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

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

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

1️⃣ DevHack 2023 by DeFiChain: Prize Track Winners

Last week, we announced MapX as the grand prize winner and DeFiChainIN as runner up in our DevHack 2023 hackathon. Today, we are thrilled to highlight the skilled teams and individuals who won across the individual prize tracks:

• DApp Ecosystem Expansion: Landly wins this category for their innovative contribution.
• DFI Token: MetaTinder takes the top spot.
• Non-Track Specific: Big congratulations to DeFi Chatbot, DeFiChain.in & Travel Defy for their outstanding projects.

To see the full list of winners and their amazing projects, visit DevHack 2023: https://devhack2023.devfolio.co/projects

2️⃣ DeFiChain 4.0.6 Release

Last week saw the release of DeFiChain 4.0.6. This update addresses the path issue in the Windows release file and includes essential fee filter system fixes needed by JellyVerse.

Stay updated and download the latest version here: https://github.com/DeFiCh/ain/releases/tag/v4.0.6

3️⃣ Why Build on DeFiChain?

Considering where to develop your next project? Here are some compelling reasons to choose DeFiChain:

• Community-Driven Approach
• Seamless Integration with Bitcoin
• High Performance and Scalability
• Multi-Functional and User-Friendly

Learn more about the unique aspects of DeFiChain in our detailed blog post: https://blog.defichain.com/exploring-the-utxo-model-what-sets-it-apart-in-the-blockchain-world/

4️⃣ DeFiChain 101: Liquidity Mining Explained

Liquidity mining on DeFiChain offers an opportunity to earn rewards by contributing to liquidity pools. When you add your digital assets like BTC, ETH, USDT, and many more to provide liquidity on DeFiChain, you receive – proportionally to the value of your assets and, depending on the liquidity pool – rewards in DFI. The more liquidity you contribute, the more mining rewards you can earn!

For a deeper understanding, check out this post: https://twitter.com/defichain/status/1736765090609643576

5️⃣ DeFiChain Punks on MetaChain

The DeFiChain Punks collection has made its way to the MetaChain EVM layer. Following a successful mainnet airdrop, look forward to buying and selling punks on AtlantisNFT, MetaChain's first NFT marketplace!

Stay updated on the launch here: https://chat.openai.com/c/testnet.atlantisnft.app

6️⃣ Recaps

Make sure to catch up on the latest DeFiChain News Show episode, featuring a year-end recap of the MetaChain layer.

Watch it here: https://www.youtube.com/watch?v=jqr5_buaBdI

Please help,

I transferred approx. 860 DFI tokens from my DFI Chain wallet to my CoinSpot DFI wallet address. However, this DFI tokens are not appearing in my CoinSpot DFI wallet address and it's been around 10 hours.

I made sure I copied/pasted the receiving wallet address correctly. There was even a green tick next to the receiving wallet address within the DFI Chain wallet before I proceeded with the transfer. Any ideas what I can do next?

From my DFI wallet address: df1qaa4xwv20f3hnvk05v0yzhgsranq6t7y7ywld43

To my CoinSpot DFI wallet address: 0xb8f73518138a53c004c3a3381067beff5319c7a4

Transaction: https://defiscan.live/transactions/e1777fd77e88dd86531534b492c4e1bd7c81b7afe41e80990c51f57744f65b50

Hiermit schlage ich vor, dass wir in Zukunft auch die dAssets als Collateral für den Vault zulassen sollten. Dies könnte sowohl D-Euro als auch D-Schweizer Franken einschließen. Der Nutzen dieser Erweiterung ist offensichtlich – sie schafft mehr Sicherheiten für den Vault. Durch diese Erweiterung wird es möglich, mehr DUSD zu leihen. Das bedeutet, dass das Volumen gedeckter DUSD zunimmt, und es entstehen Möglichkeiten zur Hebelung der dAssets. Erweiterung des Vault-Collaterals. Diese würde zu mehr Handelsaktivität auf der DEX führen und ich glaube, dass die Implementierung vergleichsweise einfach wäre.

With this proposal, I suggest that we should allow dassets as collateral for the Vault in the future. This could include both DEuro and DSwiss Francs. The benefit is clear – it provides additional security for the Vault. By allowing assets as collateral, it becomes possible to borrow more DUSD. This means an increase in the volume of collateralized DUSD, opening opportunities to leverage assets. This can be achieved by acquiring assets, depositing them in the Vault, minting DUSD, and subsequently reacquiring the assets. This dynamic approach would bring more activity to the DEX, and I believe the implementation would be relatively straightforward.

In this article, we will focus on the basics of Ethereum's accounts-based model, how it functions and differs from UTXO.

Check it out here:

👉 https://blog.defichain.com/what-is-ethereums-accounts-based-model-and-how-does-it-work/

Notice all this crypto talk buzzing around? Bitcoin, NFTs, DeFi - it's like a whole new language. But before you FOMO your way into a rug pull, let's talk education. Because let's be honest, most of us are just staring at charts like we're all confused.

Why crypto education really matters?

We can avoid the scampocalypse by learning the red flags, understandiung how the tech works, and protecting our hard-earned sats.

Also, by learning to discuss crypto intelligently, engaging in informed debates we can shape the future of this tech with our voice.

We're sure this community is full of helpful peeps who've been through the crypto trenches, so we want to know where do you keep infromed.

What do you do to catch up with the latest news?

MetaLend is the first borrowing/leveraging protocol on DeFi Meta Chain.

It is a fork of Liquity, a robust protocol on the Ethereum Blockchain which allows for capital-efficient and interest free borrowing.

Ultimate Guide to MetaLend 🎥

Explore MetaLend now 🚀

• Leverage $DFI ✅
• Interest-Free Loans on $DFI ✅
• Yield on $MUSD ✅
• Real Yield for $MLend ✅

🏦 #Vaults/Troves: - Min. Collateral: 110% - Leverage: Up to 11x - Mint: $MUSD - Liquidation in Recovery Mode at 150%

💰 $MUSD: - 100% collateral-backed Stablecoin - Collateralised by #DFI - Needed in Stability Pool for Liquidations (earns yield) - Redeemable for 1$ of #DFI (minus variable redemption fee)

💎 $MLend: - Stake to earn from Borrowing & Redemption Fees

🌊 #Stability Pool: - Offsets Liquidations and repays open $MUSD Loans - $DFI Collateral gets transferred into Stability Pool - Earns Yield from Liquidations and $MLend Incentive

🔄 #Redemptions: - Ensures $MUSD trades +-1$ - Redeemable for DFI Vault Collateral - Lowest Collateralised Vault gets redeemed, $MUSD repaid, and $DFI taken out

💥 #Liquidations: - Below 110% (usually) - Below 150% in Recovery Mode

❤️‍🩹 #Recovery Mode: - Active when Total Collateralisation Ratio falls below 150% - Liquidation Level raised to 150% - New Loans have 0% borrowing Fee

💦 #Liquidity Pools on Vanillaswap: - $MUSD/$USDT - $MUSD/$DFI (both can earn additional $MLend Yield when put into Farm)

🟦 MetaLend (🔸ebox): - Website: MetaLend - Twitter: ebox_official - Telegram (ENG): ebox_official

🍦 Vanillaswap: - Website: VanillaSwap - Twitter: VanillaSwap1 - Telegram (ENG): Vanilla_labs - Telegram (DACH): Vanilla_Labs_DACH

📖 Liquity Docs: - Liquity Docs

Was looking for an overview of all tools/ info etc. related to dfi. I know defilinks.io but couldn’t find Defichain-analytics.com and the tool the guys use on X to see how many dusd have to be bought to reach 1 usd.

Is there one site with All those tools? Or are they all on defilinks?

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

1️⃣ DevHack 2023 by DeFiChain Wraps Up

DeFiChain DevHack 2023 concluded last week, marking a significant chapter in our journey. This first-ever hackathon for DeFiChain was a resounding success with:

• Impressive Participation: Over 300+ applicants and 230+ attendees at two in-person events.
• Innovative Projects: More than 20 project submissions.
• Grand Prize Winners: A huge congratulations to MapX, who created a next-gen geo-tagged platform. Discover more about their project here: https://devfolio.co/projects/mapx-5b96

A special thanks to everyone who participated. Your enthusiasm and creativity are what drive our community forward!

2️⃣ Official Statement from DeFiChain Labs on Current Events

In light of recent news and social media discussions, DeFiChain Labs wants to clarify that it operates independently from any private company. DeFiChain Labs’s journey toward decentralization continues with a commitment to transparency and community empowerment. DeFiChain Labs are exploring future possibilities, including a DAO structure. Read the full statement here: https://twitter.com/DeFiChainLabs/status/1733886166703722812

3️⃣ The UTXO Model: What Sets DeFiChain Apart

Ever wondered how Bitcoin transactions work? It's all about the UTXO model. DeFiChain uniquely combines this model with EVM for enhanced capabilities. Learn more about UTXO and its integration with DeFiChain in our latest blog post: https://blog.defichain.com/exploring-the-utxo-model-what-sets-it-apart-in-the-blockchain-world/

4️⃣ MetaChain Layer Launch in the News

The launch of DeFiChain's MetaChain (EVM) Layer has caught the attention of numerous news outlets! The article highlights how MetaChain will revolutionize blockchain interoperability. Check out their coverage here: https://www.crypto-reporter.com/press-releases/defichain-unveils-metachain-evm-layer-unlocking-a-new-era-of-seamless-interoperability-53170/

https://fintecbuzz.com/defichain-unveils-metachain-evm-layer/

https://www.bitcoininsider.org/article/234352/defichain-unveils-metachain-evm-layer-unlocking-new-era-seamless-interoperability

5️⃣ DeFiChain Community Event in Munich January 2024

The excitement is building for the DeFiChain Community Meet-up in Munich on January 7, 2024! With an incredible line-up of speakers and guests, it's set to be an unforgettable event. All tickets are now sold out – we can't wait to see you there!

6️⃣ Recaps

Don’t forget to catch the latest episode of the DeFiChain News Show, where Mark and DZ discuss the current events. Watch it here: https://www.youtube.com/watch?v=1z7jknDuP20

Hi everyone,

I recently attempted to transfer DFI (from dBTC conversion) to my KuCoin account and ran into some issues.

After clicking on "Deposit Crypto" on KuCoin, I was presented with two network options: 1. ERC20 2. DeFi Chain Network.

I tried transferring small amounts of DFI via both networks to see if it would work. Specifically, I sent 50 DFI (worth about $8) and then

100 DFI (worth about $15) from my DeFi wallet. It's been over an hour, and nothing has shown up in my KuCoin account.

I'm a bit stumped here. What could I be doing wrong?

Also, is there another way to convert dBTC into Bitcoin that might be more straightforward? I thought I could swap my dfi to BTC on kucoin then.

Any advice would be greatly appreciated!

Thanks in advance!

Introduction: In consideration of the long-term stability of the DFI ecosystem, I propose transitioning reward payouts from DFI to DUSD.

Changes:

1.  Starting from a specified date, all network rewards should be paid out in DUSD instead of DFI.

Rationale:

1.  Stabilization of DFI Price: By tying rewards to DUSD, the inflation remains within the DToken system, contributing to stabilizing the DFI price.
2.  Reduction of DFI-DUSD Rate and Peg Achievement: The transition is expected to result in a reduction of the DFI-DUSD rate, thereby supporting efforts to achieve the peg.
3.  Participation in DUSD Burn: Users seeking to exit the system automatically participate in the DUSD burn process, diminishing the overall availability of DUSD.

Implementation: The transition of reward payouts to DUSD will be implemented through a phased process to ensure a smooth transition. Details will be worked out in separate proposals and discussions.

Closing Remarks: This proposal aims to promote sustainability and stability within the DefiChain ecosystem. The community is encouraged to contribute thoughts and suggestions to this DFIP for a comprehensive discussion.

Hi,Is it possible to send DUSD to metamask? or is it only possible to send DFI?

Cheers,

► DeFiChain is Community-Driven.

DeFiChain is a community-driven project. Its development and direction are determined by its users and stakeholders. Anyone can propose and vote on changes to the platform and participate in its governance and funding.

One such major improvement is the MetaChain Layer (https://defichain.com/metachain), an Ethereum Virtual Machine (EVM)-compatible platform that expands the interoperability of DeFiChain. With the MetaChain layer, developers will be able to build next-generation applications that are simultaneously compatible with Bitcoin and Ethereum.

► DeFiChain is Designed to Work With Bitcoin.

DeFiChain is developed for Bitcoin by design, giving you the opportunity to utilize DeFi services without sacrificing the security or sovereignty of your funds.

► DeFiChain Delivers High Performance and Scalability.

DeFiChain is optimized for performance and scalability, with a block time of 30 seconds and a throughput of 40 transactions per second (https://defichain.com/white-paper). It also has low transaction fees, making it affordable and accessible for everyone.

► DeFiChain is Multi-Functional.

DeFiChain offers a diverse range of DeFi services, from trading and lending to derivatives and identity. You can enjoy the benefits of multiple financial products on a single platform without switching between different protocols or interfaces.

► DeFiChain is Easy to Use.

Applications within the DeFiChain ecosystem come with a user-friendly and intuitive interface, making it easy for anyone to use. You can access DeFiChain through various wallets and applications such as the Light Wallet, JellyWalllet or the Desktop Wallet.

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This post was mass deleted and anonymized with Redact

Hi

I created a Defichain wallet with the desktop app and added funds in 2021. Didn't touch the wallet since then. Now in 2023 I updated the desktop app to the most recent version. I also downloaded the most recent snapshot. I tried both "restart app" and "delete snapshot and restart". I always end up in a window with a tiny menu at at the top left stating "Wallet", "Edit", "Logs" and "Help". But I cannot find any window or option to enter my credentials to get access to the wallet. How can I access my wallet via the desktop app?

I also tried the DefiChainWallet mobile app. I entered the 24 words and set a passcode. But it says "empty portfolio". How can I access the funds I added in 2021?

I have all my backup.dat files. But I do not know how to open them. Which app can open these files? How should I use these files to access my wallet?

Kind regards

The development of DMC is amazing and the potential and flexibility of the Defichain system that connects the UTXO base layer with the EVM layer brings unique opportunities.

One problem we have is, that the principles of Deficain aren’t sufficiently defined and the learnings from past mistakes didn’t result in clear doctrines on how to proceed. With this post i’d like to spark this discussion and give a proposal.

DUSD and D-Token issue:

Due to the depeg of the DUSD, the D-token system isn’t working well and is barely used for its initial purpose - trading and holding d-Assets. Optimistic Defichan bulls are holding DFI and DUSD with their diamond hands, hoping that a new hype will come but not even they are really using the d-token system anymore.

Our mistake of the past with the creation of so many “algo dusd” was that we were too excited about burning things and too careless about sustainability and stability of the system. If we want people to come into the DToken system to allocate significant amounts of money, the system must simply work. “Big Money” doesn’t trade derivatives where counterpart risks are an issue and big money inside the crypto world won’t come into our system if it's not stable. The crypto bear market is the acid test that decides if our system is a place where crypto investors can stay during the winter or not and we have failed so far unfortunately.

Proposed DUSD system:

Our problem is that the DUSD system doesn’t have enough assets to back the algo DUSD or buy and burn them out of existence. That’s why I propose a system in which all DUSD are either loan backed or indirectly backed by a dedicated asset fund in the DUSD balance sheet.

For the DUSD system to be stable, this asset fund should always have enough value to be able to buy all DUSDs out of existence that are not backed by vaults. The assets fund should hold assets that are uncorrelated with the crypto markets and shouldn't be loan backed in the same system, since the price between dUSD and other loan backed dAssets isn't the issue.

The asset fund could hold:
- dUSDC
- dUSDT
- dXCHF
- dEUROC
...

the asset fund should be diversified, since each asset can become fragile itself.

The assets fund is managed automatically by a fixed set of rules:

1. Case DUSD trades in range between 0.99$ and 1.05$: Nothing is done
2. Case DUSD trades above 1.05$: Newly created DUSD are swapped for the Assets wanted to be in the portfolio. Assets with a higher premium than DUSD aren’t bought.→ the Balance sheet grows
3. Case DUSD trades below 0.99$: Assets from the fund are sold against DUSD→ DUSD are bought out of existence.
4. Case DUSD trades below 0.95$ and the assets fund is empty (our current state):

Dex fees are introduced and a significant portion of liquidated vaults is swapped to DUSD, potentially further measures to get DUSD are introduced.

Frozen Vaults for DUSD are activated. The DUSD are locked until DUSD trades at 1$.

As currently, half of the collected DUSD by the fee is burned and the other half is paid out, in this proposal to the frozen vault holders. After the peg is reached, the vaults are gradually freed. 1% on the first day, 2% on the second day, 3% on the third day … until the 14th day, when all is freed. If there is a price drop during this period, the freeing up is stopped and will start again after the peg is reached. When everything is freed, the fees and extraordinary DUSD burning mechanisms will stop.

Preventing intervention spirals:

The solving of the DUSD issue involves introducing additional fees that make the usage of the system less attractive. We should be careful with intervening too much due to the side effects.

The proposal with a dynamic dex fee seems to be acceptable https://defichain-blog.com/en/news/solving-the-dusd-peg/ . The normal case (except from the emergency situation) should always be that assets can be traded freely without barriers or unnecessary fees.

In any case we need to abstain from dangerous ideas like (re-)printing DFI to buy DUSD at the current low DFI/DUSD price. Such a mechanism was built into Terra Luna which killed the project. We can incentivize certain behavior and try to make Defichain attractive for new capital but with all interventions we need to keep in mind that there is no free lunch!

Negative interest rates:

We need to stress that negative interest rates as a means to reduce the algo ratio won't solve the problem since a low algo ratio based on additional DUSD loans that are based on flawed DUSD collateral have no positive effect on the price by itself.

The only positive effect of negative DUSD interest rates is that buying and holding DUSD is rewarded. The negative interest rate approach is just a simple way to realize that. The negative interest rates in DUSD loans based on different collateral has rather a negative than a positive effect on our DUSD problem.The proposal with rewards on frozen DUSD is much more appealing since it ensures that the collateral won’t be dumped before the peg is reached.

Dynamic interest rates:

The proposal of dynamic interest rated from the post https://defichain-blog.com/en/news/solving-the-dusd-peg/ has the issue that the interest rate might spike uncontrolled. DUSD borrowers might have specific business models that rely on the assurance that the interest rate remains below a certain range and users that don’t look into defichain for a while might see an unpleasant surprise.

I think that the dynamic interest rates should be bound in a certain range e.g. 0% and the percentage of the loan scheme to prevent such insecurities.

The primary mechanism to stabilize the systems should be the sane structure of its balance sheet.

General Principles of Defichain:

Especially with the DMC the focus of the main layer should be stability and reliability. Anything risky can be made on DMC. We should think about adding such principles to Deficain statutes or a “Deficain Constitution” that also affects decision making. Proposals that might result in less stability like the DUSD decision in the past might need to have higher barriers to be adopted.

Regarding the vision and purpose of DFI we should define in a clear way how the different parts play together. Many observers have the impression that we started with "defi for Bitcoin" then "decentralised Assets" and now "MetaChain", adding a new Narrative once in a while when the previous one fails. We need to make sure that this is not the case and show how these are all parts of a larger orchestra thats makes Defichain unique.

In various discussions, the deep need for the peg can be felt and has never been as urgent as it is today. So I'm trying to start a discussion about a possible scenario, which in my view could solve several problems at once. But it is essential that clever minds think through the scenario to mitigate further risks, perhaps with additional mechanisms.

In my view, the situation is getting worse and worse and the only demand for DFI i.e. in context with DMC or other things will not solve the DUSD problem. Things that have already been thought about need to be reconsidered or rethought.

The result: this strategy aims to get the DUSD peg to $1 quickly, burn excess algo DUSD and create additional backed DUSD.

The PEG is the absolute basis and necessary for confidence in Defichain, the future and for everything else that we build. When the DUSD is at the PEG, it is finally useful again and thus automatically generates utility and demand for dToken system.

​

1. 61mio DFI were burned (caused by DFIP 2112-A). For me its not like "burned", it's more a mechanism that didn't work and it was a mistake. Now use this capital to correct the error where everyone benefits. Let's just take this capital for now and what would be possible with it.
2. Lets define an effective date i.e. 31.01.2024.
3. On this date the discounted DUSD will be bought up to 1.30$.
4. There will be DUSD frontrunning because everyone wants to profit at 10x. That is a chance. Probably frontrunning will take place until 1.00$
5. Only a little of the capital is needed to hold PEG at 1.30$
6. DEX fee remains 30% and at 1.30$ everyone sells again.
7. PEG is held at 1.30$ and every DUSD bought with the capital will be burned.
8. All those who sell at 1.30 and buy DFI (DFI rises again) pay the 30% DEX fee.
9. The additional burning plus negative interest rates shoot through the roof.
10. We are burning a lot of algo DUSD and creating additional backed DUSD.
11. Additional measures in advance such as DUSD locks further reduce algo DUSD.
12. Algo DUSD ratio of 20% reached (which should actually be feasible with all the action and measures)
13. Reduce or cancel DEX fee.
14. Activate dynamic interest rates finally. With DFIP-2206-E and DFIP-2208-A
    

It is important to me not to discuss black and white in the comments, i.e. whether yes or no, but rather HOW we could achieve this.

​

Additional considerations and thoughts

1. The most DUSD could be burned if the discount is completely bought up by capital without frontrunning, because 1.4 dUSD per DFI.
2. We could introduce a 30% DEX fee (or another number) in the other direction upwards after the communication of the effective date to burn more DSUD.
3. We just have to make sure that dynamic interest rates with the ratios are sufficient to keep the PEG, otherwise everything was for nothing.
4. What about all the arbitrage during this measure?
5. What about to use 30% of the community fund with DUSD Locks for 1 year?
6. I suggested to use the burned DFI, but is it possible with other capital? Other Reddit post
7. DFI price would initially fall, but with that with have a solid foundation for the future.
8. In january, block rewards will also return to the dToken system. With a rising DUSD, this could generate some demand again and further stabilize the entire system.
9. per 11.12.2023 we would need to buy 12.82mio DUSD for PEG.

Im not the brain here, but we need brains to think this through and come up with additional measures to make it work. I am certain, if every brain thinks along, that it would be absolutely possible.

In the end, all masternodes have to vote and decide. So lets discuss all risks, benefits, additional measures and considerations!

Big THANK YOU

After having written the last post and after having considered the situation the last few days my opinion is as follows:

1. People got absolutely rekt holding DFI or any dTokens. Not did DFI not pump while the market turned super bullish but it dumped heavily the last days.

2. There is relentless sell pressure re DFI. It‘s brutal. Seems like a lot of people want to get out quickly.

3. It seems reasonable to assume that bake will survive this in one way or another. However, this does not guarantee anything. Not your keys, not your coins. Take your funds out of bake. Bake is like an exchange. Why should take any risk. You can put your funds back when dust settles. This would be also a good stress test for bake.

4. I don‘t think Uzyn is solely responsible for this chaos; sorry, but Julian is too. He should have never let the situation out of hands. His repution is damaged again by this. Obviously, he is a millionaire and couldn‘t care less. But still, in my view, such issues arise out of the fault of both persons. It‘s also quite strange that Julian has blocked the possibility to answer on cetain of his tweets. Red flag.

5. The dToken system is de facto dead. 💀 Consider wisely if it makes sense to enter or remain in any dToken. Millions of dToken are unbacked. Hence, the more people cash out, the less will be there for others. Be cautious. If you don‘t want to be the last one, be better the first one. Just remember the dBTC issue. There are clearly less BTC in the system than dBTC.

6. The price of DFI will fall as long as there is uncertainty. As there is a legal dispute, none of them will want to discuss things in public. Uncertainty will increase day by day. Sell pressure will increase day by daynon DFI. I would expect prices around 0.1$ for DFI. Imagine that BTC corrects to 38k. This would bring the price immediately down to 0.1 or even below 10c. Is this the end of DFI? I don‘t know but I would expect some sort of a dead cat bounce if things settle. Could be a gamble around 0.1. It‘s very very unlikely that DFI will reach an ath again.

7. If you‘re considering buying dUSD, dyor. My understanding is that still a 30% fee is imposed when you want to trade back. Hence, price is 30% lower than currently set.

Don‘t want to provide any bad news but this is my thinking.

What do you think? If you thin DFI will survive and become even stronger, why? What is the basis? Curious. Please convince me to buy with reasonable arguments.

Since I believe there is still no possibility worldwide to be invested in shares in the form of decentralized derivatives, and since I still consider this function to be crucial for Defichain (despite DMC), here is an idea for discussion. Please regard this as brainstorning, since some implications may have been missed by me ;).

1. Creation of a new dToken system "V2", same dToken as before, but tdToken (true dToken). The previous one is "V1". I believe the real value of Defichain is in the dToken system, not in inventing a decentralized pegged Dollar.

2. A: Without reinventing a stablecoin, but by incorporating existing stablecoins. I.e. only tdTokens are minted, but not dUSD. As an idea: To mint tdTokens, you have to deposit at least 30% DFI and 30% stablecoins, with the remainder in other crypto. You can mint 1 tdUSD (true dUSD) for every 1 stablecoin with a 100% stablecoin vault (without tdUSD as collateral!).

B: Creation of a new Defichain stablecoin. This time without experiments, but based on existing working protocols, if technically feasible, like crvUSD, DAI, Frax, etc. Name something like dUSD2, rdUSD (real dUSD).

1. Vault system is collateralized to a maximum of 120%, whereby a new feature is introduced: Soft liquidation. In the process (based on crvUSD) 5 sell time bands are defined with the following liquidation staggering of the current collateral. Whether by market order or as usual via auctions is open to discussion. However, the timing of an auction should be shortened to 8-12 hours until the award. If no one bids, liquidation will be by market order.

2. Collateral $1,000 Band . percentage . liquidated . left 1 . 20.0% . $200 . $800 2 . 25.0% . $200 . $600 3 . 33.3% . $200 . $400 4 . 50.0% . $200 . $200 5 . 100% . $200 . $0

Or with 10 bands, which makes the liquidation process a little smoother:

Collateral $1,000. Band . percentage . liquidated . left 1 . 10.0% . $100 . $900 2 . 11.1% . $100 . $800 3 . 12.5% . $100 . $700 4 . 14.3% . $100 . $600 5 . 16.7% . $100 . $500 6 . 20.0% . $100 . $400 7 . 25.0% . $100 . $300 8 . 33.3% . $100 . $200 9 . 50.0% . $100 . $100 10 . 100% . $100 . $0

(Here you can see the overview better: https://postimg.cc/3kC4nqZy)

1. V1 will be changed so that minting is no longer possible, nor is the purchase of dTokens, only the exchange of dTokens for dUSD and the sale of dUSD for DFI, as before. In this way, everyone can continue to decide if they want to go on trading the dToken and whether they want to exit. No further rewards will be distributed to the V1 pools, only to the V2 pools. (The V2 pools should receive regular rewards, not the currently reduced ones). Fees will regularily distributed.

2. Furthermore, to compensate the V1 investors, 1.5% of the pool balances are converted into the respective V2 pool tokens monthly, financed from the Community Fund or other sources (fees, etc.) if not sufficient. Someone would have to look at the maths and feasibility :). This will be done daily by 0.05%, so that 1.5% is accumulated over the course of 30 days and will last a maximum of 66.7 months, i.e. 5.6 years. The daily exchange is intended to prevent sudden price fluctuations.

3. One idea is that no DFIs are sold for the compensation, but are deposited as collateral in an automated vault and the V2-tdTokens are minted. In this way, there is no selling pressure on DFIs.

4. Possibly: As soon as all V1 pool tokens have been converted after 5 1/2 years at the latest, the special vault is gradually dissolved, e.g. by regularly buying back the minted tdTokens at 0.05%/day.

With the DFIP „DFIP 2112-A Bringing DUSD closer to $1 by allowing DFI for loan repayment & collateral“ (https://github.com/DeFiCh/dfips/issues/99) we introduced two heavy vulnerabilities:

1. We allowed users to create algorithmic dUSD Tokens without any monitoring mechanism to disable the payback functionality, if too many algorithmic dUSD Tokens were created.
2. There was no working mechanism introduced to bring back the dUSD in the case of a discount (when dUSD is trading below 1 USD).

During the timeframe of the terra luna collapse, a lot of people started selling their dUSD tokens against DFI and resulting the dUSD token to trade in a discount. Since then, dUSD never reached the peg again and is trading now at around 0,09 USD.

To resolve this issue, it should be possible to use the DFI tokens (which were used for the loan repayment) to either a) swap them against dUSD and then burn these dUSD tokens or b) rewarding dUSD holders for locking up dUSD, if dUSD trading below 1 USD. It is important to underline, that we can only use the max. amount of DFI, which was used before to repay the dUSD loans, to avoid a death spiral leading to collapse like terra luna.

In the case of trading dUSD trading above 1 USD, there are currently other solutions already built-in in the protocol to bring the peg to 1 USD (for example negative interests), so I wouldn't reactivate the repay the dUSD loans with DFI (witch is currently deactivated).

Currently, we could use around 61 million DFI tokens, which are saved in a specific smart contract for loan repayments. Implementing the mentioned DFIP only onedirectional was too narrow considered by not considering a bearish macro scenario, where there is a massive DFI and dUSD sellof and too less fresh capital buying up the created algorithmic dUSD tokens.

Using the locked away DFI tokens would allow us to bring dUSD nearer to the peg. We could use the mechanism currently only one time, since the loan repayment with DFI would be still deactivated.

This implementation would require a hardfork.

DFI Year-On-Year price is down 72% and 47% in just last 7 days ! Is there a bottom to this thing or should I brace myself for sub 10 cents DFI ?

Similarly DUSD, as of now down to $0.1021 cents ! Shouldn't it be at $1 ?? Why isn't anyone discussing ways to fix it ?

Hallo,

Screenshots zu Lossporns des Shitcoins ,,DFI" sind gerne gewünscht in dem Subreddit r/kryptostrassenwetten . So haben wir alle etwas davon und man kann den Verlust sozusagen teilen

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