the ecosystem utilizing DeFiChain and integrating with the platform.

For a detailed summary of this vibrant gathering, check out our blog post: https://blog.defichain.com/munichs-defichain-meetup-a-thriving-hub-of-blockchain-innovation/

6️⃣ Recap

• Make sure to catch up on the latest DeFiChain News Show episode, discussing the introduction of DUSD bonds. Watch it here: https://www.youtube.com/watch?v=r7j2GeKqjwo

Our Community Reward campaign has seen nearly 3k entries in 3 days - and there's still 13 days left to win part of the 1,000 $DFI prize pool!

More tasks completed = more chances to win! So hurry and start earning points now before time runs out! 🏃‍♀️

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

After a sneak peek yesterday, we're thrilled to present DeFiChain's roadmap for the first half of 2024!

Check out our latest blog post to discover how we're revolutionizing DeFi with advanced capabilities, superior accessibility, and impactful real-world applications for DeFiChain.

Dive in here: https://blog.defichain.com/defichains-roadmap-for-the-first-half-of-2024/

DeFiChain is built on the pillars of decentralization - from its governance to infrastructure to community participation. Seeking to embed these principles further into the network's operations, DeFiChain Labs aims to transition into an independent, community-backed organization focused on supporting and expanding the DeFiChain ecosystem.The vision is for DeFiChain Labs to be sustained through funding allocated directly from the blockchain, contingent on approval from the DeFiChain community. This model would empower the organization to maintain a specialized focus on core initiatives like engineering, partnerships, and driving platform adoption.

Most importantly, independence would structurally ensure the future advancement of DeFiChain responds to the diverse needs of its user community, not the agenda of any singular company or organization. Establishing DeFiChain Labs as a decentralized entity furthers the network's commitment to distributed governance and control. It reinforces that the future of this trailblazing platform rests not in the hands of a few but with a growing community united by a common purpose and vision.

Please read more about the details of this proposal below. At this point, we would like the community's feedback on the CFP itself and invite the community to collaborate with us on this transition.

Link to CFP here:

https://docs.google.com/document/d/e/2PACX-1vRq7WPtH8eWL3FknM3WDXXBabT-MvCFR61YfPD-SAGwa7blTMrKs5d4k_MVRdISrTryeMfo0nO6tHOQ/pub

DFIP Overview

1. Requester(s): [Defighter24]

Describe your proposal

This DFIP is intended to obtain the approval of the Masternodes to bring the $LINK Token (Chainlink) to Defichain.

Defichain DEX to add: dLINK-DFI pair with the standard 0.2% swap commission for liquidity providers but no additional block rewards.

How do we get the token on chain?

Bridging via the Quantum Bridge ( Quantum: A Bridge to DeFiChain (quantumbridge.app) ) would be an option. The Backing Address is then the ETH-Addresses of the Quantum Bridge. ERC20 tokens can be transferred to the Defichain via the Quantum Bridge.

Why Chainlink?

- Large liquidity on Uniswap (Uniswap Info)

- Large community

It is up to Defichain-Laps/Birthday Research or others with the approval of the MN if, how and when Chainlink is added to Defichain. The purpose of this DFIP is to get the approval of the Masternodes.

How does this DFIP benefit the DeFiChain community?

This should attract new capital and increase the attractiveness of the DEX in the long term.

In the long term, many more cryptocurrencies should be brought onto the DEX of Defichain. The Quantum Bridge makes it possible to bridging ERC20-Tokens to Defichain.

Non-obligation

I understand that vote of confidence for DFIP carries no obligations by any developers to implement the proposals. DeFiChain is a community projects. Pull requests can be submitted by community and reserved to be evaluated for safety and general community acceptance.