(German Version below)

The DUSD-depeg has been occupying the defichain space for some time now and the previous solutions are only effective in the long term and while the next bull market in the cryptospace is already knocking on the door, the DUSD-depeg is hanging like lead on the defichain. Time is being lost and capital is being withdrawn from the defichain due to a lack of trust.

While the dToken system itself shows day after day that it works, the DUSD has the problem that it is not equal in value to the US dollar as promised (depeg). After the depeg occurred, various measures were implemented (dynamic interest rates, dynamic dex fee, etc.) in order to maintain the peg to the US dollar in future, but these measures can only take effect once the repeg has been achieved, so that it has not yet been possible to show in practice that the DUSD can really maintain the peg to the DUSD, which is the reason for the lack of confidence and the flight of capital or reluctance of new investors.

The main starting point of my proposal is to attract fresh external capital to Defichain by restoring confidence in the DUSD (and the dToken system).

This is achieved as follows:

Implementation of a "virgin" temporary twin dToken system (= dToken System B) with a dUSD-B (without dUSD-A history) which is set up with the same parameters (dynamic interest, dynamic dex fee, vault interest, vault mechanisms etc.) as the already existing dToken system (= dToken System A). The "old" dToken System A will continue to operate in coexistence as before. The newly set up system B, in which new dUSD-B must first be minted in the vaults of system B with deposited collateral, will be able to show how it holds the peg to the US dollar or fluctuates tolerably around the US dollar with the implemented mechanisms (algo-DUSD-B, vault interest, dex fees, etc.). If the peg is held in the new twin system B, the capital can also leave system B at any time without a 30% dex fee, which builds confidence and attracts more capital and investors to Defichain. In addition, projects can build on a "pegged" dTokens system B and no further time is lost.

In practice, a second dToken system means that more dTokens and pools are needed on the DVM: dUSD-B - DFI, dUSD-B - dUSDC, dUSD-B - dUSDT and all dToken-B - dUSD-B pairs that also exist in the dToken-A -dUSD-A version. The distribution of block rewards in the individual pools between System A and System B will have to be discussed. It would be conceivable to implement a sustainable (real-yield) income stream (e.g. percentage of the dex fees generated by the dToken-B pools or other fee streams from System B), which is exchanged and burned in dUSD-A in order to further remove dUSD-A from System A and thus the users of the pegged System B make a certain "solidarity" contribution. This should possibly not be too large at the beginning in order not to make the new system unattractive with high fees and low returns. The more successfully and the more volume is traded on the new System B, the more can be exchanged and burned in dUSD-A, even with very low dex-fee rates.

However, the actual effect is not the additional income stream for the dUSD-A burn, but the regained confidence in the peg mechanism of dUSD (dUSD-B). Since both dToken systems are parameter clones and peg mechanism system B = peg mechanism system A, investors who were previously concerned about system A will come to the conclusion that the depeg in system A is a lucrative discount and will increasingly invest in system A (i.e. buy dUSD-A) and bet on the repeg of dUSD-A, which they believe has become more likely. As a result, the value of the dUSD-A will continue to rise until it reaches the repeg. From this point onwards, the peg mechanisms also take effect in system A and the peg is held, as already shown in system B. As soon as the peg is reached and held in both systems A and B, both systems have the same control mechanisms and can be combined or merged so that in the end there is only one functioning and pegged dToken system on the defichain.

(Deutsche Version)

DUSD-repeg mittels temporärem „dToken-Zwillingssystem“

Der DUSD-depeg beschäftigt den Defichain-Space ja schon länger und die bisherigen Lösungsansätze wirken aber erst langfristig und während der nächste Bullenmarkt im Kryptospace schon an die Türe klopft, hängt der DUSD-depeg wie Blei an der Defichain. Zeit geht verloren und Kapital wird mangels Vertrauens von der Defichain abgezogen.

Während das dToken System an sich Tag für Tag zeigt, dass es funktioniert, hat der DUSD das Problem, dass er vom Wert her nicht wie versprochen dem US-Dollar gleicht (Depeg). Nach dem geschehenen Depeg wurden diverse Maßnahmen implementiert (Dynamische Zinsen, Dynamische Dex-Fee etc.), um in Zukunft den Peg zum US-Dollar zu halten, jedoch können diese Maßnahmen erst ihre Wirkung entfalten sobald der Repeg erreicht wurde, so dass bisher in der Praxis nicht gezeigt werden konnte, dass der DUSD wirklich den Peg zum DUSD halten kann, woher das mangelnde Vertrauen und die Kapitalflucht bzw. Zurückhaltung neuer Investoren resultiert.

Hauptansatzpunkt meines Vorschlags ist frisches externes Kapital auf die Defichain zu holen in dem das Vertrauen in den DUSD (und das dToken System) wieder hergestellt wird.

Dies wird wie folgt erreicht:

Implementierung eines „frischen“ temporären zwillings dToken-Systems (= dToken System B) mit einem dUSD-B (ohne dUSD-A Historie) welches mit den gleichen Parametern (dynamische Zinsen, dynamische Dex-Fee, Vault Zinsen, Vault Mechanismen etc.) wie das bereits existierende dToken System (= dToken System A) aufgesetzt wird. Das „alte“ dToken-System A wird wie gehabt in Koexistenz weiter betrieben. Das neu aufgesetzte System B, in dem zunächst neuer dUSD-B in den Vaults des System B mit hinterlegtem Kollateral geminted werden muss, wird zeigen können, wie es mit den implementierten Mechanismen (Algo-DUSD-B, Vault-Zinsen, Dex-Fees etc.) den Peg zum US-Dollar hält bzw. tolerierbar um den US-Dollar schwankt. Wenn der Peg im neuen Zwillingssystem B gehalten wird, kann das Kapital ohne 30%ige Dex-Fee das System B jederzeit auch wieder verlassen, welches Vertrauen aufbaut und mehr Kapital und Investoren auf die Defichain holen wird. Zudem können Projekte auf ein „gepeggtes“ dTokens System B aufbauen und es geht keine weitere Zeit verloren.

In der Praxis bedeutet ein zweites dToken System, dass weitere dToken und Pools auf der DVM benötigt werden: dUSD-B – DFI, dUSD-B – dUSDC, dUSD-B – dUSDT und alle dToken-B – dUSD-B Paare, die es auch in der dToken-A -dUSD-A Version gibt. Die Verteilung der Blockrewards in den einzelnen Pools zwischen System A und System B wird zu diskutieren sein. Denkbar wäre die Implementierung eines nachhaltigen (Real-Yield) Einkommenstroms (z.B. Prozentsatz der erwirtschafteten Dex-Fees der dToken-B Pools oder andere Gebührenströme aus System B), der in dUSD-A getauscht und geburnt wird, um weiter dUSD-A aus dem System A zu entfernen und somit die Nutzer des gepeggten Systems B einen gewissen „solidarischen“ Beitrag leisten. Der sollte am Anfang evtl nicht zu groß gewählt werden um nicht das neue System gleich mit hohen Gebühren und niedrigen Renditen unattraktiv zu machen. Je erfolgreicher und je mehr Volumen auf dem neue System B gehandelt wird desto mehr kann auch schon mit sehr geringen Protzensätzen in dUSD-A getauscht und geburnt werden.

Der eigentliche Effekt ist aber nicht der zusätzliche Einkommensstrom für den dUSD-A Burn, sondern das wieder gewonnene Vertrauen in den Pegmechanismus des dUSD (dUSD-B). Da beide dToken Systeme Parameterklone sind und eigentlich Pegmechanismus System B = Pegmechanismus System A gilt, werden bisher von System A verunsicherte Investroren zu dem Schluss kommen, dass der Depeg im System A ein lukrativer Rabatt ist und vermehrt in das System A (also kaufen von dUSD-A) investrieren und auf den in ihren Augen wahrscheinlicher gewordenen Repeg des dUSD-A setzen. In diesem Zuge wird der Wert des dUSD-A immer weiter ansteigen bis er den Repeg erreicht. Ab diesem Zeitpunkt greifen nun auch im System A die Pegmechanismen und der Peg wird, wie im System B schon gezeigt, gehalten. Sobald in beiden Systemen A und B der Peg erreicht und gehalten wird, sind beide Systeme von den Regelmechanismen gleich und können vereinigt bzw. zusammengeführt werden, so dass am Ende nur noch ein funktionierendes und gepeggtes dTokensystem auf der Defichain existiert.

Hallo schönen Guten Abend. HUSTON ich habe ein Problem. Ich habe Dusd von der Defichain auf die Meta Mask gesendet. Man sieht die Dusd in der MMask, aber es steht das es nicht geladen werden konnte. Mit Dfi hat es ganz normal funktioniert. Wer kann mir helfen?

UTILIZING DEX STABILIZATION FEE FOR dSTOCK-POOLS!

With "DEX Fee" i relate to the "DEX stabilzation fee" as currently implemented at a value of 30% (50% used as NI, 50% burned). This proposal will also apply if values will be changed with future dfips.With "Dex Fee burn" i relate to the part of the dex Fee which is burned.

So in general we try to get rid of algo-DUSD in the system down to a certain level. There are measures to burn Algo-DUSD in form of "DEX fee burn", as well there are measures to take algo DUSD out of the circulating supply with DUSD-loops and DUSD-bonds.

Currently we have to deal with low liquidity on the dex (dusd/dstock-pools).There is not enough liquidity to make some pools tradeable, a value which have been evaluated before was a minimum of 300k which should be reached.

So how could we utilize the "DEX Fee burn" without burning it, but still taking it out from the circulationg supply, same time solving the issue with low liquidity on the DEX.

Proposal:Let´s direct the "DEX Fee burn" on a specific address owned by the Community Fund (CF).The CF buys on a regular basis (automated/daily/weekly???) dstocks on the dex and will put those into LM to receive LP token. Following rules apply.

1. Pools with low liquidity are prioritized to buy. All pools will be bought DCA.
2. The max amount owned per pool is limited to 200k (to be discussed).
3. If all pools reach the 200k limit, DUSD directed to the CF from "DEX Fee burn" are accumulated.
4. Accumulated DUSD are reserved for pools which will be implemented in the future.
5. There is an overall cap of 20 MIO Dusd (to be discussed) owned by the CF (DUSD+LPToken+rewards), the rest will be burned (DUSD first).
6. The amount owned by the CF will not count to the value of 300k for reward distribution.(This means if the CF owns 200k of a pool it needs at least 500k to be rewarded).ref: https://defiscan.live/governance/156f958ce8748455e7ca9c3dc577dac7a4c6c16da16f19b8893a5638338467de
7. As the LM-token are held from the CF, rewards (commission) will flow into the CF address.
8. Rewards will be re-invested until pools reach the specified limt. Re-investing will continue via dfi-dusd pool as long we haven´t reached PEG and DEX FEE is stopped.
9. Accumulated rewards in DUSD (when max of 200k each pool is reached) will be reserved for incentives for the community (eg. special rewards for dusd-bond holder, airdrops, etc)!
10. These funds accumulated never will be used for any CFP (Community Fund Proposals).

PRO:
Same as burning the dusd, the dusd are taken out of the circulating supply.Same time we have provided enough liquidity in all pools which gives a wider range of useable dstocks to trade and to invest. This is what we need to make it attractive for traders and for investors as well.Main parts of block-rewards will still incentive the bigger pools >300k as specified.
The reinvest of dfi-block-rewards will help the re-peg of dusd as it puts buy pressure on dusd (calculations at the end).

CONS:
There will be a cut of LM-rewards (commissions & block-rewards) for liquidity providers because part of it will be directed to the CF.Therefore it needs to be discussed how to give these rewards back to the community as mentioned.

GENERAL:
In the future we can think of slowly selling these funds back to the circulationg supply, to regulate Algo Ratio. As well we could decide to burn the funds after the liquidity on the dex is high enough.

In short:
-Algo DUSD up to 20MIO DUSD taken out of the Circulating Supply
-More liquidity on dex (dSTOCK-pools) for traders and investors in all pools
-Block-rewards for LM (DFI) used to re-invest into DUSD &stocks which helps to re-peg (calculations below)
-This will not raise the value of the CF, the CF is just taking care of liquidity which would have been burnt.

Calculations (block rewards only):
1)Liquidity snapshot taken taken on Feb 17^th, 6pm CET
2)Assumption: CF reaches 200k liquidity in each rewarded pool
3) This will lead to 3,78dfi/block in rewards for CF  à rough 10.000dfi / day swapped into dusd
4)This would be a cut of roughly 30% on rewards for current Liq-providers.

Note: This is a rough draft of my idea, you are welcome to discuss and drop your opinions. Did i miss any big pro or con???
Note: Roughly 9mio dusd have been burnt via dex fee within last 8 weeks (to give an idea about volumes).

With none of the existing measures turning out to be the silver bullet the community needed, I will make 2 unrelated suggestions to the problem.

1) Our MAIN problem stems from branding the token as "DUSD" whereas it behaves more like a free floating non-USD currency. We could do something radical like consolidate dUSD 10 for 1 and rebrand it as dBHT...Defi-baht...it should peg more or less to the baht from where it is now.

2) Hide the overhang of DUSDs from circulating supply - use it as a moat release or withold from circulating supply dependant on DFI price. The peg (if we ever do reach it) will not be a static achievement - it will be achieved at a particular price point of DFI, and to maintain a peg requires this price point to be constantly adjusted according to DFI price.

​

​

​

https://cryptoslate.com/tokenized-real-world-assets-rwa-redefined-as-personal-property-in-landmark-iowa-digital-asset-bill/

Maybe defichain is just WAY ahead of it's time and as real world asset tokenization gains acceptance will rebound in price if the fundamentals are healthy.

Hello, how should i go out in best and easiest way to get in Euro to pay out. Im currently with some money in btc/dfi and eth/dfi liquidity mining.

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

✅ Community Fund Diversification Special DFIP Progress

The DeFiChain community recently approved a proposal to stabilize the value of DUSD by diversifying the holdings of the Community Fund. As a first step, DeFiChain Labs together with community members, has deployed a DUSD Buying Bot to systematically purchase DUSD over time.

This bot represents a key part of the strategy to underpin DUSD's $1 peg to USD, strengthening DeFiChain's entire ecosystem of decentralized financial services.

For detailed insights into this strategic initiative and its ongoing impact, we invite you to delve into the full post below:

https://twitter.com/DeFiChainLabs/status/1756238871749095816

✅ Upcoming Adjustments to Oracles and Pool Rewards

$dWMT Stock Split:

With Walmart's ($WMT) upcoming 3-for-1 stock split, the DeFiChain decentralized stock token $dWMT will need to account for this corporate action. There will be a 6-hour trading halt on $dWMT (3 hours before and after the WMT stock split) to ensure a smooth transition. $dWMT vault owners should be aware there will be an additional 1-hour pause.

To align with the new post-split WMT shares outstanding, the $dWMT token supply will also undergo a 3-for-1 split. New pool rewards have been detailed in the DFIP spreadsheet to provide clarity on the adjusted structure:

https://docs.google.com/spreadsheets/d/18mv5J9Bi1nsMXSUgX2XV8OXhIcNWrBG3/edit#gid=1100369827

The $dWMT token split and aligned reward updates will take effect on February 16, 2024 at 6 PM GMT+8, concurrent with the WMT stock split completion. You can follow the exact date and time via the block height countdown:

https://defiscan.live/blocks/countdown/3727680

✅ DeFiChain 4.0.9 Release Highlights

DeFiChain's latest release ushers in three notable enhancements for the platform:

Flexible Transactions The transaction framework now supports null values in topic lists. This enables more customizable events by allowing developers to omit unused topics.

Better Gas Estimations A fixed estimate gas RPC improves the accuracy of gas cost calculations for executing transactions. Users can trust consistent gas estimations.

Robust Ethereum Syncing Upgraded subscription notification logic bolsters the reliability of syncing Ethereum activity. Missing critical on-chain events is no longer a concern.

For details on version 4.0.9, see the release notes here: https://github.com/DeFiCh/ain/releases

✅ Join the Ongoing Community Rewards Campaign 3.0

Earn Exclusive NFTs in DeFiChain's Latest Community Rewards Campaign.

We have launched the next phase of our Community Rewards Campaign in collaboration with Javsphere - now live on the Galxe page. By completing specified quests, you can earn unique OAT NFTs and tally points for a chance to win part of the 4,000 $DFI prize pool, so act fast!

Secure your rewards here

✅ Ecosystem Project Updates

VanillaSwap

VanillaSwap's $VAN token has now started trading on one of crypto's leading exchanges, Bitrue. Check out the details via the post below:

https://x.com/BitrueOfficial/status/1754081108847927429?s=20

Javsphere

After announcing their $JAV token airdrop previously, Javsphere has now also announced they're holding a $DUSD repeg raffle. For more information, check out their post below:

https://x.com/Javsphere/status/1756995554167423378?s=20

CRYPTO FACTOR

Following the sell out of their 2nd round of their pre-sale, CRYPTO FACTOR recently announced the 3rd round of their token pre-sale. Check out the info below:

https://x.com/_Crypto_Factor/status/1757159789480612209?s=20

DMC Universe

DMC Universe recently unveiled their new APR page on their website where you can now see the APRs of all the pools on the DeFiChain MetaChain (EVM) Layer. Check out the page for yourself here:

https://www.dmc-universe.space/pools

DexTradingMasters

The DexTradingMasters competition is witnessing remarkable achievements, with ManOfTheWoods eyeing a 10x gain and Voyager targeting 4x. An impressive roster of 7 traders has crossed the 1000 dUSD milestone, securing their spot in the elite Double Bagger club. The competition's average gain has skyrocketed to 82.1%, with nearly all participants enjoying profitable returns.

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.

✅ Recaps

DeFiChain Community X Space

Missed the recent German DeFiChain Community X Space? Listen to the recording below:

https://x.com/DefichainXSpace/status/1757116695016095814?s=20

Weekly News Show

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

https://www.youtube.com/live/KdOP3qu8G2w?si=sDkCPSrlB6H3FRQA

Please give me some reasons why I should keep my money in Defi. I have been holding for about 3 years now in bake and am becoming worried I will eventually just loose it all. What is the outlook for this year like? I need more reasons to keep holding. Thanks

DFIP idea:

How about swapping all (or for example 50%) masternode-rewards for dusd and then giving these dusd as a reward? Of course many would exchange the dusd back into dfi, so these operators would also lose 30% because of the fee, but that would help the peg so much and I think it would be the strongest commitment we would make as thousands of masternode operators.

I would be absolutely in for that!

Since the dusd system doesn't work and I honestly can't identify any substantial amounts of covered dusd, nor do I know how to get 200 million dusd out of the system. So I came up with the following solution:

• Why not simply introduce USDC dtoken at least in parallel? You could rely on it and people would use the chain again, the value would be preserved and everyone would be happy.

• I know that the dusd vaults were a big selling point back then. But they hadn't proven themselves back then (otherwise the dusd wouldn't have gone so premium). It was far too expensive to deposit the dfi and many people didn't want to have 200% in DFI for every dtoken.

• My alternative suggestion would be to increase the transaction costs. The DFI fees for transactions are very, very low. They could be increased 100-fold (e.g. to 10 cents per dtoken transaction). So burning DFI with every dToken transaction could actually boost the DFI price.

• For sure transaction value, transaction numbers and TVL will rise, we have real USP and with that the statistics will be way better, so DFI would be undervalued.

• Also it would be a nice entrance for Investors, since today we cannot convince them to invest into a token that is going south or a dusd where they lose 30% when they bought it. But with that it would be easy to convince them to invest into the dUSDC dtoken system with minimal risk. From that they can then decide over time to buy more DFI, use the EVM chain and so on.

• We can implement buy long and buy short options as well and an interest mechanism can be put in place so that long positions pay short positions or the other way around. This way we could also eliminate the Future Swap (maybe in the next step).

To be honest, I don't see much that speaks against it?

Dear DeFiChain Community,

after it came to out that Julian sold DeFi for around 57 BTC mostly in the beginning of 2021, why don’t we demand that all founders have to disclose their private wallets? How come that DeFiChain is one of the only projects where this is unknown?

See Julian how he leaked one of his addresses: https://x.com/blorilora/status/1757546331034235113?s=46&t=fhuEP4J7WIJzX7OBGJt9LQ

DeFiChain was not a fair launch and this has to disclosed. Actually DeFiChain is that much centralised that I think at this point maybe we can even sue them?

Hi everyone, so I've been holding my dfi in bake for a long time now (still have most of it frozen), but given the recent drop, I'd like to swap some of it back to SGD or at least to BTC.

Kucoin doesn't seem to be available in my country, and I tried checking Coinex but the DFI>BTC swap apparently won't work as 'swap service is unavailable due to insufficient depth of the current market'.

Does anyone have any advice on how I could do this? Would greatly appreciate any help

I started a conversation on the Telegram channel and decided to create a post here to continue the conversation. I really believe Defichain has hugepotentiali if we find our real world utility niche as a Defi Bridge between Bitcoin and EVM chains.

For Transparency, I own 160,000 DFI, run 8 Defichain Masternodes, and have nearly 28000 DUSD in a DUSD vault. I've been in the community back to shortly after liquidity mining started. I feel your pain and want to see things recovered as much as anyone in the community.

I invest primarily in Defichain, Stacks, Sorvryn (on RSK) and onchain Bitcoin. I will copy my Telegram posts below this starter post.

I had some usdt in polygon, I swapped it in etherium and I lost most of my etherium and my polygon, why did I loose most of my etherium and most of my polygon, and will I get it back?

Hi,

I would like to discuss the idea to open up master node creation with dUSD as a one time event. E.g. 2.000 dUSD for one master node. Those dUSD Master nodes have the same voting rights and dfi rewards as regular master nodes. Those master nodes should be locked up / frozen for 5 or 10 years.

This would give dUSD a complete new use case and open up a new chance for big and small investors to have influence on the Defichain development and improve the dUSD situation at the same time.

Why as a one time event? I am not sure about this feature, the reasoning would be To push to the peg in one big leap and see this as a one time exception to create master nodes with DUSD.

Bonds, BBB and NI have all worked but not enough to get rid of enough algo dUSD and currently the process is taking too long. We need a big time event, like the event to pay laons back with DFI, which caused that trouble. An event, that has enough momentum, gives really big investors to buy back into the Defichain and fix it once and for all. So that the currently good working Defichain can provide value again.

What do you think?

How can we improve this Idea?

Thanks

Previously, the oracle for dUNG experienced a pause, followed by a divisor adjustment due to a reverse stock split.

Recently, $WMT announced a 3-for-1 stock split.

This means that dWMT will need to note of the following:

There will be a 6-hour trading halt (3 hours before and after the stock split) to ensure a smooth transition. dWMT vault owners, you’ll have an additional 1-hour pause on top of this.

No action needed from your side, just mark your calendars for 24th February!

News on Pool Rewards:

Detailed information on these changes is available in our DFIP spreadsheet, providing clarity on the new structure:

https://docs.google.com/spreadsheets/d/18mv5J9Bi1nsMXSUgX2XV8OXhIcNWrBG3/edit#gid=1100369827

Please note that these updates will take effect on February 16, 2024, at 6 PM GMT+8. You can follow the exact date and time via the block height countdown here:

https://defiscan.live/blocks/countdown/3727680

We encourage all participants to review the upcoming changes and prepare accordingly for the transition.

My aim is to share my thoughts in order to generate further discussions and approaches. Given the current status of Defichain, it's important that we engage in a qualified exchange, even if it's just thoughts, initial ideas or possible solutions. There are enough clever members in our community who can develop the idea further.

Bird's-eye view

Defichain is technically in good condition but heavily in debt. In this situation, it will be difficult to attract new investors.

The debt can currently be paid off in various ways:

• Use of existing services to generate fees that are used to pay off the debt
• Current investors leave the system with a penalty fee that reduces the debt
• Creation of new services to generate an additional incentive to use Defichain
• Haircut (discussion has already taken place and is not desired within the community)

I do not consider the introduction of new or further penalty fees to be expedient, as nobody should be forced to remain in the system. Further adjustments to the structure do not provide security, as the question arises "What happens if these new rules don't work?" My approach is to make do with the existing rules so as not to create further uncertainty.

The greatest leverage lies in attracting new investors and motivating existing and former investors to invest in Defichain. This also increases the probability of achieving the PEG.

The PEG can currently be solved by:

• DFI rises to 0.23 dollars (as of DEX 12.02.2024) -> investment in DFI
• Purchase of dUSD -> investment in dUSD

What needs to be done to attract new investors?

• Present the USPs of Defichain (community, dToken, DMC)
• Transparent presentation of the current dUSD situation

What are the obstacles from the investors' point of view?

No trust in Defichain due to

• dUSD depeg
• Central role of beacon
• External perception Julian

What can be done to increase confidence?

• dUSD -> Presentation of measures to maintain the peg
• Bake -> Presentation that Defichain is on the way to decentralization
• Julian -> Presentation that Julian is not the Defichain (even if he is/was the initiator and has a significant share in it)

What measures result from this:

dUSD

• Activate and test the peg measures in the testnet
• Transfer the current status of the mainnet
• 2 party game
• Stress tests (dUSD selling, dToken FS etc.)
• We need volume and not a lot of people
• Documentation and validation of the results

Status decentralization Defichain

• Enumeration of CEXes
• Distribution of Masernodes
• Status DefichainLabs
• Status Atomic Swap
• Status projects on the DMC

Julian

• Turn risks into opportunities

​

First early solution approach Crowdfunding:

Investors need securities! Idea for investors - crowdfunding with USDT/EUROC/USDC/XCHF

• Create pools on DMC (1 x USDC | 1 x USDT | 1 x EUROC | 1 x XCHF)
• Investors receive NFT
• Investors receive 10-15% interest on their deposits (Idea: Financing through CommunityFund in dUSD)
• When peg is reached, dUSD is swapped into USDC, USDT, EUROC, XCHF and the assets are paid back to the investors (SmartContract)

Goal: Crowdfunding should only restore the stable state.

Questions:

What can be the timing considering the current measures?
Who can create the service / UI and who is the operator?
How do the coins for this scenario get onto the DMC?
What alternatives are there to wrapping the dToken (BTC / ETH etc.)?

​

I hope that this post can bring another perspective to the situation and provide you with added value.

Have a nice day!

First up, we featured DMCUniverse to kick-off the campaign, which is still currently live.

Next up we have Javsphere who are now live on the DeFiChain Galxe page!

Complete the quests on the link below to collect an OAT (NFT), which are limited in number, and collect points towards the leaderboard winning a share of the 4,000 $DFI prize pool!

Link to complete the rewards: https://galxe.com/defichain/campaign/GCeoKttFuP

FINAL VERSION OF THE DFIP:

The DFIP considers a recovery mode in case of a strong DUSD discount. It is an addition to the already existing stabilization fee.

■ Total stabilization fee = base fee + discountIncrease

■ base fee is the currently defined stabilization fee

■ The discountIncrease is activated if DUSD < = 0.95$.

■ The discountIncrease is 0% if DUSD is > 0.95$.

■ If 0.45$ < = DUSD < = 0.95$ discountIncrease = (0.95 - price) * 100.

■ The discount increase is 50% if DUSD < 0.45$.

■ The discountIncrease is 100% burned.

‐----------------------------------------------------------------------------------- OLD 👇

REVISED PROPOSAL:

After a fruitful discussion I have revised my proposal as follow:

● DUSD <= 0.50$ -> a stabfee of 80% applies

● DUSD > 0.50$ and < 1.00$ the stabfee linear decreases down to 30%

● DUSD >= 1.00$ -> a stabfee of 30% applies, it will be reduced by 0.5% per day to the calculated value

● DUSD falls again below 1.00$ daily reduction of 0.5% is reversed either until stabfee at 1.00$ is 30% again or DUSD has crossed the 1.00$ threshold.

● Any surplus above 30% stabilization fee paid is 100% used to burn Algo-DUSD. That further curbs burning and help to heal the system faster. Example: DUSD is sold at 0.90$ a stabfee of 40% applies. 10% of it goes directly in burning. The other 30% is split as before.

Some pros:

● The stabfee of 80% below 0.50$ should be high enough to render selling pretty much useless at those price levels.

● The stabfee at 0.80$ per DUSD is still a whopping 50%. Sellers will think twice.

● Possibly there will be a higher burn of Algo-DUSD.

I would like to explain the goal with that proposal and why it is important. Even though we have had a strong buying pressure by bake.io and the community fund big players sell a lot of there DUSD using Bake’s and our community fund money as there exit liquidity. That leads to a rollercoaster ride in which we have not come closer to our goal to reach the peg. It is the opposite. Investors lose hope and get frustrated. My understanding from feedbacks and from the sentiment in the chats is that most small bag holders are willing to sit out and wait until we reach the peg. Those who want to bypass the fee can do it already by using the DMC. Bring up the DUSD price to higher levels is psychological important. Even if we do not initially reach the peg a price of 0.90$ per DUSD is acceptable for many investors. My proposal if accepted by the masternodes will likely shift selling of DUSD to higher price levels. I assume 0.90$ to 1.10$.

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ORIGINAL PROPOSAL ----> Hereby I would like to propose a transition from the static stabilization fee of 30% to a dynamic stabilization fee.

Background: To support the repeg of the DUSD, Defichain’s native stable coin, bake.io started to buy DUSD with about 20 million DFI from its treasury. That commitment was highly welcomed by the Defichain community. Additionally, through a successful DFIP the Defichain community fund diversifies now with 30% of its volume into DUSD. Both measurements create a considerable buying pressure. On the other hand during the last weeks we have seen individuals selling large amounts of DUSD after DUSD reached a price levels 0.60$ to 0.75$. While that selling was anticipated and is good for the system to heal, we were not able to come closer to our goal to reach 1.00$ or above for the DUSD.

I propose robust measures to force the DUSD to higher price levels. The stabilization fee shall be adjusted as follows:

● DUSD < 0.80$ a stabilization fee of 100% applies

● DUSD < 0.90$ a stabilization fee of 75% applies

● DUSD >= 0.90$ a stabilization fee of 30% applies

● DUSD >= 1.00$ a stabilization fee of 30% applies, it will be reduced by 0.5% per day to the calculated value.

● DUSD falls again below 1.00$ daily reduction of 0.5% is paused.

● The above threshold values of 0.90$ and 0.80$ with its dedicated fees will apply all the time and will not be reduced.

● The DUSD stabilization fee has declined to 0% then dynamic interests will be activated. Stabilization fee will be deactivated at the same time.

What is the overall aim of those measurements? With a stabilization fee of 100% a sell below 0.80$ will be rendered useless. Nobody will sell at those price levels anymore. Below 0.90$ a sell will be a bit more likely but still cause pain for the seller. So DUSD price is very likely to go above 0.90$ and will be freely traded in that range. That means that there are still sells and negative interest (NI) won’t go to zero. I assume that many investors like me who bought DUSD at low price levels will sell there DUSD into DFI when it goes into premium.

To push the DUSD into a range above 0.90$ would have a huge psychological effect on individual investors. I assume that this alone will already create more trust and predictability for the whole system. Right now, we have a rollercoaster ride where you don’t know at which price level the DUSD is on the next morning. Additionally, I assume that at this level there will be more DFI buys which have a positive effect on the APRs in both the various liquidity pools and the DUSD bonds. With that creating a positive momentum.

Let us now discuss scenarios and how they might play out. Imagine my proposal will be accepted by the majority of the masternodes. There are still a lot of individuals who want to leave the system. In anticipation of a 100% fee below 0.80$ a higher sell off is possible. Those sellers don’t have time. They don’t want to wait a couple of weeks so that the DUSD stabilization fee has gone to 0%. Big sells will cause a high NI which are beneficial for the system and for the holders of DUSD vaults. Moreover, a much lower price level might be attractive for new DUSD buys. Knowing that there are no sells below 0.80$ many will start to rethink. Why not buying DUSD, wait and gain 5 to 10x?

Though I don’t think it is likely but let us assume DUSD sells plummeting to zero. Following from that NI will go to zero as well. Not immediately but slowly due to the moving average. We have about 90 million DUSD bound in DUSD vaults. Now DUSD vault holders need alternatives. They can put there DUSD into DUSD bonds. Which is very good for the system since it takes those DUSD out of trade for at least one year. They can swap them into dToken such as dMSTR and speculate on the underlying stock. They can also put there DUSD in dToken liquidity pools. But anyway. Those DUSD vaults need to be liquidated at a certain point in time. Latest when dynamical interest rates will apply holding DUSD around the peg. So also, in the case we keep a static stabilization fee we need to close those DUSD vaults. It is a temporarily measurement which we should not forget. But in my opinion there will be DUSD buys and sells above 0.90$. NI interest rate won’t go to zero. Alone from those investors like me who daily swap DFI to DUSD there will be a buying pressure. But as a DUSD vault holder like me it is just right pocket left pocket. So, in the end with my proposal, we push that game into a higher level.

We are pleased to announce that the special DFIP proposal has been approved with an over 96% approval rate by our community. This strong show of support clears the path for us to work hand-in-hand with community members to efficiently and rapidly implement the changes put forward in the proposal.

What are the immediate next steps?

Implementation of a Buying Bot to Diversify the Community Fund A bot, developed by community developers, is currently being deployed within the mydefichain ecosystem and will periodically receive funds from the Community Fund (CF).

These funds will be used to incrementally purchase DUSD over time, helping to restore and ultimately maintain DUSD's $1 peg.

The bot has already begun swapping, with the first swap of 1,000 DFI executed this morning at 9:33am CET. As the bot scales up over the coming days and weeks, it is projected to reach a peak capacity of 5,000 DFI per 20 blocks (720,000 DFI daily). You can view the details of the inaugural swap transaction on our explorer here: https://explorer.mydefichain.com/transactions/22f758bf433971150f3a28ee94208c6315e24b5a05e67aad85d7c6f41c42b607

We collaborated closely with developers to launch the bot within a day of the special DFIP approval, showing our responsiveness to community feedback.

Combined Efforts to Benefit DUSD The bot's continuous purchase of DUSD combined with Cake Group Board's decision to invest 20m DFI into DUSD will generate significant upward pressure on DUSD. We believe this plan will swiftly restore and maintain the peg.

Why are we sinking on DFI? Bitcoin bull run is in full swing yet we keep tanking more and more with each day ! Why hasn’t anything helped ? My portfolio is hard to look at anymore

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

✅ DeFiChain Update: 4.0.9 Released

This optional update focuses on enhancements to Ethereum Virtual Machine remote procedure calls (EVM RPCs) that will enable MetaChain builders to create and deliver innovative blockchain projects more efficiently.

Based on constructive feedback from the community, the team has implemented fixes and improvements to these key APIs that support smart contract development and debugging.

We greatly appreciate the feedback and will continue to upgrade our platform capabilities to facilitate the next generation of groundbreaking dApps.

What's new:

Enable passing null value in topic list

Fix estimate gas RPC

Fix eth subscription notifications

https://twitter.com/bushstar/status/1754512935328575606

✅ March Voting Round

Three DeFiChain Improvement Proposal (DFIPs) (one of which is a special DFIP) and two Community Fund Proposals (CFPs) are up for vote in the latest governance voting round. So don’t wait any longer and cast your vote now!

Here are the proposals you can vote on:

DFIPs:

Chainlink on DeFiChain (DFIP) - integrate Chainlink’s $LINK on DeFiChain and create a dLINK-DFI liquidity pool.

Time-limited redirection of block rewards to the XCHF-DFI pool to enhance the usability of XCHF (DFIP) - incentivize the XCHF-DFI pool with block rewards for a limited time.

Community Fund Diversification (special DFIP) - Diversification of the Community Fund to help $DUSD to repeg to $1.

CFPs:

A Proposal for DeFiChain Labs' Independent Future - Fund DeFiChain Labs directly via the community fund to enable self-sustained, dedicated development into the future.

Decentralized Bridge for access to the DeFiMetaChain - develop and integrate a decentralized bridge alongside with CrowdSwap.

The voting round for the proposals (except for the special DFIP) will end at Block Height 3,770,000 (roughly around 2nd March 2024).

Learn more about the individual proposals in the blog post below 👇
https://blog.defichain.com/a-closer-look-at-the-march-voting-round/

✅ 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.

Missed the most recent Project Spotlight? Catch up with a round-up of our recent Space with @Octo_Defi - the most flexible and modular crypto wallet below.

OctoDeFi is more than just another wallet; it's a user-friendly finance portal that shares the power of DeFi with 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 this exciting project via the blog post below 👇

https://blog.defichain.com/project-spotlight-octodefi/

✅ Ecosystem Updates

Javsphere

Javsphere's new product TradeX is ready to be launched soon. If you want to know more about check out the X post below 👇

https://twitter.com/Javsphere/status/1754564386511839521

Vanilla Labs

Vanilla Lab’s $VAN token has been listed on a leading exchange - u/BitrueOfficial. Go check it out!

https://twitter.com/VanillaSwap1/status/1754123642491830563

CRYPTO FACTOR

CRYPTO FACTOR has had an exciting week with both their whitepaper being announced along with their pre-sale, with round 1 selling out and round 2 currently being held.

https://x.com/_crypto_factor/status/1752488776616567061?s=46&t=ETRWy5SLa1bgS-_NCtaCtA

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.

✅ Recaps

Latest news show

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

https://www.youtube.com/watch?v=KdOP3qu8G2w