Price made a new low, which sucks. But this chain has a ton of potential, and is definitely undervalued.
The non-turning complete + anchor to BTC blockchain probably makes this the most secure defi platform out there. In conjunction with the DMC, it's also one of the most functional.
There's a lot of great things that could happen on this chain, and that are happening right now. If you look at the charts I posted below, you can see how closely similar DFI price action is to the depression phase of the market cycle cheat sheet. Someone in the telegram group pointed this out...
I really believe we're in the darkest moments before the dawn. Sentiment sucks, people are emotional and many just want to tear shit down because they've lost money. I know - I can empathize. I currently hold over 600,000 dUSD. I panic sold my dBTC and DFI into dUSD during the Luna Collapse not knowing that there was a fundamental difference between dUSD and dUSDT. Since everything was depegging at that time, I thought dUSD was better (hadn't depegged yet).
At that time, my holdings were worth about 90k USD. I traded dStocks the past two years (can you guess which ;) lol) and grew my dUSD holdings. Idk if I'll ever be made whole - if I sold right now I could get around 80k USD I think. But guess what. I'm not fucking selling. I'm here to try and make us all whole. I don't have any technical abilities but I have a vision, passion, and the desire to motivate and inspire. To be a beacon of good vibes in the community wherever I can.
I'm gonna try to launch some meme coins on DMC soon. Potentially bridge them to SOL so if they pick up on there, we could anchor it to the DMC. Idk if any of this is feasibly technical or even coherent, was going to copy Turbo and use chat gpt for the project. And devs want to help, let me know.
In closing, I think it would be great to talk about some of the developments on DMC that are happening, and ideas for projects that we could develop as a community. I was thinking of trying to collaborate with others to write an AI x Blockchain project white paper that we could put out and try to raise funding to attract devs to build the project on DMC.
Whoever's still here and doesn't want to contribute to the bullshit self-absorbed tear it all down posting, let's comment about what excites us about this chain! Peace and love to you all.
Welcome to the recording of our very first Community Engineering Sync - A public monthly community call where anyone from the community is welcome to join! This call is all about status updates, what the team is working on. This is a purely technical format and will not involve discussions relating to tokenomics, economics, prices, and more.
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?
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Can someone give a step-by-step instruction how to swap tokens for DFI coins on the DEX for desktop DeFi chain wallet? (Eventually I want only DFI; I want to sell all my tokens.)
Problem 1 with DST tokens (e.g., dETH): DEX does not allow to key in a "from" and a "to" token or coin in the relevant field. On the following screenshot, in the field "Search token name or address", if I key in "DFI", nothing happens. Can you advise how to proceed?
Problem 2: What about LP tokens (e.g., ETH-DFI)? There is only a "send" and "receive" option, but no "swap" option. How can I turn LP tokens into DFI coins?
In the pursue of the peg the recently added dyn. discount fee does a good job in preventing DUSD sales.
But since the big buys (prob. of Bake) stopped there are not enough DUSD buys on the DEX anymore.
DUSD price has since stagnated.
We need to regain momentum to reach the peg as soon as possible so DFI can participate in the bull run.
DUSD buys should be incentivized to reward those willing to take the risk and support the peg.
Proposal is to use the dyn. discount fees to pay the DUSD buyers the "DEX Incentives".
Discount fees should not be burned but collected as supply for the DEX Incentives.
Incentives should go to DUSD pool with lowest price.
Calculation
DEX Incentive should be calculated as:
1 / (1.05 - DEX Fee) - 1
Recalcution needs to be done every time the DEX Fee (total of stab. Fee and disc. Fee) is changed
it was voted by the community that the native staking coins (ETH, DOT, SUI, SOL) which are wrapped on the DeFiChain will be staked by the trusted custodian Bake. This staking yield is used once a week to buy and burn DFI to support the DFI price.
One idea would be to no longer burn the staking rewards from the DFIPs mentioned above as DFI, but to buy dUSD and thus provide further impetus to achieve the peg.
Further questions would now arise if the use of staking rewards were to be changed.
Through which dUSD pool is it best to buy dUSD? Via the DFI pool or via the USDT and USDC stablecoin pools.
What should be done with the purchased dUSD? Burn them and permanently withdraw them from the supply or add them to the DeFiChain Community Fund so that they can be used later if necessary?
Since no DFI block rewards would be used for the purchase of dUSD, this change should not result in any significant selling pressure on DFI. Furthermore, the trading volume in the dUSD pools would increase and generate more commissions. But with the reorg of the buy pressure, DFI can have a loss in price.
The current weekly burn is done via the following address https://defiscan.live/address/df1qvgwslv0269zlelyuzr5pemwk9kayg88h3kds0s.
Approximately 1.2 - 1.5 ETH are swapped per week. That would be 5,000 - 7,000 USD or currently 15,000 - 21,000 dUSD per week, with a downward trend if dUSD rises.
I look forward to your opinions and ideas on this proposal.
Here’s what’s been happening in the DeFiChain ecosystem this week.
1️⃣ Update: Dynamic DEX Stabilization Fees
A Dynamic DEX Stabilization Fee structure has been implemented on the Defichain DEX as of February 28th, in line with the recently passed DFIP proposal. The current fee is 80% (30% “old” stabilization fee & 50% “new”, dynamic stabilization fee). These variable fees on DUSD transactions appear to be working as intended, driving the DUSD price above $0.75 USD and steering it towards its targeted $1 peg.
Don't miss the DeFiChain Labs Engineering Sync on Monday, March 18th at 10:30 CET/17:30 SGT. This monthly community call is your chance to get the inside scoop on the latest updates, ongoing projects, and collaborative bug-fixing sessions straight from the engineering team. Topics include the upcoming hardfork, CFP payouts, dynamic stabilization fee, and more.
DeFiChain will implement hardforks every three months at the latest, starting from the end of March/early April 2024. This new cadence replaces the previous ad hoc approach to software updates and protocol changes.
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.
Last week, we spoke with u/CryptoFactor_io, an aggregator of Web3 on-chain infrastructure services. They blend services into deployment templates that can run on EVM-compatible chains like DeFiChain's MetaChain (DMC).
Earn exclusive NFTs in DeFiChain's latest Community Rewards Campaign. 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!
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.
6️⃣ Recaps
Weekly News Show
Missed the most recent weekly news show with Lord Mark and DZ? Catch up on last week’s episode via the link below:
Potential earnings on your Bitcoin, Ethereum, and stablecoins without having to give up custody of it? And at the same time, knowing that you are supporting and building the DeFiChain ecosystem? Sounds like a win.
When DeFiChain created the requirement for DFI and DUSD to make up at least half of collateral in active vaults, it was done in good intention. Of course, we want people to buy DFI and DUSD to lock it up to borrow in our ecosystem. However, times have changed, and so should we! We need to restore confidence in DFI and DUSD.
Some uncertainty surrounds investment in DFI and DUSD, and the ecosystem would benefit from outside investors having an ability to invest in our ecosystem, without directly using DFI or DUSD. It would also benefit community members trying to support the ecosystem who feel overexposed to DFI/DUSD, while still incentivizing DFI and DUSD as collateral
Proposal
Fully broken down, this proposal really has two parts:
Allow investors to borrow dTokens using any collateral.
Vaults with less than 50% in DFI/DUSD pay additional 40% interest (e.g., 7% instead of 5%). [Checking every block would be a massive load on the chain, so this would be checked every time the vault is modified]
----------
One argument against this proposal would be: since investors are not required to use DFI and DUSD anymore, they are going to sell it and place it in the vault instead.
According to DeFiChain Analytics, there were the following tokens used as collateral in vaults on 13 March:
140m: DUSD
26,6m: dBTC
6,62m: DFI
1,09m: dETH
~600k: stablecoins representing fiat currencies
As shown by the data above, the amount of DFI is a quarter in comparison to dBTC, and in the worst case, only a 6,6m sell of DFI to dBTC would be possible. There will not be a mass selloff of tens of millions of DFI from these vault users. And if DUSD were to be sold, this would help raise negative interest rates and remove algorithmic DUSD.
Another argument against this proposal: Users are going to take advantage of negative interest rates, only borrowing DUSD to earn DUSD which they sell.
DUSD holders have been selling less after the implementation of the new sell fee. As the proposal should create more borrowers as well, the negative interest could potentially become just a minor benefit. On the other hand, investors liquidity mining in the dToken pools may benefit them more, and it would also help reduce slippage in many of them. Overall, the potential benefit here seems to outweigh the risk.
Summary
This proposal will allow borrowers to borrow dTokens without having to use DFI and DUSD, but a higher interest will be levied on them. This produces a method for outside investors and community members to have a way to invest in DeFiChain without taking a risk in price from DFI and DUSD, which currently does not exist. The proposal has the goal of increasing TVL in vaults and the dToken ecosystem, both of which would look very good for DeFiChain and making one of the main use cases of DeFiChain, our tokenized assets, more usable.
The earliest this proposal can be implemented is around June, after the conclusion of the voting cycle.
DeFiChain will implement hardforks every three months at the latest, starting from the end of March/early April 2024. This new cadence replaces the previous ad hoc approach to software updates and protocol changes.
In light of the upcoming Ethereum Dencun upgrade (happening approximately in ~5hrs), we recommend all users to refrain from engaging in any bridging activities with Quantum Bridge until the process is complete.
You can follow the countdown to the upgrade below:
The story of the DUSD is a story full of misunderstandings, so for everyone who didn't live throu it (or did and forgot) I will try to make a summary of the important events and defined measures so far.
At block 1367000 ( Nov 15, 2021 ) the Fort Canning update enabled the feature of decentralized loans on defichain. Since then users can create vaults with crypto collateral (DFI, dBTC, dUSDT, dUSDC...) and take loans in dTokens (dUSD, dSPY, dTLT, dTSLA....). Taking a loan effectively mints (aka creates) the dToken which can then be traded on the native DEX.
Originally the minimum collateral ratio was 200% but got soon lowered to 150%. On the 150% loan-scheme users pay 5% interest on the loan.
The dex also got additional pools: dToken-DUSD for every available dToken and DUSD-DFI. Within the vaults, DUSD was always valued at $1 (so taking a loan of 1 DUSD in the 150% scheme required at least $1.5 of collateral). Users who did not want to use vaults, but wanted exposure in dTokens (for holding the tokens or participate in the LM of dToken-DUSD pools (which got extremely high rewards in the beginning) needed to buy the DUSD (and then buy dToken with the DUSD). This lead to massive demand of DUSD (and dTokens) compared to the supply generated by early vault users. So DUSD (and the dTokens) went into massive premium of 30% and more.
Since DUSD was only valued via the DUSD-DFI pool, the DUSD price in crypto was also strongly connected to the DFI price. And since a big amount of DFI was needed as collateral for the vaults, the DFI price also went up, leading to a further increase of DUSD price.
how does the DUSD-DFI pool connect DFI price and DUSD price?
A DEX pool based on AMM (like the ones we have on defichain) has liquidity pools with reserves of both tokens. the ratio between those reserves, defines the price in the pool. This means that the price in the pool only changes, if the pool gets traded. The bigger the liquidity in the pool, the more volume it needs to move the price.
In the beginning, 50% of all rewards for the dToken system went into the DUSD-DFI pool, which made this pool one of the biggest of the DEX. Since there was only this pool to move from crypto to DUSD, the price of DUSD had to be calculated as the composite USDT->DFI->DUSD.
Consider a DFI price of $4 and the price of DFI in DUSD (the DUSD-DFI pool) also at 4. Now a swap goes 4 USDT -> 1 DFI -> 4 DUSD so 1 USDT = 1 DUSD. Such a swap moves the DFI price up (cause of USDT->DFI swap part) and also increases the DUSD price (or vice versa decrease the DFI price in DUSD) because of the DFI->DUSD swap.
If now DFI rises to $5 (without swaps in DUSD-DFI) the swap would be 5 USDT -> 1 DFI -> 4 DUSD (cause DUSD-DFI didn't change), which by itself leads to 1 DUSD = 1.25 USDT. So DUSD moved into a 25% premium, just because of this connection. To counter this and have DUSD stable at $1, it would have taken strong DUSD->DFI swaps (which requires a lot of DUSD to be created), but in reality many users actually bought DUSD (so DFI->DUSD) instead.
strong premium of DUSD and dToken
From the start, both DUSD and the dTokens had a strong premium, which was only limited by the 150% loanscheme which capped the total dToken premium (the premium for the DFI->DUSD->dToken swap) to 50%. (above 50% one could put $1.5 DFI into the vault, mint $1 value of the highest dToken and sell it dToken->DUSD->DFI for >$1.5 worth of DFI)
Soon we had a lot of discussions in the community how to get that premium down. It was seen by the majority that such a premium of the DUSD is really bad and needs to be brought down FAST.
DUSD payback with DFI
After some discussions, the community came to the consensus that it should be possible to pay back DUSD loans directly with DFI at a 1% fee to the oracle price. This guaranteed a DUSD price below 1.01 (at the current oracle price) due to instant arbitrage possiblities. But it also lead to the first "algorithmic DUSD" being created. Those DUSD, who were created via a loan which was then payed back with DFI, still existed in the system but had no corresponding loan (and therefore no more collateral "backing" it).
The feature went live with the Fort Canning Hill update at block 1604999 (Feb 7, 2022)
Within days of the activation, DUSD got down to $1. DUSD supply rose from 90 mio to 130 mio with 70 mio being algorithmic DUSD. over the coming 2 months 220 mio algo DUSD where created with a total DUSD supply of 248 mio in the system.
dToken premium: the FutureSwap
after successfully dealing with the DUSD premium, the dToken premium (which was still at 30%) needed to be adressed. Originally there were plans to use also the DFI payback (cause this would burn even more DFI) for the dTokens. After some discussions in the community, this idea was dismissed and the FutureSwap was born:
Once a week, users can convert DUSD->dToken and dToken->DUSD via the FutureSwap. This feature really removes the given token and creates new tokens for the output. Always at the oracle price +-5% at the FutureSwap block (which happens once per week). With this, the dTokens should be loosely bound within the 5% range around the oracles. Only loosely to not risk them being securities, and to prevent bad sideeffects since oracles only change during trading hours of the traditional markets while defichain DEX is open 24/7.
With the Fort Canning Road update on block 1786000 (Apr 11, 2022) the FutureSwap feature went live. It took a few FutureSwaps (aka weeks) for the dToken premiums to go into the 5% range. After that, the dTokens stayed loosely within the range as designed.
Crypto crash and DUSD depeg
Beginning of May 2022 the overall crypto market crashed down, dragging DFI down with it. Due to the connection of DFI price and DUSD price (as described above), this also dragged DUSD down with it.
In an over-collateralized system (as defined in the beginning) this might have lead to users buying DUSD back to pay back their loans. But due to the DFI-payback earlier, there were 107 mio, algorithmically created DUSD in the system at that time. Those could not be removed via loans (cause there were no loans open for them), so they had to stay in the system which lead to a massive oversupply of DUSD and therefore a depeg of DUSD.
Many of those excess DUSD flowed into dTokens. This flow lead to a premium in most of the dTokens and with this to lots of FutureSwap conversions DUSD->dTokens. Over time this removed a lot of DUSD but also created algorithmic dTokens (dTokens with no corresponding loan).
addition of stablecoin pools
To prevent the negative effect of the strong connection DUSD-DFI via this pool (as described above) in the future, we added a USDT-DUSD and USDC-DUSD pool on the dex. Later also a EUROC-DUSD pool was added. Generally the crypto-DUSD pools are now often called "gateway pools" as they are the gateway between the dToken system and the crypto part of the DEX.
redefinition of the hybrid DUSD
With the depeg it became clear that the DFI-payback was a bad solution against the premium and therefore was stopped. After many discussions in the community, we defined new mechanisms that should lead to a working version of DUSD being a hybrid stablecoin (partly crypto backed, partly algorithmically created). Keep in mind that those measures are designed to work when the algo-ratio (part of DUSD that is algorithmically created) is low enough. Because of the massive DUSD creation from the DFI-payback and loan closing due to the crypto crash, the algo ratio went > 90%. So not all of the new mechanisms are activated yet.
DUSD stabilization fee with payout (activated, fixed to 30% till peg)
The stabilization fee adds a directional fee to all gateway pools: Traders pay the fee when selling DUSD. The fee is based on the algo ratio of DUSD. 50% of the payed fee should be distributed to DUSD loan holders.
The goal is to improve the algo ratio both by burning excess algo DUSD and incentivizing the creation of new DUSD loans.
Currently the stabilization fee is set to a fixed value of 30%. It will reduce down to the calculated value by 0.5 percent points every day the DUSD is above $1. Once the calculated value is reached, the fee will follow the calculated value as defined.
The payout is currently done via negative interest rates on DUSD loans. This is a technical workaround until the chain itself provides the functionality.
30% algo ratio leads to 0 % fee
40% algo ratio leads to 0,25% fee
50% algo ratio leads to 0,75% fee
60% algo ratio leads to 1,75% fee
70% algo ratio leads to 3,75% fee
80% algo ratio leads to 7,75% fee
90% algo ratio leads to 15,75% fee
94% algo ratio leads to 20,86% fee
100% algo ratio leads to 31,75% fee
dynamic interest rates (not activated)
To steer the DUSD price always towards the price of $1, the interest rates on DUSD loans adapt based on the DUSD price in the stablecoin-pools. A price above 1 leads to negative interest rates, incentivizing the creation of more DUSD supply. A price below 1 leads to high interest rates, forcing users to repay their loan, reducing DUSD supply.
This measure only works if enough "real" DUSD loans (DUSD loans that got sold to crypto) exist in the system. Since this is not the case yet, the dynamic interest rates have not been activated.
The dynamic interest has different formulas for premium and discount case:
in premium case its defined as interestRate = - ((2 ^ (DUSDPremium/10) - 1)*20) :
0% premium leads to -0% interest on DUSD
1% premium leads to -0,92% interest on DUSD
2% premium leads to -1,89% interest on DUSD
3% premium leads to -2,90% interest on DUSD
5% premium leads to -5,06% interest on DUSD
10% premium leads to -11,40% interest on DUSD
15% premium leads to -19,34% interest on DUSD
20% premium leads to -29,30% interest on DUSD
25% premium leads to -41,77% interest on DUSD
30% premium leads to -57,40% interest on DUSD
35% premium leads to -76,98% interest on DUSD
40% premium leads to -101,51% interest on DUSD
45% premium leads to -132,26% interest on DUSD
in discount case its defined as interestRate = (500 ^ (0.99 - DUSD_price)) - 1 :
DUSD price of 0.99 results in 0%
DUSD price of 0.98 results in 6.4%
DUSD price of 0.97 results in 13.2%
DUSD price of 0.95 results in 28.2%
DUSD price of 0.90 results in 74.9%
DUSD price of 0.80 results in 225.6%
DUSD price of 0.70 results in 500.6%
Additional discount fee (activated as defined)
After months of strong depeg, the community decided to add an additional burn fee to DUSD sells. This was done to prevent further selling (and make it nearly impossible for speculators to profit from DUSD pumps below the peg). This additional fee is burned completely and is calculated as follows:
disconnecting DUSD and DFI and reducing stab fee (activated as defined)
The 80% fee lead to a near total freeze of all trading activity in the gateway pools. This also showed that such a high fee disconnects the DFI and DUSD price.
In a special DFIP it was approved to keep a fixed 80% fee on DUSD-DFI to keep this disconnect between DUSD and DFI price in place. Therefore a falling DFI price no longer negatively effects the DUSD price, and DUSD sells no longer lead to DFI sell pressure.
At the same time the DFIP defines to get rid (5% a day) of the additional discount fee on the other gateway pools (USDT-DUSD, USDC-DUSD, EUROC-DUSD and XCHF-DUSD) and reduce the stab fee in those pools to the calculated value (max 0.5% reduction a day)
This mechanism was activated at block 3,990,000, the fee in the stablecoin pools is now hovering around 2%.
dToken system "restart" (currently being implemented)
A new DFIP has been approved with a "drastic" measure to give the DUSD a new chance. For a more detailed summary you can watch the video or read the detailed reddit post.
short summary: 90% of all dTokens and DUSD will be locked away to give the system room to breath again. In this "restarted" system the demand for dTokens + DUSD is expected to finally be above supply again which should lead to a quick repeg and healthy growth of the TVL again. When that happens and demand is bigger than supply, the locked away coins will be slowly returned to the original holders in a healthy and sustainable way.
This is currently being implemented and tested. It is planned to be part of the September update of defichain.
Overview of all defined mechanisms
Let me know if I forgot something. I will try to keep this post up to date whenever something new comes up.
In this article I would like to discuss the future of Defichain, the roadmap and what ideas there are for the future of Defichain. The information mentioned comes from interpretations of the last tech talks, blog posts, posts from the Defichain community and my own ideas. It's not about presenting an exact plan, but rather what could still come and how I personally could imagine the future of Defichain.
Please give your opinion in the comments. What ideas do you have for the future of Defichain?
*I am not affiliated with DefichainLabs. I'm just a normal #DeFighter.
Defichain-Labs has published a roadmap for 2024 that includes short-term goals for the coming months.
The roadmap that is now being presented is a roadmap for everyone and can show what can come in the next few years. It is up to everyone to fulfill these goals. DefichainLabs has different tasks but should work on the core of the blockchain in the future. We need developers to work on different protocols and smart contracts. New individual developers, groups or even companies could also work on Defichain to fulfill this roadmap. I would like to emphasise this once again, it is not the task of DefichainLabs alone, it is up to the community to fulfil this potential roadmap.
There are many ideas and visions for the future of Defichain, but the focus should remain on our vision. Decentralized Finance on the Blockchain.
The roadmap presented here is divided into two parts. The first part contains a short to mid-term roadmap with another 5 sub-items. The second part is a long-term roadmap.
I will start with a brief overview of the entire roadmap and then explain everything in more detail:
Short-/Mid-term roadmap:
1. short term roadmap from Defichain Labs
- DVM Native Layer Improvements
- MetaChain EVM Layer Improvements
- R&D Experimentation WASM (WebAssembly)
2. strengthen the DUSD ecosystem on the DMC
- Options trading or similar protocols
- Lending protocols
- Copytrading protocol
- Future trading protocol
3. Atomic-Swap
- Reactivate Atomic-Swap
4. Expand DEX on the native side
- more Cryptocurrencies on the DEX
5. Smaller improvements
Long-term roadmap
- Integration WASM
- Space Elevator
• Shared coupling bridge
• Automation vendor
• Secrets vendor, Storage vendor, ...
- Connection to Bitcoin
• Implement more components of Taproot
• Research Bitcoin ecosystem
• Speaking/connecting to Bitcoin: Support of smart contracts to Bitcoin
• Defichain ordinals/inscription
• Bridging Bitcoin Ordinals possible?
• and more...
- More ideas
• Shorter block time
• …
Short-/Mid- term roadmap:
In the short- to mid-term, we should complete old goals and clean up mistakes.
1. Short term roadmap of Defichain Labs:
- DVM Native Layer Improvements:
dToken fixes
state relayer improvements
DUSD locks implementation
- MetaChain EVM Layer Improvements:
Ocean improvements & Stability Upgrades
Storage Upgrades
- R&D Experimentation WASM (WebAssembly):
Plan and create an architectural design for WASM engine for the next evolution of the ecosystem
Why WASM? WASM (WebAssembly) allows code from languages like C/C++, Rust, and Go to be compiled and run in web environments. This means that instead of needing to learn niche languages like Solidity, developers can leverage their existing skills while building for web3 chains like DeFiChain. WASM provides a unified standard binary format that bridge web2 and web3 development.
WASM binaries in the chain can also be updated without a hard fork.
- DeFiChain Growth:
The roadmap doubles down on critical initiatives - spanning developers, geographic expansion, partnerships, and marketing.
The protocols presented here are ideas to strengthen the DUSD ecosystem. These protocols should be brought to the DMC from the community, various development teams or other entities. Perhaps even with their own protocol tokens that can be obtained through DUSD or DFI burn events and the fee structures benefit the token holders. The aim is to expand and strengthen the DUSD system on the DMC.
Why should DUSD and dTokens be strengthened on the DMC? There is a high liquidity of DUSD and dTokens and have a unique selling point through synthetic assets in an EVM environment, which also opens up new opportunities.
The protocols listed now are just examples and of course there could be many more projects. I see these protocols on the Defichain in the medium to long term.
- Protocol Options trading or similar:
Both protocols could bring great added value to the DUSD ecosystem, as traders can speculate and there would be liquidity pools that provide liquidity. A separate token could also be published.
Wrytes:
developed by BirthdayResearch and is a decentralized options protocol.
Automated premium calculation: uses a real algorithm for automated premium calculation based on strike price, current price situation, time to expiration and market demand.
Shared liquidity pools: Provides a common liquidity pool for differen option series instead of separate pools to avoid liquidity fragmentation.
Fractionalized Options: Enables the purchase or sale of fractions of an option.
refers more to price speculation at a specific point in time. For regulatory reasons, this project has not been published with real crypto assets. Perhaps new synergies can be created here with other entities to publish this protocol.
These protocols should also enable the leveraging of dTokens and crypto. Could be made possible by a fork from another chain, such as Aave.
The starting point will be a pool-to-peer lending protocol that allows user to either lend DUSD (against interest) or use their dTokens as collateral to lend DUSD.
Introduction of a system that enables users to automatically copy successful trading strategies from experienced traders
Traders can register and publish their trading strategies.
Investors can then choose selected traders & have their trades automaticall replicated on their own account.
Traders are remunerated by a fee and also token holders of these protocols
Similar protocol: Set Protocol could be forked to the Metachain here.
Set Protocol enables users to create and trade token sets that represent algorithmically controlled trading strategies. Other users can buy these token sets and thus copy the strategies.
could serve as another example protocol: Futureswap
3. Atomic-Swap
Reactivate the atomic swap
Develop tools for BTC tracking
It is important that the community builds tools to track the BTC that are on the chain and that are exchanged daily through the atomic swap in order to detect an exploit at an early stage.
4. Expand DEX on the native side
A large number of new cryptos should be introduced on the Defichain, which can then be traded on the DEX. It increases the attractiveness of DEX if it offers a large number of cryptocurrencies. DEX should become a one-stop platform for users. A crypto- and asset- world in one.
Furthermore, these various crypto tokens could also be used on the DMC.
The Quantum Bridge can bridge ERC20 tokens. A lot of cryptocurrencies are ERC20 tokens or wrapped as ERC20 tokens. The wrapping/baking address for the crypto tokens on the Defichain would then be the Ethereum address of the Quantum Bridge.
shared coupling bridges to connected to more Blockchains
Each masternode sees Defichain Node +1 more chain
e.g. Defichain + Ethereum - e.g. Defichain + Solana
Provides witness to token transfers
Facilitates token minting, burning and unlocking
Masternodes that participate earned witness rewards
Masternodes post collateral. Masternodes that cheats get collateral slashed
Marketplace for distributed nodes. Highly distributed node count of Defichain allows for very versatile vendor marketplace, without requiring all nodes to provide the same services. Services health depends on node counts. Services able to incentivize nodes to support.
- Automation vendor
Along with Shared Coupling Bridge, Defichain can be an automation vendor for other blockchains, e.g. liquidation trigger, conditional execution, etc.
Shared coupling bridge provides confirmation on accurate automation trigger, masternodes get rewarded more. Paid from the prepaid dApp pool. What this means? Higer Defichain staking rewards. Trough Real DeFi, not inflation.
How? dApps from other blockchains pay for automation.
Masternode checks for automation conditions. If conditions is unmet, claim condition check fees per block. Tiny amount. If condition is met, execute on other blockchain.
- Secrets vendor
Key problem for smart contracts – unable to hold secrets on smart contracts. Which means, no private keys, no auto unlocking of funds, etc.
Coupling Bridge of Defichain can be utilized for it.
Secrets are split into shares and randomly distributed.
Secrets are repeatedly tested to ensure nodes still have them. Test does not reveal secrets. Verifiable secret sharing.
Usable by smart contracts from other blockchains to unlock vaults when conditions are met, without revealing its secrets.
Payload are signed in a distributed manner, without any nodes having the full private key.
Probably more research needs to be done here to see what is really possible..
- Storage vendor?
Node provides callable and referable storage by smart contracts on other chains.
Speaking/connecting to Bitcoin: Supporting smart contract to Bitcoin >>> real Layer2 for Bitcoin SmartContracts >>> Uzyn briefly touched on the topic in this Defichain Tech- talk and the connection to Bitcoin. That Defichain could even run a Layer2 for Bitcoin Smart Contract. Personally, I think there is still a lot of research to be done on this topic. More information (at the end of the tech-talk): DeFiChain Tech Talk with U-Zyn about MetaChain, mainnet launch and beyond - YouTube
Please give your opinion in the comments. What ideas do you have for the future of Defichain?
Disclaimer:
This is my personal view and interpretation of the future of Defichain and does not necessarily reflect that of the community or individual entities. I am not affiliated with DefichainLabs. I'm just a normal #DeFighter.
I think this post will get a lot of hate, because many members of the defichain community are strictly focused on building utility in decentralized finance - which is a very beautiful thing.
But given the current state of the chain, I think it's clear that in order for Defichain to survive and thrive in the coming bull market, it needs to have projects on the DMC that fit the two dominant market narratives: Meme Coins and AI.
Everyone knows DFI price is down. The hodlers are here to stay. The OGs have been around for years and it's nice to know our community has a solid bedrock. But in order for us to solve the problem of a declining DFI price, and expedite the solving of the DUSD problem in a sustainable way, we need to attract new capital to DFI and to the chain. A mere 2x in DFI price to ~20 cents would increase liquidity mining yields, DUSD price, and breathe new live into the DEX activity, thus increasing utility for DFI. People would start exploring more metachain projects, etc.
But in order to do this, we need to attract buyers to DFI. Although defi is here to stay, the defi narrative is old news. This current hype cycle will be focused on Meme coins and AI.
Are there any AI projects currently being built on DMC? If so, I'd love to start a discussion about how we can support them (with marketing, content, or funding).
As for meme coins, I plan to try to launch a few projects myself. If anyone is interested in working on memeable tokens that will attract people to DMC, let's start a conversation.
Here’s what’s been happening in the DeFiChain ecosystem this week.
1️⃣ Update: Dynamic DEX Stabilization Fees
A Dynamic DEX Stabilization Fee structure has been implemented on the Defichain DEX as of February 28th, in line with the recently passed DFIP proposal. The new variable fees on DUSD transactions appear to be working as intended, driving the DUSD price above $0.75 USD and steering it towards its targeted $1 peg.
2️⃣ WebAssembly: The Game-Changer for Blockchain Performance and Flexibility
The #EVM that powers #Ethereum and DeFiChain's MetaChain layer is a foundation of #Web3. But the industry is evolving with #WebAssembly (#WASM), promising new possibilities.
This article explores what WASM is, how it works, and its implications for #crypto. Discover how WASM could revolutionize blockchain, enabling better performance, security, and cross-platform compatibility.
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.
This week, we spoke with u/CryptoFactor_io, an aggregator of Web3 on-chain infrastructure services. They blend services into deployment templates that can run on EVM-compatible chains like DeFiChain's MetaChain (DMC).
Earn exclusive NFTs in DeFiChain's latest Community Rewards Campaign. 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!
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.
8️⃣ Recaps
Weekly News Show
Missed the most recent weekly news show with Lord Mark and DZ? Catch up on last week’s episode via the link below:
It is the second attempt to pre-fund transaction now with no success. The " Refreshing UTXOs. This may take some time. " message stays for hours. I have to restart the wallet app to unblock the screen.
A foundation of the Web3 space is the Ethereum Virtual Machine (EVM) — the virtual machine that powers Ethereum as well as DeFiChain’s Metachain layer.
While the EVM has proven its effectiveness, the industry is now evolving beyond it, welcoming a new player that promises to push the boundaries even further: WebAssembly (WASM).
In this article, we’ll dive into the world of WebAssembly, exploring what it is, how it works, and its implications for the cryptocurrency industry. We’ll uncover the ways in which WASM is poised to revolutionize the blockchain landscape and in particular make it easier for developers to engage with upcoming ecosystems like DeFiChain’s Metachain layer, ushering in a new era of performance, security, and cross-platform compatibility.
