DAI

flarept1

Aave going down means billions lost, DAI would instantly die. Most smaller protocols would die too. It's very low risk. But nothing is too big to die(unless you're tether, then you're never going down)

jekpopulous2

It’s nothing new. Maker DAO (for example) does the same thing. When you stake DAI what’s really happening is that they’re swapping your DAI for US treasury bonds and giving you sDAI (which earns ~5% interest from the bonds). The largest RWA protocol right now is ONDO and they similarly buy US treasury bonds to back USDY. This is just Binance hopping on the RWA train.

JBudz

With a little forward vision I am sure you could see that as the older systems become depreciated, like the old cheque book, new more robust systems will take over, including all the services that already exist. Choose your provider. Choose your stable coin. DAI for example is a decentralised stable coin.

Iamdonedonedone

I do not know much about DAI, but anyone using ANY crypto is miles ahead. I just think, why take a chance? I am very comfortable with DASH and Bitcoin. I know I can trust those blockchains.

advias

Right, I mainly use DAI for this reason. It is partly centralized now but I don't believe they have any blacklists. Either way, I would never get on one of those lists so I'm not concerned for it.

advias

Could just use DAI, LUSD, RAI, and others for stable spending though. A lot of places do no accept them but they are going to at some point

usercos187

USDT, USDC, USDP, are centralized stable tokens and can be frozen. DAI is the only stable token which can't be frozen.

usercos187

DAI stable token can't be frozen... (on ethereum, on bsc, on solana)

usercos187

yes. Tehther can freeze any USDT tokens. Circle can freeze any USDC tokens. that is why it is better to use different wallets and use DAI when possible.

pituitary_monster

- You put in some DAI in a pool. - The pool places it to earn interest in the compound protocol. - Instead of paying off interest to everyone, the pool just pays off the interest to a single address. - The interest is the lottery price and your ticket is your DAI. - You can withdrawn your DAI at any time. So you just lend your DAI to the pool, you did not spend anything to paricipate. I did this some time ago, but seems the page is down or something https://pooltogether.com/ Anyway, its a cheaper and loseless alternative to this miner thingy.

coinfeeds-bot

tldr; In a notable event in the crypto market, a scammer returned $9.27 million in DAI stablecoins to a victim 10 months after stealing a total of $24.23 million worth of crypto assets through a phishing attack. The theft, which involved rETH and stETH coins, occurred in September last year. The return of a portion of the stolen funds was reported by Scam Sniffer, an anti-scam platform in the crypto sector. This incident highlights the increasing sophistication of phishing scams in the cryptocurrency community. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by Shippior. > [Polygon](https://polygon.technology/)(Ticker: [MATIC](https://www.coingecko.com/en/coins/polygon)) is an Ethereum Virtual Machine ([EVM](https://ethereum.org/en/developers/docs/evm/)). It is a sidechain from Ethereum for the solving the scaling problem that Ethereum has by offering faster and more cheap transactions by offering transaction to settle on the Polygon chain and to be later settled on the Ethereum chain. It was created in 2017 by an Indian based team as the Matic network and was later rebranded to Polygon. > > Polygon has a maximum supply of 10 billion tokens. The [total breakdown](https://www.coinbase.com/institutional/research-insights/research/tokenomics-review/polygon-matic-scaling-solutions#:~:text=Polygon's%20token%20MATIC%20is%20primarily,validator%20nodes%20to%20earn%20rewards.) of this supply is 19% Initial exchange offering, 16% to the team, 4% to advisors, 12% to staking rewards, 21.86% to the foundation and 23.33% for future investments in the ecosystem. This shows that there is a lot of funds available for development of the blockchain. This is also seen in the number of developers that chose to work on Polygon. The number of developers working on Polygon has grown to over 1100, which is 16x more than in [2018](https://twitter.com/theweb3sharma/status/1615592481047080961). > > Contrary to other blockchains, polygon is not just one blockchain but a number of blockchains under one hood, each of them focused on a different application. This allows Polygon to compete on several (almost all markets at the same time). It has prominent applications for DeFi, NFTs and [web3 gaming](https://techcrunch.com/2023/03/20/polygon-and-immutable-partner-to-help-onboard-more-gamers-and-developers-into-web3/). For instance it is at the moment a [very populair chain for NFTs] > (https://ambcrypto.com/polygons-nft-space-is-booming-as-trade-count-surges-thanks-to/) and many projects from other chains want to migrate to Polygon. At the moment it has roughly the same volume as [Solana, but both are still dwarfed by the NFT volume of ETH.]( > https://dune.com/rchen8/opensea) > > The most well-known DEXs on the Polygon chain are [Uniswap](https://app.uniswap.org/#/swap), [Quickswap](https://quickswap.exchange/#/) and [1Inch](https://app.1inch.io/#/137/simple/swap/MATIC/DAI). These are all very high profile DEXs. Because Polygon is based on Solidity, just like Ethereum, it is easy to implement it on a DEX that was originally built for Ethereum. This also helps the Polygon chain in general as contract or updates that are developped for Ethereum can be implemented with very little effort. Even if that was a problem, Polygon has currently the fastest growing [number of developers](https://dailyhodl.com/2023/01/19/polygon-cosmos-and-two-ethereum-rivals-have-surged-over-400-in-one-metric-says-crypto-firm/#:~:text=According%20to%20the%20report%2C%20Polygon,2%2C000%20and%20Solana%20about%202%2C250.). > > > Polygon has impressed several multinationals to host their web3 introductions. Starbucks has hosted their rewards program called [Starbucks Odyssey program](https://odyssey.starbucks.com/) on the chain. Reddit has chosen Polygon chain to host their [Avatar NFTs](https://decrypt.co/112783/reddit-nfts-surge-as-polygon-based-avatars-reach-millions-of-new-users) which has seen a large influx of new wallets for MATIC. > > Due to all the hype for MATIC it continues to grow. More than [11 million active wallets](https://polygon.technology/blog/polygon-insights-for-2022) were present in Q4 2022, an increase of 115% compared to Q4 2021. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

fussl

Why you need to sell? Just deposit into Maker and borrow DAI.

CointestMod

#TRON Pro-Arguments Below is a TRON pro-argument written by a deleted user. > ##**PROs** > > **Disclaimer**: There is little reliable information about Tron that isn't from Tron DAO or Justin Sun interviews. The official [Tron DAO Medium](https://trondao.medium.com/) site doesn't provide links to sources in the blog, making it harder to fact check and analyze. Many of its sources are from Weibo posts that are inaccessible beyond the Great Firewall of China. Tron's documentation and community posts provide way less information than that of other major blockchain projects. Nevertheless, I'm make do with what I can get. > > ####**Performance and Consensus** > > **High throughput and fast finality** > > Blocks are produced every 3s with a max size of 2M bytes. Consensus is completed using DPoS with a fault tolerance of 70% (9/27) Super Respresentatives that act as validators. There are over 350 SR/validator candidates who vote on the 27 SRs each 6 hours. > > - **High Throughtput**: **Tron can reach a max throughput of 2600 TPS with full 2M blocks** and its current balance of actual transactions, which is really high for an EVM-compatible blockchain. > - My calculations used [Tronscan data](https://tronscan.org/#/blockchain/blocks): Basic TRX and token transfers use 250-500 Bandwidth. The current average bandwidth for each transaction is currently 298, which is not that much higher than the lower end for basic transactions. > - Each bandwidth is 0.850 bytes, so you can fit 7800 average transactions in a single 3s block. Tron officially claims that it can reach 2000 TPS, so they're giving a conservative estimate. > - Even filled with 350-550 bandwidth swaps for [SunswapV2Router02](https://tronscan.org/#/contract/TKzxdSv2FZKQrEqkKVgp5DcwEXBEKMg2Ax/transactions), that's 1400 TPS on the lower end. That's way faster swaps than [everything other than Algorand](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581). > - The tradeoff is that consensus is highly centralized (only 27 validators), and that the validators have very high requirements like having 32 CPU cores and 64GB of memory. > - In comparison, Ethereum's Layer 1 in comparison, can only do ~15 TPS average (59 TPS for basic transfers, 7 TPS for Uniswap v3 swaps). > - **Fast Finality in 3s**: All 27 SRs are currently playing friendly with each other, so for all practical purposes, finality is in 3 seconds. (Deterministic finality occurs every 27 blocks, or 81 seconds). > > **Network Energy usage** > > Tron's estimated annual energy usage for 2022 is estimated to be 1.7 kWh, or the **energy usage of [15 average US households](https://decrypt.co/108115/tron-network-energy-use-matches-that-of-15-us-households-ccri-report)**. This puts it slightly lower than the consumption of Avalanche, Algorand, Cardano, and Solana's networks. Its carbon footprint is also 4x lower than the others. And it uses 100000x less energy than Bitcoin. > > ####**Ease of Basic Utility** > > **Transaction fees are covered for FREE by freezing TRX** > > Tron has a unique design for transaction fees instead of using gas. Transactions fees are divided into bandwidth (pays for data bytes) and energy (pays for computations). All transactions require bandwidth while only contracts need energy. > > The benefit is that you get **FREE bandwidth and energy by freezing TRX**, a process similar to staking. You currently receive about 28 energy and 1 bandwidth daily [per frozen TRX](https://tronstation.io/calculator). Basic smart contracts use 350 Bandwidth (requires freezing 330 TRX) and 14.7K energy (requires staking 520 TRX). At current TRX prices, **if you freeze $2500 worth of TRX, you could perform 100 free basic transactions daily**. In addition, each account receives [1.5 kb of bandwidth daily](https://developers.tron.network/docs/resource-model) (originally 5 kb) for free even without freezing TRX, which is good for ~5 transactions. Though I suspect users can abuse this by creating new accounts. > > Any transaction fees in excess of the free energy and bandwidth are burned. This is why TRX is **currently deflationary by ~0.3% annually** (excluding burns for the USDD minting process). > > **Settlement layer for Tether** > > According to Blockchain's [Sep 2022 interview with Justin Sun](https://podcasts.apple.com/us/podcast/exploring-tron-with-justin-sun-and-blockchain-com/id1536699961), **the original purpose of Tron was to act as a stablecoin settlement network and reserve network for Tether** (USDT). Sure enough, the bulk of DeFi on Tron's network deal with stablecoins. As of Sep 2022, [45% of Tether is now held on Tron](https://defillama.com/stablecoin/tether). And with Ethereum transaction fees being so high, Tron has become an attractive platform for USDT dApps. > > ####**DeFi Usages** > > **Smart Contracts** > > Tron's VM (TVM) is EVM-compatible and uses Solidity for the smart contract language. It is also Turing-complete. Thus, it's simple to rewrite EVM contracts for TVM. > > - **Tron's [DeFi TVL is massive at $5.4B](https://defillama.com/chains), putting at 3rd place after Binance Smart Chain**. > - Though it is a bit suspicious though that 99% of Tron's DeFi TVL are on 3 projects that are literally named after Justin Sun, though that could just be because it's very new. In comparison, Ethereum's DeFi is spread over hundreds of dApps. > - Tron SUN's [Liquidity Pool](https://sun.io/#/home) provides very high interest for USDD-USDT pairs at 5-70% APY. Back in June-July, you could gain triple-digit APY on Tron DeFi with stablecoins while the governance rewards boosts were still active. > > ####**Sustainable Tokenomics for TRX** > > - TRX's tokenomics have a steady, permanent issuance for validators, so it's **sustainable**. All transaction fees are burned. This isn't too different than Ethereum's tokenomics model (other than that Ethereum only burns part of the fee). > - TRX has a total circulating supply of about 92B, which is noticeably lower than their highest supply of 102B before the TRX-to-USDD minting protocol. TRX suddenly became [deflationary on Oct 27, 2021](https://tronscan.org/#/data/stats2/circulation). Supply has fallen about 10% since then due to token burns, making **TRX one of the most deflationary cryptocurrency in the top 30**. > - If we ignore the token burns from USDD minting, each day, ~5M TRX is minted, ~6M is burned (from transaction fees). **This gives net issuance of 1M TRX burned daily, or 0.3% annual deflation.** > > **Good TRX price action during the bear market** > > Tron's native token, TRX, is currently #15 in marketcap as of Sept 2022 with a [marketcap of $6B](https://www.coingecko.com/en/coins/tron). Its value has held up surprisingly well during the bear market, barely falling 50% while the rest of cryptocurrencies fell closer to 70-90%. **TRX is up 2x vs Bitcoin over the past year** during the bear market, pumping especially hard right around the launch of USDD and introduction of major staking and governance boost projects. > > ####**USDD, a hybrid stablecoin without UST's flaws?** > > **USDD is a hybrid collateralized/algorithmic (seigniorage) stablecoin** launched in May 2022 on Tron's network. It is one of the biggest focuses on the Tron roadmap. It was originally designed as a purely-algorithmic stablecoin based on Terra's now-failed Luna and UST stablecoin. After the collapse of Luna UST, the Tron DAO Reserve (TDR) made several changes to USDD to avoid a similar failure: > > **Differences between UST and USDD** > > 1. The biggest difference is that USDD is 300% collateralized with 11B TRX, 14K BTC, 100M USDT, and 1M USDC [Source](https://usdd.io/). **This makes USDD one of the most collateralized stablecoins.** In comparison, DAI is only 120% collateralized, and USDT and USDC are only 100% collateralized. > 1. TDR controls how much USDD can be minted or redeemed, so it's not purely algorithmic. Thus, TDR has full power to stop it from crashing. > 1. USDD will be released in multiple phases. The current phase only allows for a minting of 2B USDD. This is to limit USDD from growing astronomically quickly like with UST. [[Source](https://trondao.medium.com/improving-usdd-from-lessons-learned-e2600d7f94ad)] > 1. You're probably wondering what's the catch. There is a Peg Stability Module (PSM) that allows minting of USDD by burning TRX. You can current burn TRX for minting USDD, but **you cannot redeem USDD for TRX** [[source](https://twitter.com/TheImmutable/status/1536930692344401921)]. There is no liquidity on any of the [PSM smart contracts](https://docs.usdd.io/psm/the-psm#psm-contracts) to trade USDD for anything else. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_tron) to find submissions for other topics.

CointestMod

#TRON Pro-Arguments Below is a TRON pro-argument written by a deleted user. > ##**PROs** > > **Disclaimer**: There is little reliable information about Tron that isn't from Tron DAO or Justin Sun interviews. The official [Tron DAO Medium](https://trondao.medium.com/) site doesn't provide links to sources in the blog, making it harder to fact check and analyze. Many of its sources are from Weibo posts that are inaccessible beyond the Great Firewall of China. Tron's documentation and community posts provide way less information than that of other major blockchain projects. Nevertheless, I'm make do with what I can get. > > ####**Performance and Consensus** > > **High throughput and fast finality** > > Blocks are produced every 3s with a max size of 2M bytes. Consensus is completed using DPoS with a fault tolerance of 70% (9/27) Super Respresentatives that act as validators. There are over 350 SR/validator candidates who vote on the 27 SRs each 6 hours. > > - **High Throughtput**: **Tron can reach a max throughput of 2600 TPS with full 2M blocks** and its current balance of actual transactions, which is really high for an EVM-compatible blockchain. > - My calculations used [Tronscan data](https://tronscan.org/#/blockchain/blocks): Basic TRX and token transfers use 250-500 Bandwidth. The current average bandwidth for each transaction is currently 298, which is not that much higher than the lower end for basic transactions. > - Each bandwidth is 0.850 bytes, so you can fit 7800 average transactions in a single 3s block. Tron officially claims that it can reach 2000 TPS, so they're giving a conservative estimate. > - Even filled with 350-550 bandwidth swaps for [SunswapV2Router02](https://tronscan.org/#/contract/TKzxdSv2FZKQrEqkKVgp5DcwEXBEKMg2Ax/transactions), that's 1400 TPS on the lower end. That's way faster swaps than [everything other than Algorand](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581). > - The tradeoff is that consensus is highly centralized (only 27 validators), and that the validators have very high requirements like having 32 CPU cores and 64GB of memory. > - In comparison, Ethereum's Layer 1 in comparison, can only do ~15 TPS average (59 TPS for basic transfers, 7 TPS for Uniswap v3 swaps). > - **Fast Finality in 3s**: All 27 SRs are currently playing friendly with each other, so for all practical purposes, finality is in 3 seconds. (Deterministic finality occurs every 27 blocks, or 81 seconds). > > **Network Energy usage** > > Tron's estimated annual energy usage for 2022 is estimated to be 1.7 kWh, or the **energy usage of [15 average US households](https://decrypt.co/108115/tron-network-energy-use-matches-that-of-15-us-households-ccri-report)**. This puts it slightly lower than the consumption of Avalanche, Algorand, Cardano, and Solana's networks. Its carbon footprint is also 4x lower than the others. And it uses 100000x less energy than Bitcoin. > > ####**Ease of Basic Utility** > > **Transaction fees are covered for FREE by freezing TRX** > > Tron has a unique design for transaction fees instead of using gas. Transactions fees are divided into bandwidth (pays for data bytes) and energy (pays for computations). All transactions require bandwidth while only contracts need energy. > > The benefit is that you get **FREE bandwidth and energy by freezing TRX**, a process similar to staking. You currently receive about 28 energy and 1 bandwidth daily [per frozen TRX](https://tronstation.io/calculator). Basic smart contracts use 350 Bandwidth (requires freezing 330 TRX) and 14.7K energy (requires staking 520 TRX). At current TRX prices, **if you freeze $2500 worth of TRX, you could perform 100 free basic transactions daily**. In addition, each account receives [1.5 kb of bandwidth daily](https://developers.tron.network/docs/resource-model) (originally 5 kb) for free even without freezing TRX, which is good for ~5 transactions. Though I suspect users can abuse this by creating new accounts. > > Any transaction fees in excess of the free energy and bandwidth are burned. This is why TRX is **currently deflationary by ~0.3% annually** (excluding burns for the USDD minting process). > > **Settlement layer for Tether** > > According to Blockchain's [Sep 2022 interview with Justin Sun](https://podcasts.apple.com/us/podcast/exploring-tron-with-justin-sun-and-blockchain-com/id1536699961), **the original purpose of Tron was to act as a stablecoin settlement network and reserve network for Tether** (USDT). Sure enough, the bulk of DeFi on Tron's network deal with stablecoins. As of Sep 2022, [45% of Tether is now held on Tron](https://defillama.com/stablecoin/tether). And with Ethereum transaction fees being so high, Tron has become an attractive platform for USDT dApps. > > ####**DeFi Usages** > > **Smart Contracts** > > Tron's VM (TVM) is EVM-compatible and uses Solidity for the smart contract language. It is also Turing-complete. Thus, it's simple to rewrite EVM contracts for TVM. > > - **Tron's [DeFi TVL is massive at $5.4B](https://defillama.com/chains), putting at 3rd place after Binance Smart Chain**. > - Though it is a bit suspicious though that 99% of Tron's DeFi TVL are on 3 projects that are literally named after Justin Sun, though that could just be because it's very new. In comparison, Ethereum's DeFi is spread over hundreds of dApps. > - Tron SUN's [Liquidity Pool](https://sun.io/#/home) provides very high interest for USDD-USDT pairs at 5-70% APY. Back in June-July, you could gain triple-digit APY on Tron DeFi with stablecoins while the governance rewards boosts were still active. > > ####**Sustainable Tokenomics for TRX** > > - TRX's tokenomics have a steady, permanent issuance for validators, so it's **sustainable**. All transaction fees are burned. This isn't too different than Ethereum's tokenomics model (other than that Ethereum only burns part of the fee). > - TRX has a total circulating supply of about 92B, which is noticeably lower than their highest supply of 102B before the TRX-to-USDD minting protocol. TRX suddenly became [deflationary on Oct 27, 2021](https://tronscan.org/#/data/stats2/circulation). Supply has fallen about 10% since then due to token burns, making **TRX one of the most deflationary cryptocurrency in the top 30**. > - If we ignore the token burns from USDD minting, each day, ~5M TRX is minted, ~6M is burned (from transaction fees). **This gives net issuance of 1M TRX burned daily, or 0.3% annual deflation.** > > **Good TRX price action during the bear market** > > Tron's native token, TRX, is currently #15 in marketcap as of Sept 2022 with a [marketcap of $6B](https://www.coingecko.com/en/coins/tron). Its value has held up surprisingly well during the bear market, barely falling 50% while the rest of cryptocurrencies fell closer to 70-90%. **TRX is up 2x vs Bitcoin over the past year** during the bear market, pumping especially hard right around the launch of USDD and introduction of major staking and governance boost projects. > > ####**USDD, a hybrid stablecoin without UST's flaws?** > > **USDD is a hybrid collateralized/algorithmic (seigniorage) stablecoin** launched in May 2022 on Tron's network. It is one of the biggest focuses on the Tron roadmap. It was originally designed as a purely-algorithmic stablecoin based on Terra's now-failed Luna and UST stablecoin. After the collapse of Luna UST, the Tron DAO Reserve (TDR) made several changes to USDD to avoid a similar failure: > > **Differences between UST and USDD** > > 1. The biggest difference is that USDD is 300% collateralized with 11B TRX, 14K BTC, 100M USDT, and 1M USDC [Source](https://usdd.io/). **This makes USDD one of the most collateralized stablecoins.** In comparison, DAI is only 120% collateralized, and USDT and USDC are only 100% collateralized. > 1. TDR controls how much USDD can be minted or redeemed, so it's not purely algorithmic. Thus, TDR has full power to stop it from crashing. > 1. USDD will be released in multiple phases. The current phase only allows for a minting of 2B USDD. This is to limit USDD from growing astronomically quickly like with UST. [[Source](https://trondao.medium.com/improving-usdd-from-lessons-learned-e2600d7f94ad)] > 1. You're probably wondering what's the catch. There is a Peg Stability Module (PSM) that allows minting of USDD by burning TRX. You can current burn TRX for minting USDD, but **you cannot redeem USDD for TRX** [[source](https://twitter.com/TheImmutable/status/1536930692344401921)]. There is no liquidity on any of the [PSM smart contracts](https://docs.usdd.io/psm/the-psm#psm-contracts) to trade USDD for anything else. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_tron) to find submissions for other topics.

Redac07

Read the article, it's not about decentralized project (my bad about terra) it's about companies issuing stablecoins. They can't stop stablecoins as DAI from being used in a decentralized way.

Kike328

the issue is the legit stablecoins such as DAI, which cannot comply because they are essentially decentralized

CointestMod

#TRON Pro-Arguments Below is a TRON pro-argument written by a deleted user. > ##**PROs** > > **Disclaimer**: There is little reliable information about Tron that isn't from Tron DAO or Justin Sun interviews. The official [Tron DAO Medium](https://trondao.medium.com/) site doesn't provide links to sources in the blog, making it harder to fact check and analyze. Many of its sources are from Weibo posts that are inaccessible beyond the Great Firewall of China. Tron's documentation and community posts provide way less information than that of other major blockchain projects. Nevertheless, I'm make do with what I can get. > > ####**Performance and Consensus** > > **High throughput and fast finality** > > Blocks are produced every 3s with a max size of 2M bytes. Consensus is completed using DPoS with a fault tolerance of 70% (9/27) Super Respresentatives that act as validators. There are over 350 SR/validator candidates who vote on the 27 SRs each 6 hours. > > - **High Throughtput**: **Tron can reach a max throughput of 2600 TPS with full 2M blocks** and its current balance of actual transactions, which is really high for an EVM-compatible blockchain. > - My calculations used [Tronscan data](https://tronscan.org/#/blockchain/blocks): Basic TRX and token transfers use 250-500 Bandwidth. The current average bandwidth for each transaction is currently 298, which is not that much higher than the lower end for basic transactions. > - Each bandwidth is 0.850 bytes, so you can fit 7800 average transactions in a single 3s block. Tron officially claims that it can reach 2000 TPS, so they're giving a conservative estimate. > - Even filled with 350-550 bandwidth swaps for [SunswapV2Router02](https://tronscan.org/#/contract/TKzxdSv2FZKQrEqkKVgp5DcwEXBEKMg2Ax/transactions), that's 1400 TPS on the lower end. That's way faster swaps than [everything other than Algorand](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581). > - The tradeoff is that consensus is highly centralized (only 27 validators), and that the validators have very high requirements like having 32 CPU cores and 64GB of memory. > - In comparison, Ethereum's Layer 1 in comparison, can only do ~15 TPS average (59 TPS for basic transfers, 7 TPS for Uniswap v3 swaps). > - **Fast Finality in 3s**: All 27 SRs are currently playing friendly with each other, so for all practical purposes, finality is in 3 seconds. (Deterministic finality occurs every 27 blocks, or 81 seconds). > > **Network Energy usage** > > Tron's estimated annual energy usage for 2022 is estimated to be 1.7 kWh, or the **energy usage of [15 average US households](https://decrypt.co/108115/tron-network-energy-use-matches-that-of-15-us-households-ccri-report)**. This puts it slightly lower than the consumption of Avalanche, Algorand, Cardano, and Solana's networks. Its carbon footprint is also 4x lower than the others. And it uses 100000x less energy than Bitcoin. > > ####**Ease of Basic Utility** > > **Transaction fees are covered for FREE by freezing TRX** > > Tron has a unique design for transaction fees instead of using gas. Transactions fees are divided into bandwidth (pays for data bytes) and energy (pays for computations). All transactions require bandwidth while only contracts need energy. > > The benefit is that you get **FREE bandwidth and energy by freezing TRX**, a process similar to staking. You currently receive about 28 energy and 1 bandwidth daily [per frozen TRX](https://tronstation.io/calculator). Basic smart contracts use 350 Bandwidth (requires freezing 330 TRX) and 14.7K energy (requires staking 520 TRX). At current TRX prices, **if you freeze $2500 worth of TRX, you could perform 100 free basic transactions daily**. In addition, each account receives [1.5 kb of bandwidth daily](https://developers.tron.network/docs/resource-model) (originally 5 kb) for free even without freezing TRX, which is good for ~5 transactions. Though I suspect users can abuse this by creating new accounts. > > Any transaction fees in excess of the free energy and bandwidth are burned. This is why TRX is **currently deflationary by ~0.3% annually** (excluding burns for the USDD minting process). > > **Settlement layer for Tether** > > According to Blockchain's [Sep 2022 interview with Justin Sun](https://podcasts.apple.com/us/podcast/exploring-tron-with-justin-sun-and-blockchain-com/id1536699961), **the original purpose of Tron was to act as a stablecoin settlement network and reserve network for Tether** (USDT). Sure enough, the bulk of DeFi on Tron's network deal with stablecoins. As of Sep 2022, [45% of Tether is now held on Tron](https://defillama.com/stablecoin/tether). And with Ethereum transaction fees being so high, Tron has become an attractive platform for USDT dApps. > > ####**DeFi Usages** > > **Smart Contracts** > > Tron's VM (TVM) is EVM-compatible and uses Solidity for the smart contract language. It is also Turing-complete. Thus, it's simple to rewrite EVM contracts for TVM. > > - **Tron's [DeFi TVL is massive at $5.4B](https://defillama.com/chains), putting at 3rd place after Binance Smart Chain**. > - Though it is a bit suspicious though that 99% of Tron's DeFi TVL are on 3 projects that are literally named after Justin Sun, though that could just be because it's very new. In comparison, Ethereum's DeFi is spread over hundreds of dApps. > - Tron SUN's [Liquidity Pool](https://sun.io/#/home) provides very high interest for USDD-USDT pairs at 5-70% APY. Back in June-July, you could gain triple-digit APY on Tron DeFi with stablecoins while the governance rewards boosts were still active. > > ####**Sustainable Tokenomics for TRX** > > - TRX's tokenomics have a steady, permanent issuance for validators, so it's **sustainable**. All transaction fees are burned. This isn't too different than Ethereum's tokenomics model (other than that Ethereum only burns part of the fee). > - TRX has a total circulating supply of about 92B, which is noticeably lower than their highest supply of 102B before the TRX-to-USDD minting protocol. TRX suddenly became [deflationary on Oct 27, 2021](https://tronscan.org/#/data/stats2/circulation). Supply has fallen about 10% since then due to token burns, making **TRX one of the most deflationary cryptocurrency in the top 30**. > - If we ignore the token burns from USDD minting, each day, ~5M TRX is minted, ~6M is burned (from transaction fees). **This gives net issuance of 1M TRX burned daily, or 0.3% annual deflation.** > > **Good TRX price action during the bear market** > > Tron's native token, TRX, is currently #15 in marketcap as of Sept 2022 with a [marketcap of $6B](https://www.coingecko.com/en/coins/tron). Its value has held up surprisingly well during the bear market, barely falling 50% while the rest of cryptocurrencies fell closer to 70-90%. **TRX is up 2x vs Bitcoin over the past year** during the bear market, pumping especially hard right around the launch of USDD and introduction of major staking and governance boost projects. > > ####**USDD, a hybrid stablecoin without UST's flaws?** > > **USDD is a hybrid collateralized/algorithmic (seigniorage) stablecoin** launched in May 2022 on Tron's network. It is one of the biggest focuses on the Tron roadmap. It was originally designed as a purely-algorithmic stablecoin based on Terra's now-failed Luna and UST stablecoin. After the collapse of Luna UST, the Tron DAO Reserve (TDR) made several changes to USDD to avoid a similar failure: > > **Differences between UST and USDD** > > 1. The biggest difference is that USDD is 300% collateralized with 11B TRX, 14K BTC, 100M USDT, and 1M USDC [Source](https://usdd.io/). **This makes USDD one of the most collateralized stablecoins.** In comparison, DAI is only 120% collateralized, and USDT and USDC are only 100% collateralized. > 1. TDR controls how much USDD can be minted or redeemed, so it's not purely algorithmic. Thus, TDR has full power to stop it from crashing. > 1. USDD will be released in multiple phases. The current phase only allows for a minting of 2B USDD. This is to limit USDD from growing astronomically quickly like with UST. [[Source](https://trondao.medium.com/improving-usdd-from-lessons-learned-e2600d7f94ad)] > 1. You're probably wondering what's the catch. There is a Peg Stability Module (PSM) that allows minting of USDD by burning TRX. You can current burn TRX for minting USDD, but **you cannot redeem USDD for TRX** [[source](https://twitter.com/TheImmutable/status/1536930692344401921)]. There is no liquidity on any of the [PSM smart contracts](https://docs.usdd.io/psm/the-psm#psm-contracts) to trade USDD for anything else. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_tron) to find submissions for other topics.

coinfeeds-bot

tldr; A cryptocurrency whale used Ethereum (ETH) as collateral to borrow $34 million in USDC for leverage trading, signaling a bullish market outlook. The whale withdrew 30,000 ETH from Bitfinex, deposited 20,000 ETH into the Spark protocol as collateral, and borrowed 34 million DAI. This was then swapped for USDC and deposited into a Binance address. The operation demonstrates the use of decentralized finance (DeFi) for complex trading strategies, highlighting the potential for amplified gains but also increased risks of liquidation. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

ugohdit

update from lykke, including a record from the "town hall meeting": "Dear customers, partners and friends of Lykke, As promised, I am sending you the second issue of our weekly newsletter in response to the unauthorised access of the Lykke cryptocurrency exchange that took place on June 4. First and foremost, I would like to thank you for attending the first Town Hall Meeting last Tuesday. Over 100 people joined the conference call, during which we addressed a wide range of topics, many of which we were able to answer on the spot. You can access a recording of the entire call here( https://youtu.be/_7Bu-wlrsMM ) to the questions raised during the call, as well as those submitted to us over the past few weeks, are available here. ( https://www.lykke.com/incident-updates/faq ) Many of you have inquired about the measures we have taken in response to the attack and our chances of recovering the stolen funds. Let me elaborate on this topic. As reported last week and during the Town Hall Meeting, we have enlisted the expertise of various professionals and secured the services of the blockchain intelligence firm Match Systems to investigate the incident. Measures were immediately taken to markup the hacker's addresses, trace the movement of stolen funds, and notify key market participants about this incident in order to blacklist the hacker's addresses. The hacker exchanged the bulk of the stolen funds for DAI tokens. The stolen funds are currently located on several dozen cryptocurrency addresses belonging to the hacker. The IP addresses that were used by the hacker when connecting to the Lykke exchange’s infrastructure and when making transactions on various exchanges have been identified. Currently, a series of measures is being implemented in collaboration with the law enforcement agencies to establish the identity of the hacker. Please understand that, in the interest of the ongoing investigations, we cannot disclose additional details to avoid jeopardizing our efforts. However, we hope to be able to disclose additional information soon. In parallel, Lykke is working tirelessly day and night to get our systems up and running again, step by step. I appreciate your patience during this time. In our next newsletter, we will share details on the first milestones we have achieved. If you have further questions, please send me an email to Richard.Olsen@Lykke.com. I will respond promptly. With kind regards, Richard Olsen CEO and founder" received by email 28-06-2024

Kike328

or no more DAI…

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by Shippior. > [Polygon](https://polygon.technology/)(Ticker: [MATIC](https://www.coingecko.com/en/coins/polygon)) is an Ethereum Virtual Machine ([EVM](https://ethereum.org/en/developers/docs/evm/)). It is a sidechain from Ethereum for the solving the scaling problem that Ethereum has by offering faster and more cheap transactions by offering transaction to settle on the Polygon chain and to be later settled on the Ethereum chain. It was created in 2017 by an Indian based team as the Matic network and was later rebranded to Polygon. > > Polygon has a maximum supply of 10 billion tokens. The [total breakdown](https://www.coinbase.com/institutional/research-insights/research/tokenomics-review/polygon-matic-scaling-solutions#:~:text=Polygon's%20token%20MATIC%20is%20primarily,validator%20nodes%20to%20earn%20rewards.) of this supply is 19% Initial exchange offering, 16% to the team, 4% to advisors, 12% to staking rewards, 21.86% to the foundation and 23.33% for future investments in the ecosystem. This shows that there is a lot of funds available for development of the blockchain. This is also seen in the number of developers that chose to work on Polygon. The number of developers working on Polygon has grown to over 1100, which is 16x more than in [2018](https://twitter.com/theweb3sharma/status/1615592481047080961). > > Contrary to other blockchains, polygon is not just one blockchain but a number of blockchains under one hood, each of them focused on a different application. This allows Polygon to compete on several (almost all markets at the same time). It has prominent applications for DeFi, NFTs and [web3 gaming](https://techcrunch.com/2023/03/20/polygon-and-immutable-partner-to-help-onboard-more-gamers-and-developers-into-web3/). For instance it is at the moment a [very populair chain for NFTs] > (https://ambcrypto.com/polygons-nft-space-is-booming-as-trade-count-surges-thanks-to/) and many projects from other chains want to migrate to Polygon. At the moment it has roughly the same volume as [Solana, but both are still dwarfed by the NFT volume of ETH.]( > https://dune.com/rchen8/opensea) > > The most well-known DEXs on the Polygon chain are [Uniswap](https://app.uniswap.org/#/swap), [Quickswap](https://quickswap.exchange/#/) and [1Inch](https://app.1inch.io/#/137/simple/swap/MATIC/DAI). These are all very high profile DEXs. Because Polygon is based on Solidity, just like Ethereum, it is easy to implement it on a DEX that was originally built for Ethereum. This also helps the Polygon chain in general as contract or updates that are developped for Ethereum can be implemented with very little effort. Even if that was a problem, Polygon has currently the fastest growing [number of developers](https://dailyhodl.com/2023/01/19/polygon-cosmos-and-two-ethereum-rivals-have-surged-over-400-in-one-metric-says-crypto-firm/#:~:text=According%20to%20the%20report%2C%20Polygon,2%2C000%20and%20Solana%20about%202%2C250.). > > > Polygon has impressed several multinationals to host their web3 introductions. Starbucks has hosted their rewards program called [Starbucks Odyssey program](https://odyssey.starbucks.com/) on the chain. Reddit has chosen Polygon chain to host their [Avatar NFTs](https://decrypt.co/112783/reddit-nfts-surge-as-polygon-based-avatars-reach-millions-of-new-users) which has seen a large influx of new wallets for MATIC. > > Due to all the hype for MATIC it continues to grow. More than [11 million active wallets](https://polygon.technology/blog/polygon-insights-for-2022) were present in Q4 2022, an increase of 115% compared to Q4 2021. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

coinfeeds-bot

tldr; Stablecoins recorded $846 billion in on-chain trading volume in May, despite a 30% drop from the previous month and the total stablecoin supply being $20 billion below its peak. The market remains active, with stablecoins being recognized for their potential to reduce international remittance fees. PayPal's PyUSD has emerged as a significant player, now the tenth largest stablecoin with a market cap nearing $400 million. PayPal also announced the addition of its stablecoin on the Solana blockchain, expanding beyond Ethereum. The Solana ecosystem now has over $3 billion in stablecoin market cap, with USD Coin dominating. PayPal's Xoom service now allows US customers to send stablecoins to about 160 countries without fees. Tether USD, MakerDAO’s DAI, and USD Coin were the top three stablecoins by trading volume. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Fair_Raccoon9333

DAI is worthless? What are you smoking?

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by Shippior. > [Polygon](https://polygon.technology/)(Ticker: [MATIC](https://www.coingecko.com/en/coins/polygon)) is an Ethereum Virtual Machine ([EVM](https://ethereum.org/en/developers/docs/evm/)). It is a sidechain from Ethereum for the solving the scaling problem that Ethereum has by offering faster and more cheap transactions by offering transaction to settle on the Polygon chain and to be later settled on the Ethereum chain. It was created in 2017 by an Indian based team as the Matic network and was later rebranded to Polygon. > > Polygon has a maximum supply of 10 billion tokens. The [total breakdown](https://www.coinbase.com/institutional/research-insights/research/tokenomics-review/polygon-matic-scaling-solutions#:~:text=Polygon's%20token%20MATIC%20is%20primarily,validator%20nodes%20to%20earn%20rewards.) of this supply is 19% Initial exchange offering, 16% to the team, 4% to advisors, 12% to staking rewards, 21.86% to the foundation and 23.33% for future investments in the ecosystem. This shows that there is a lot of funds available for development of the blockchain. This is also seen in the number of developers that chose to work on Polygon. The number of developers working on Polygon has grown to over 1100, which is 16x more than in [2018](https://twitter.com/theweb3sharma/status/1615592481047080961). > > Contrary to other blockchains, polygon is not just one blockchain but a number of blockchains under one hood, each of them focused on a different application. This allows Polygon to compete on several (almost all markets at the same time). It has prominent applications for DeFi, NFTs and [web3 gaming](https://techcrunch.com/2023/03/20/polygon-and-immutable-partner-to-help-onboard-more-gamers-and-developers-into-web3/). For instance it is at the moment a [very populair chain for NFTs] > (https://ambcrypto.com/polygons-nft-space-is-booming-as-trade-count-surges-thanks-to/) and many projects from other chains want to migrate to Polygon. At the moment it has roughly the same volume as [Solana, but both are still dwarfed by the NFT volume of ETH.]( > https://dune.com/rchen8/opensea) > > The most well-known DEXs on the Polygon chain are [Uniswap](https://app.uniswap.org/#/swap), [Quickswap](https://quickswap.exchange/#/) and [1Inch](https://app.1inch.io/#/137/simple/swap/MATIC/DAI). These are all very high profile DEXs. Because Polygon is based on Solidity, just like Ethereum, it is easy to implement it on a DEX that was originally built for Ethereum. This also helps the Polygon chain in general as contract or updates that are developped for Ethereum can be implemented with very little effort. Even if that was a problem, Polygon has currently the fastest growing [number of developers](https://dailyhodl.com/2023/01/19/polygon-cosmos-and-two-ethereum-rivals-have-surged-over-400-in-one-metric-says-crypto-firm/#:~:text=According%20to%20the%20report%2C%20Polygon,2%2C000%20and%20Solana%20about%202%2C250.). > > > Polygon has impressed several multinationals to host their web3 introductions. Starbucks has hosted their rewards program called [Starbucks Odyssey program](https://odyssey.starbucks.com/) on the chain. Reddit has chosen Polygon chain to host their [Avatar NFTs](https://decrypt.co/112783/reddit-nfts-surge-as-polygon-based-avatars-reach-millions-of-new-users) which has seen a large influx of new wallets for MATIC. > > Due to all the hype for MATIC it continues to grow. More than [11 million active wallets](https://polygon.technology/blog/polygon-insights-for-2022) were present in Q4 2022, an increase of 115% compared to Q4 2021. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

jeetsstizzard

Try USDC. They've been open about their reserve backing and do monthly attestations from top accounting firms. The downside is it's still heavily USD-based, so not a perfect hedge if you're worried about the greenback going down. Another good option is DAI, which is a bit different since it’s a decentralized stablecoin. It is backed by a mix of other crypto rather than fiat money and it is managed by the MakerDAO community. The code is open source and there's no central issuer, so it avoids a lot of the centralization risks. The downside is the complexity of the system and it can be unstable during extreme volatility. There is also BUSD. Like USDC, it’s backed by US dollars held in FDIC-insured American banks. Also, it's issued by Paxos in partnership with Binance and is regulated by the New York State Department of Financial Services. Just a piece of advice, when I am figuring out which stablecoin to use, I spend a lot of time on the Traders Union. This page has tons of expert reviews and comparisons, where you can pin down the pros and cons of each stablecoin. They break things down in an easy way, which is awesome. No matter what though, make sure to do your own research!

jekpopulous2

Not at all. LUSD pegs to $1 using a stability pool... PureDAI isn't pegged to the dollar at all. The closest comparison is [Reflexer](https://reflexer.finance/) and RAI. Reflexer's code is actually based on the [DAI Purple Paper](https://nikolai.fyi/purple/) written by Nikolai Mushegian back in 2018. Unfortunately he died in a drowning incident before he could build it. The best explanation of how a free-floating peg works is probably [this](https://medium.com/reflexer-labs/stability-without-pegs-8c6a1cbc7fbd) Medium post from Stefan Ionescu. That's obviously about RAI but PureDAI will work the same way.

TireMeister

so they're getting rid of DAI, and making a coin that they can freeze? great

doc_bison

DAI. I'm mostly using Uniswap so it's the easiest

coinfeeds-bot

tldr; Rune Christensen, founder of MakerDAO, introduced two new stablecoins, NewStable and PureDAI, as part of the Endgame plan. NewStable aims to replace DAI, focusing on growth, yield, and resilience, and will incorporate real-world assets (RWA) with a novel freeze function. PureDAI seeks to return to the project's ideological roots, supported by decentralized collateral like ETH and staked ETH (stETH), featuring minimal governance and simple tokenomics. A genesis supply of 2 billion PureDAI tokens will be distributed over five years, with a burn mechanism in place. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

SunliMin

This is part of why this conversation is always so hard to have. "Crypto" is not a asset class, or a type of company. It's simply an immutable ledger with varying degrees of programability. Even if we just focus on ERC20 Ethereum tokens, a subset of crypto, they can be: \* A wrapped asset, like wrapped Bitcoin \* A stablecoin, like DAI \* A governance token, like AAVE \* A deposited/staked investment receipt, like cDAI for "DAI in Compound Finance" \* A untradeable tracking of debt, like AAVE debt tokens \* A utility token, like BAT \* A "Software As A Service" fee token, like LINK \* Untransferable point system, like a videogame and so much more. Not to mention, it can be a combination of the above, i.e. a governance token with utility that can be used as a fee in software as a service products. Before we can establish fundamentals, the first part of the discourse needs to be categorizing it. Otherwise, theres a counter example to every single point, cause there is no enforced consistency between cryptos. So far, we've pretty much just created categories for "Stablecoins" vs "Crypto", and sometimes we throw in "Utility Token" and "Governance Token", but we need to take it further, and talk about the separate use cases as distinct

SunliMin

It feels like context is needed here, both in that article, the title and comments. There are not "over 2.4m crypto projects". There are over 2.4m ERC20, ERC721 and ERC1155 contracts deployed. When a new ABC token comes out and someone makes a liquidity pool of it and WETH, that pool that was deployed is a new token being tracked, same with the ABC:WBTC, ABC:DAI, etc, each new pool gives you a token that is effectively your receipt to track how much you own of the backed assets for the withdraw, and that receipt is a contract per pool per defi app. This is also true with any form of staking. Defi apps use other tokens as receipts, but it does not make each of those token its own "project". Theres also the case that not every contract that exists is even built to be used. These numbers include Polygon and other sidechains. As a dev in this space, I have deployed probably... 30 or 40 NFT contracts to that blockchain. These aren't monkey NFTs to be traded, they are underlying infrastructure of our core products. In fact, at my current job, our NFTs are built to fail to transfer if it detects its being transferred by a 3rd party contract, because we explicitly do NOT want it to get picked up by defi apps, because our use case is not the average token use case, and it would go against our goals. All that is to say, this 2.4m number is wrong. If by "projects" they meant "dapp", the number is inflated at least 10:1, but probably closer to 50:1. For example, Uniswap V3 on mainnet Ethereum has 958 markets, so the 3rd version of Uniswap on one network accounts for nearly 1,000 of these "projects". Now imagine this for every version of Uniswap, across every chain, including every fork. Now imagine that same logic, but applied to Compound Finance, AAVE, every single Defi app on every chain and every fork. Easily hundreds of thousands are just from those big defi apps and clones alone.

advias

Any stable that relies 100% on audits is not long term safe so I agree on this one. DAI is probably safer than USDC. It's backed by both decentralized assets and centralized assets. The risk is much more decentralized than anything USDC has because it's aggregated across many investment vehicles. RICO is another interesting stable that's new but not yet gaining mass adoption. LUSD is what DAI was, fully backed by only Ethereum.

CointestMod

#TRON Pro-Arguments Below is a TRON pro-argument written by a deleted user. > ##**PROs** > > **Disclaimer**: There is little reliable information about Tron that isn't from Tron DAO or Justin Sun interviews. The official [Tron DAO Medium](https://trondao.medium.com/) site doesn't provide links to sources in the blog, making it harder to fact check and analyze. Many of its sources are from Weibo posts that are inaccessible beyond the Great Firewall of China. Tron's documentation and community posts provide way less information than that of other major blockchain projects. Nevertheless, I'm make do with what I can get. > > ####**Performance and Consensus** > > **High throughput and fast finality** > > Blocks are produced every 3s with a max size of 2M bytes. Consensus is completed using DPoS with a fault tolerance of 70% (9/27) Super Respresentatives that act as validators. There are over 350 SR/validator candidates who vote on the 27 SRs each 6 hours. > > - **High Throughtput**: **Tron can reach a max throughput of 2600 TPS with full 2M blocks** and its current balance of actual transactions, which is really high for an EVM-compatible blockchain. > - My calculations used [Tronscan data](https://tronscan.org/#/blockchain/blocks): Basic TRX and token transfers use 250-500 Bandwidth. The current average bandwidth for each transaction is currently 298, which is not that much higher than the lower end for basic transactions. > - Each bandwidth is 0.850 bytes, so you can fit 7800 average transactions in a single 3s block. Tron officially claims that it can reach 2000 TPS, so they're giving a conservative estimate. > - Even filled with 350-550 bandwidth swaps for [SunswapV2Router02](https://tronscan.org/#/contract/TKzxdSv2FZKQrEqkKVgp5DcwEXBEKMg2Ax/transactions), that's 1400 TPS on the lower end. That's way faster swaps than [everything other than Algorand](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581). > - The tradeoff is that consensus is highly centralized (only 27 validators), and that the validators have very high requirements like having 32 CPU cores and 64GB of memory. > - In comparison, Ethereum's Layer 1 in comparison, can only do ~15 TPS average (59 TPS for basic transfers, 7 TPS for Uniswap v3 swaps). > - **Fast Finality in 3s**: All 27 SRs are currently playing friendly with each other, so for all practical purposes, finality is in 3 seconds. (Deterministic finality occurs every 27 blocks, or 81 seconds). > > **Network Energy usage** > > Tron's estimated annual energy usage for 2022 is estimated to be 1.7 kWh, or the **energy usage of [15 average US households](https://decrypt.co/108115/tron-network-energy-use-matches-that-of-15-us-households-ccri-report)**. This puts it slightly lower than the consumption of Avalanche, Algorand, Cardano, and Solana's networks. Its carbon footprint is also 4x lower than the others. And it uses 100000x less energy than Bitcoin. > > ####**Ease of Basic Utility** > > **Transaction fees are covered for FREE by freezing TRX** > > Tron has a unique design for transaction fees instead of using gas. Transactions fees are divided into bandwidth (pays for data bytes) and energy (pays for computations). All transactions require bandwidth while only contracts need energy. > > The benefit is that you get **FREE bandwidth and energy by freezing TRX**, a process similar to staking. You currently receive about 28 energy and 1 bandwidth daily [per frozen TRX](https://tronstation.io/calculator). Basic smart contracts use 350 Bandwidth (requires freezing 330 TRX) and 14.7K energy (requires staking 520 TRX). At current TRX prices, **if you freeze $2500 worth of TRX, you could perform 100 free basic transactions daily**. In addition, each account receives [1.5 kb of bandwidth daily](https://developers.tron.network/docs/resource-model) (originally 5 kb) for free even without freezing TRX, which is good for ~5 transactions. Though I suspect users can abuse this by creating new accounts. > > Any transaction fees in excess of the free energy and bandwidth are burned. This is why TRX is **currently deflationary by ~0.3% annually** (excluding burns for the USDD minting process). > > **Settlement layer for Tether** > > According to Blockchain's [Sep 2022 interview with Justin Sun](https://podcasts.apple.com/us/podcast/exploring-tron-with-justin-sun-and-blockchain-com/id1536699961), **the original purpose of Tron was to act as a stablecoin settlement network and reserve network for Tether** (USDT). Sure enough, the bulk of DeFi on Tron's network deal with stablecoins. As of Sep 2022, [45% of Tether is now held on Tron](https://defillama.com/stablecoin/tether). And with Ethereum transaction fees being so high, Tron has become an attractive platform for USDT dApps. > > ####**DeFi Usages** > > **Smart Contracts** > > Tron's VM (TVM) is EVM-compatible and uses Solidity for the smart contract language. It is also Turing-complete. Thus, it's simple to rewrite EVM contracts for TVM. > > - **Tron's [DeFi TVL is massive at $5.4B](https://defillama.com/chains), putting at 3rd place after Binance Smart Chain**. > - Though it is a bit suspicious though that 99% of Tron's DeFi TVL are on 3 projects that are literally named after Justin Sun, though that could just be because it's very new. In comparison, Ethereum's DeFi is spread over hundreds of dApps. > - Tron SUN's [Liquidity Pool](https://sun.io/#/home) provides very high interest for USDD-USDT pairs at 5-70% APY. Back in June-July, you could gain triple-digit APY on Tron DeFi with stablecoins while the governance rewards boosts were still active. > > ####**Sustainable Tokenomics for TRX** > > - TRX's tokenomics have a steady, permanent issuance for validators, so it's **sustainable**. All transaction fees are burned. This isn't too different than Ethereum's tokenomics model (other than that Ethereum only burns part of the fee). > - TRX has a total circulating supply of about 92B, which is noticeably lower than their highest supply of 102B before the TRX-to-USDD minting protocol. TRX suddenly became [deflationary on Oct 27, 2021](https://tronscan.org/#/data/stats2/circulation). Supply has fallen about 10% since then due to token burns, making **TRX one of the most deflationary cryptocurrency in the top 30**. > - If we ignore the token burns from USDD minting, each day, ~5M TRX is minted, ~6M is burned (from transaction fees). **This gives net issuance of 1M TRX burned daily, or 0.3% annual deflation.** > > **Good TRX price action during the bear market** > > Tron's native token, TRX, is currently #15 in marketcap as of Sept 2022 with a [marketcap of $6B](https://www.coingecko.com/en/coins/tron). Its value has held up surprisingly well during the bear market, barely falling 50% while the rest of cryptocurrencies fell closer to 70-90%. **TRX is up 2x vs Bitcoin over the past year** during the bear market, pumping especially hard right around the launch of USDD and introduction of major staking and governance boost projects. > > ####**USDD, a hybrid stablecoin without UST's flaws?** > > **USDD is a hybrid collateralized/algorithmic (seigniorage) stablecoin** launched in May 2022 on Tron's network. It is one of the biggest focuses on the Tron roadmap. It was originally designed as a purely-algorithmic stablecoin based on Terra's now-failed Luna and UST stablecoin. After the collapse of Luna UST, the Tron DAO Reserve (TDR) made several changes to USDD to avoid a similar failure: > > **Differences between UST and USDD** > > 1. The biggest difference is that USDD is 300% collateralized with 11B TRX, 14K BTC, 100M USDT, and 1M USDC [Source](https://usdd.io/). **This makes USDD one of the most collateralized stablecoins.** In comparison, DAI is only 120% collateralized, and USDT and USDC are only 100% collateralized. > 1. TDR controls how much USDD can be minted or redeemed, so it's not purely algorithmic. Thus, TDR has full power to stop it from crashing. > 1. USDD will be released in multiple phases. The current phase only allows for a minting of 2B USDD. This is to limit USDD from growing astronomically quickly like with UST. [[Source](https://trondao.medium.com/improving-usdd-from-lessons-learned-e2600d7f94ad)] > 1. You're probably wondering what's the catch. There is a Peg Stability Module (PSM) that allows minting of USDD by burning TRX. You can current burn TRX for minting USDD, but **you cannot redeem USDD for TRX** [[source](https://twitter.com/TheImmutable/status/1536930692344401921)]. There is no liquidity on any of the [PSM smart contracts](https://docs.usdd.io/psm/the-psm#psm-contracts) to trade USDD for anything else. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_tron) to find submissions for other topics.

jwinterm

Also serai dex is coming soon, on testnet now, which will allow uniswap style reading for BTC, ETH, XMR, and DAI.

ross_st

The address poisoning phisher airdropped the fake ERC-20 token to thousands of addresses. Committing attempted fraud against thousands of targets is a lot of effort for someone to go to if they're only pretending to be scammed. And the reason the victim reused the address is that he was setting up a Uniswap liquidity pool. The first transaction was him depositing some DAI for one side of the pair. The second transaction was meant to be WBTC for the other side. He had to reuse the address by the very nature of what he was doing.

ross_st

That wasn't a test transaction. It was the victim trying to set up a Uniswap liquidity pool with a small amount of DAI on one side and a large amount of WBTC on the other. That's why it took the victim like a day to even notice it had happened.

ross_st

He wasn't sending a test transaction. He had sent a small amount of DAI to a Uniswap liquidity pool and was following up with a large amount of WBTC.

Somebody__Online

Sure I can help you understand. At its core crypto is just a distributed ledger. It’s a list of transactions that are organized chronologically and everyone’s version of this list updates wherever any legitimate transaction is made. Almost like a shared google doc but no one can make fake updates unless everyone agrees to add them. Crypto tokens are units that can be transacted on this ledger. That’s pretty much it. The tokens can represent a whole lot of things, from money to voting right in an exchange to just ownership of a monkey jpg. There’s tokens like USDC, DAI, FRAX, and USDT that track with $1 and are always worth $1 per tokens. There’s tokens like Bitcoin which are just digital units on a publicly maintained ledger. There is only 21million of them total so their value proposition comes from its verifiable scarcity in the supply and demand game. ETH is a utility token that lets you pay for the execution of programmed actions directly on its blockchain. That can be making a trade, creating a token, sending a token, creating liquidity positions, ect. You can invest into crypto by buying BTC and ETH tokens and having exposure to their price action but you can also buy USDC or other dollar backed assets and not be exposed to the price moves of crypto assets. You can use these tokens to participate in DeFi. You can supply to liquidity pools that facilitate trading or you can supply to money markets that earn interest from collateralized loans on the blockchain with no middle men. There’s a lot you can do from simple trading of tokens up to market making leveraged derivative markets. It’s all part of crypto

coinfeeds-bot

tldr; In the past 30 days, the three largest stablecoins by market cap processed over $1.3 trillion in transactions, surpassing Visa's monthly average of $1.2 trillion for 2023. Tether USD (USDT) led with $654 billion, followed by MakerDAO's DAI with $394 billion, and USD Coin (USDC) with $321 billion. This data, however, only includes transactions on Ethereum Virtual Machine-compatible networks, suggesting the actual stablecoin trading volume could be even higher. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

ConnorCink

If you’re looking to accept payments a majority are made in USD stablecoins (USDC, USDT, DAI, etc). Look for chains that support those assets. Most popular low cost fees are Polygon, Arbitrum, Optimism, Solana, and Tron. Of these the easiest to stand up quickly are Polygon, Arbitrum and Optimism because they all use the same smart contract language, EVM. Good luck!

ckhumanck

i think you're thinking of the MakerDAO (DAI) founder who said the CIA was going to kill him and was found dead a few hours later.

SilasX

Future news: DAI now the target of financial enforcement. (But way too late to close my MKR short...)

jeanpierrenc

USDT can still be frozen, better use DAI though

CointestMod

#TRON Pro-Arguments Below is a TRON pro-argument written by a deleted user. > ##**PROs** > > **Disclaimer**: There is little reliable information about Tron that isn't from Tron DAO or Justin Sun interviews. The official [Tron DAO Medium](https://trondao.medium.com/) site doesn't provide links to sources in the blog, making it harder to fact check and analyze. Many of its sources are from Weibo posts that are inaccessible beyond the Great Firewall of China. Tron's documentation and community posts provide way less information than that of other major blockchain projects. Nevertheless, I'm make do with what I can get. > > ####**Performance and Consensus** > > **High throughput and fast finality** > > Blocks are produced every 3s with a max size of 2M bytes. Consensus is completed using DPoS with a fault tolerance of 70% (9/27) Super Respresentatives that act as validators. There are over 350 SR/validator candidates who vote on the 27 SRs each 6 hours. > > - **High Throughtput**: **Tron can reach a max throughput of 2600 TPS with full 2M blocks** and its current balance of actual transactions, which is really high for an EVM-compatible blockchain. > - My calculations used [Tronscan data](https://tronscan.org/#/blockchain/blocks): Basic TRX and token transfers use 250-500 Bandwidth. The current average bandwidth for each transaction is currently 298, which is not that much higher than the lower end for basic transactions. > - Each bandwidth is 0.850 bytes, so you can fit 7800 average transactions in a single 3s block. Tron officially claims that it can reach 2000 TPS, so they're giving a conservative estimate. > - Even filled with 350-550 bandwidth swaps for [SunswapV2Router02](https://tronscan.org/#/contract/TKzxdSv2FZKQrEqkKVgp5DcwEXBEKMg2Ax/transactions), that's 1400 TPS on the lower end. That's way faster swaps than [everything other than Algorand](https://medium.com/dragonfly-research/the-amm-test-a-no-bs-look-at-l1-performance-4c8c2129d581). > - The tradeoff is that consensus is highly centralized (only 27 validators), and that the validators have very high requirements like having 32 CPU cores and 64GB of memory. > - In comparison, Ethereum's Layer 1 in comparison, can only do ~15 TPS average (59 TPS for basic transfers, 7 TPS for Uniswap v3 swaps). > - **Fast Finality in 3s**: All 27 SRs are currently playing friendly with each other, so for all practical purposes, finality is in 3 seconds. (Deterministic finality occurs every 27 blocks, or 81 seconds). > > **Network Energy usage** > > Tron's estimated annual energy usage for 2022 is estimated to be 1.7 kWh, or the **energy usage of [15 average US households](https://decrypt.co/108115/tron-network-energy-use-matches-that-of-15-us-households-ccri-report)**. This puts it slightly lower than the consumption of Avalanche, Algorand, Cardano, and Solana's networks. Its carbon footprint is also 4x lower than the others. And it uses 100000x less energy than Bitcoin. > > ####**Ease of Basic Utility** > > **Transaction fees are covered for FREE by freezing TRX** > > Tron has a unique design for transaction fees instead of using gas. Transactions fees are divided into bandwidth (pays for data bytes) and energy (pays for computations). All transactions require bandwidth while only contracts need energy. > > The benefit is that you get **FREE bandwidth and energy by freezing TRX**, a process similar to staking. You currently receive about 28 energy and 1 bandwidth daily [per frozen TRX](https://tronstation.io/calculator). Basic smart contracts use 350 Bandwidth (requires freezing 330 TRX) and 14.7K energy (requires staking 520 TRX). At current TRX prices, **if you freeze $2500 worth of TRX, you could perform 100 free basic transactions daily**. In addition, each account receives [1.5 kb of bandwidth daily](https://developers.tron.network/docs/resource-model) (originally 5 kb) for free even without freezing TRX, which is good for ~5 transactions. Though I suspect users can abuse this by creating new accounts. > > Any transaction fees in excess of the free energy and bandwidth are burned. This is why TRX is **currently deflationary by ~0.3% annually** (excluding burns for the USDD minting process). > > **Settlement layer for Tether** > > According to Blockchain's [Sep 2022 interview with Justin Sun](https://podcasts.apple.com/us/podcast/exploring-tron-with-justin-sun-and-blockchain-com/id1536699961), **the original purpose of Tron was to act as a stablecoin settlement network and reserve network for Tether** (USDT). Sure enough, the bulk of DeFi on Tron's network deal with stablecoins. As of Sep 2022, [45% of Tether is now held on Tron](https://defillama.com/stablecoin/tether). And with Ethereum transaction fees being so high, Tron has become an attractive platform for USDT dApps. > > ####**DeFi Usages** > > **Smart Contracts** > > Tron's VM (TVM) is EVM-compatible and uses Solidity for the smart contract language. It is also Turing-complete. Thus, it's simple to rewrite EVM contracts for TVM. > > - **Tron's [DeFi TVL is massive at $5.4B](https://defillama.com/chains), putting at 3rd place after Binance Smart Chain**. > - Though it is a bit suspicious though that 99% of Tron's DeFi TVL are on 3 projects that are literally named after Justin Sun, though that could just be because it's very new. In comparison, Ethereum's DeFi is spread over hundreds of dApps. > - Tron SUN's [Liquidity Pool](https://sun.io/#/home) provides very high interest for USDD-USDT pairs at 5-70% APY. Back in June-July, you could gain triple-digit APY on Tron DeFi with stablecoins while the governance rewards boosts were still active. > > ####**Sustainable Tokenomics for TRX** > > - TRX's tokenomics have a steady, permanent issuance for validators, so it's **sustainable**. All transaction fees are burned. This isn't too different than Ethereum's tokenomics model (other than that Ethereum only burns part of the fee). > - TRX has a total circulating supply of about 92B, which is noticeably lower than their highest supply of 102B before the TRX-to-USDD minting protocol. TRX suddenly became [deflationary on Oct 27, 2021](https://tronscan.org/#/data/stats2/circulation). Supply has fallen about 10% since then due to token burns, making **TRX one of the most deflationary cryptocurrency in the top 30**. > - If we ignore the token burns from USDD minting, each day, ~5M TRX is minted, ~6M is burned (from transaction fees). **This gives net issuance of 1M TRX burned daily, or 0.3% annual deflation.** > > **Good TRX price action during the bear market** > > Tron's native token, TRX, is currently #15 in marketcap as of Sept 2022 with a [marketcap of $6B](https://www.coingecko.com/en/coins/tron). Its value has held up surprisingly well during the bear market, barely falling 50% while the rest of cryptocurrencies fell closer to 70-90%. **TRX is up 2x vs Bitcoin over the past year** during the bear market, pumping especially hard right around the launch of USDD and introduction of major staking and governance boost projects. > > ####**USDD, a hybrid stablecoin without UST's flaws?** > > **USDD is a hybrid collateralized/algorithmic (seigniorage) stablecoin** launched in May 2022 on Tron's network. It is one of the biggest focuses on the Tron roadmap. It was originally designed as a purely-algorithmic stablecoin based on Terra's now-failed Luna and UST stablecoin. After the collapse of Luna UST, the Tron DAO Reserve (TDR) made several changes to USDD to avoid a similar failure: > > **Differences between UST and USDD** > > 1. The biggest difference is that USDD is 300% collateralized with 11B TRX, 14K BTC, 100M USDT, and 1M USDC [Source](https://usdd.io/). **This makes USDD one of the most collateralized stablecoins.** In comparison, DAI is only 120% collateralized, and USDT and USDC are only 100% collateralized. > 1. TDR controls how much USDD can be minted or redeemed, so it's not purely algorithmic. Thus, TDR has full power to stop it from crashing. > 1. USDD will be released in multiple phases. The current phase only allows for a minting of 2B USDD. This is to limit USDD from growing astronomically quickly like with UST. [[Source](https://trondao.medium.com/improving-usdd-from-lessons-learned-e2600d7f94ad)] > 1. You're probably wondering what's the catch. There is a Peg Stability Module (PSM) that allows minting of USDD by burning TRX. You can current burn TRX for minting USDD, but **you cannot redeem USDD for TRX** [[source](https://twitter.com/TheImmutable/status/1536930692344401921)]. There is no liquidity on any of the [PSM smart contracts](https://docs.usdd.io/psm/the-psm#psm-contracts) to trade USDD for anything else. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_tron) to find submissions for other topics.

dannygladiolas

Isn't DAI only available to Ethereum?, Tether is multichain

Agha_shadi

It actually doesn't have to be a collapse. It can be a gradual shift from Tether to DAI. It's like a sudden collapse of cigar factories. It'd be a disaster for the economy. but what if a gradual shift towards a healthy life reduces the cigar consumption? Voilà ;) you got the idea.

Agha_shadi

I don't like Tether either. It's shady and central. But there is no option on my Exchange to buy BTC using DAI ! all there is, is a USDT/BTC deal available. If there was a DAI/BTC deal available, I'd be more than happy to use it.

coinfeeds-bot

tldr; Hedgey Finance, a token infrastructure platform, suffered a flash loan attack resulting in a loss of approximately $44.5 million in digital assets across Ethereum’s layer-2 network Arbitrum and the Binance Smart Chain. The attacker exploited the 'createLockedCampaign' function using flash-loaned funds to drain the platform’s assets, which were then converted to DAI stablecoin and transferred to an external address. Hedgey Finance is investigating the attack and has advised users to cancel active claims. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

frozengrandmatetris

makerdao originally tried to back DAI with ETH and maintain a 1 USD peg, but they couldn't get it to work right and started allowing other forms of collateral, which eventually got mostly taken over by USDC. if liquity somehow figured out how to make single collateral DAI work, good for them, but I have doubts that it is safe, and they are also going to get targeted by the proposed legislation.

Agha_shadi

I wonder why there's a tether to any cryptocurrency deal available on all the exchanges but no DAI to other cryptocurrency at all!

jekpopulous2

There really aren’t any similarities. UST was under-collateralized by LUNA (which had an elastic supply). RAI is over-collateralized by ETH. It’s a CDP that works a lot more like DAI only with elastic redemption rates. Just for the record I’m not shilling RAI here… just explaining how it works. I’m not really sure how well it (or DAI) will hold up long term.

jekpopulous2

I guess the TLDR would be that you have a CDP (like DAI) except instead of having a hard peg the price can float around a bit based on buy/sell pressure. RAI (from Reflexer) has been floating between $2.70 and $2.80 for the past year. The key is that as buy pressure increases so does the redemption rate and vice versa so there's incentive to keep the token within a fairly tight range. There's a lot more too it but it's not very easy to ELI5. You can get a better explanation [here](https://medium.com/reflexer-labs/stability-without-pegs-8c6a1cbc7fbd).

frozengrandmatetris

whoa, very cool. I will reconsider my negative feelings on DAI if they accomplish this

frozengrandmatetris

thank you. I made a post on r/defi if you have any thoughts. I am thinking that it would ban assets like DAI but not assets like RAI, because the definition has two prongs and RAI doesn't satisfy both of them.

frozengrandmatetris

there are some good ones, especially the ones that are not designed to be pegged to government currencies. a lot of potential is there. >the crypto asset will maintain a stable value relative to the value of a fixed amount of United States dollars it is unclear to me if this applies only to tokens such as DAI or MAI, which are specifically intended to be worth 1 USD. that is a fixed amount of US dollars. there is a chance that the language of the bill will spare other projects such as reflexer RAI, because this project is not designed or marketed in this way. RAI is not intended to be stable relative to the value of a fixed amount of dollars nor is it shown to perform this well, it is just intended to have low volatility relative to any government currency. I am not going to cry over tokens like DAI or MAI getting excluded from government sanctioned payment gateways and centralized exchanges. I have always believed that tokens like this will have some degree of centralization creeping in if they are always trying to keep a peg to a specific government currency. at one point DAI was basically a proxy for USDC given how much USDC was being used to collateralize it, and if that is still the case I would rather use USDC instead of DAI, but RAI will have my highest preference.

jekpopulous2

This is why DAI is moving to a free-floating peg similar to Reflexer. Frax and others are likely to do something similar.

Fantastic-Ad548

Looks like assets like DAI would become illegal because of this bill

disco-cone

Look at how DAI and the MKR dao works. It's literally how commercial banks work. Yeah it's true the fed and the treasury are the layer one money printers but commercial banks are the second layer money printers. They are incentivised to issue more loans faster than they are paid back since that will increase their profit. Because everyone loan books are continually expanding the money supply will keep increasing in the long term. It's very rare for it to contract.

disco-cone

It's not really frictional reserve lending when there's no mandated reserve requirement. Its basically collateral based lending eg similar to how DAI is issued. Except it's not as much over collateralized as it. Banks in Australia have capital requirements, not monetary reserve ratios, they were removed. Its crazy how many people spend their whole life trading time to earn money without understanding what it is even at a high level.

Ilovekittens345

I joined in much earlier, July 2011 was when I bought my first Bitcoins but I only had a 100 euros to invest. Trust me, I tried to get my dad, the rest of my family, basically anybody with money. Tried to convince them to put it in to Bitcoin. Everybody said I should take my pills. Tried to get loans from the bank, they would call the police on me. In 2018 I started selling, put everything in DAI, been living of interest from providing liquidity on stablecoins pairs since about 2019. I don't have as much as you, but if my initial starting capital would have been higher I would have. And I also moved to a cheaper place to live.

Somebody__Online

I do make 5k a month. That’s the goal and I hit it every month and often exceed it. 25% Apr on stable coins over on curve, uniswap on arbitrum is paying that for DAI/USDC through Merkl farms, airodrom on base chain has a few stable coin pools over 60% Apr that I like. sFRAX just launched on base and that’s paying out the nose this past week. Those are just the stable coin ones im in. But the average is about 40% Apr this past month. It’s a lot of money for low exposure to the crypto markets volatility

DabNbeyondNormalUse

Absolutely according to coinmarketcap only 6 of the top 100 are showing green for the 24/hr period (Tether, Toncoin, LEO, DAI, NEO and Jasmy)

Tkldsphincter

Canada has been pretty good at calling out exchanges a year + before they get investigated. I believe they are actually doing their job protecting investors from any fallout. So I actually would caution against USDT. Why they went after DAI though seems like an overshoot.

Mushroom_Mooch

When it comes to setting up a self-custody wallet for emergencies, Bitcoin (BTC) and Ethereum (ETH) are definitely solid choices. They're the big players in the crypto space and tend to be more stable over the long term. However, there are other options out there depending on your preferences and risk tolerance. Some people also consider stablecoins like USDC or DAI since they're pegged to the value of fiat currencies like the US dollar. Ultimately, it boils down to what you're comfortable with and what you think will hold its value in an emergency. Hope that helps!

Sparta89

But you can trade with stablecoins such as DAI, USDC, and USDT

jekpopulous2

The simplest example of an RWA is Maker DAO's DSR (DAI Saving's Rate). sDAI is backed by tokenized assets like US treasury bonds. The bonds earn money off-chain and and it goes to sDAI holders. There are plenty of other examples but I think that's the easiest to wrap your head around. Other major protocols tokenizing off-chain assets would include stuff like Ondo, Pendle and Mantra. There are even entire chains being built for RWA's like Canto, XDC, and Polymesh. They're all approaching it from different angles but worth looking into if you're going down the rabbithole.

bioelectromagnetic

DAI mo bettah. Multi-collateralized by cryptocurrencies and run by a DAO. Why you USDC USDT. Why do? 🤷🏻‍♂️ DAI

HippoDance

Yup. I'm looking at a 5 way split for safety - USDT + USDC + DAI + PAXG + Fiat

coinfeeds-bot

tldr; Decentralized cryptocurrency exchange FixedFloat has reportedly suffered another exploit, resulting in the loss of nearly $3 million worth of cryptocurrencies including Ethereum (ETH), Tether (USDT), Wrapped Ether (WETH), DAI, and USD Coin (USDC) from its hot wallet on the Ethereum blockchain. An unknown entity used a smart contract for token swapping to facilitate the transactions. This follows a previous attack in February where FixedFloat lost $26.1 million. The company has not yet issued a public statement, and its website is currently down for maintenance. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

CryptoNerd_16

MakerDAO hits $600M DAI boost for USDe & sUSDe, backing Ethena's rise.

coinfeeds-bot

tldr; MakerDAO is considering a proposal to allocate $600 million of its stablecoin DAI into USDe and staked USDe (sUSDe) through the DeFi lending protocol Morpho Labs. This move aims to support the growth of Ethena Labs, the issuer of USDe and sUSDe, aligning with its internal growth expectations. The proposal suggests a gradual scaling of investment, initially capping the total allocation at $600 million to manage exposure prudently. USDe currently represents 1.74% of the total Ethereum stablecoin supply. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Somebody__Online

Right now the yields on LPs are through the roof again. My stable coin pools (like usdc/DAI paired into a lp) are consistently pulling 40-60% Apr again Eth/wstETH has been at 30% which is basically just growing my ETH position with minimal exposure to anything other than ETH. And then that OVN pool is wild. The token is actually one I wanted since the launch, as I’m a fan of overnight finance which is its project. But that pool on base chain pays an insane yield now and the token is up a lot too. I’m very happy faring that one too. On top of this I also cover options on Lyra and they pay me about $800 a week for every 250,000 in notational volume. And meme coins are a blast to trade. I use 1 inch to set limit trades from my wallet and it’s been easy to catch 20% swings in that scene. It’s getting super easy to make money in crypto again. I have been doing it for years but usually try for 2-3k per month. Last few month it’s like 10-15k in yield and incentives

MaximumStudent1839

You are missing a lot of social nuances. What defines a currency is more than just tech. It is not tripe to say, the community’s behavior does a lot in building a currency’s value. The recent comparison between Bitcoin and ETH isn’t really a push by BTC maxis. It is a push by the ETH maxis. Here is why. 1) ETH market cap is the second largest market cap. Going after alt L1’s liquidity won’t move the needle much. So they think they need to compete for BTC UHNW and institutional liquidity. Consequently, a lot of ETH VCs and loud traders have been constantly shitting on BTC in the bear to make ETH more appealing. 2) Ever since ETH L2 scaling road map became more publicly known, you start to see a lot of marketing push for ETH to be SoV crypto for the general crypto. The idea is, push ETH demand from gas token to a money token, used by other chains. Of course, it inevitably, it but heads with BTC. It is why, you hear an increased volume from ETH VCs and traders calling for the end of BTC and replaced by ETH. No, you are wrong. ETH comparison against BTC is self-inflected by the ETH community. Much of crypto is too volatile to use as regular currency. It is deeply encoded by demand of 99% participants see it as vehicle to print more fiat from trading and the finite supply of them all. USDC/DAI are probably the closest forms of actually usable crypto currency. Plus, 90%+ of crypto app devs are useless bozos who don’t know anything besides making more Ponzis or forking blue chips, like Aave/Uniswap etc. Consequently, there aren’t much real product/services for ppl to use crypto beside keeping them as price appreciating gambling chips. Censorship resistance and permissionless are great crypto properties. But let us be honest. Unless you are from unfortunate countries like Iran, the chances you are pretty fucked up if you get censored by the USA. Most ppl don’t need to worry about this. Even if you talk about ppl trying to circumvent totalitarian states like Russia and China, I doubt the demand would justify the current crypto valuations. In turn, it bring to the point, what do you mean by “crypto money”? For non-degens and short-term fiat printers, 1) they are looking for it to reliably appreciate over time, and 2) liquid enough to be used as collateral eventually. BTC does really well in these arenas. When ppl first time learn about market caps, they realize there is more upside from buying stuff outside BTC. It is true but it is both a blessing and a curse. Why? You aren’t the only one thinking that way. Most who wants to get rich quick and GTFO from crypto have the exact same thoughts. It means, you are bound to have a very mercenary community and make value appreciation very hard. A good recent example is Solana. Back in last year, ppl hated SOL so much. If you look at CT, all the big following account shit talked SOL and how ETH L2 scaling road map is the next coming of Christ. All of a sudden, when ETH starts lagging and SOL hits above 170+, the same characters rapidly change their . ETH to . SOL and launch their own scams, like BOME.

Trym_WS

Technically it’s fully available to anyone through DAI right now. But the volatility will liquidate you.

AshamedFlame

I’m bullish on DAI

djuggler

I cannot pay the mistakes of my past with USDC, USDT, DAI etc. at least not yet or not with my current knowledge. I made a mistake in college and got into credit card debt. Later I ran a business using my credit cards, and liquidating all my assets including cashing in my 401K. According to my business plan it shouldn’t have been a problem but I had an expensive lesson. I’ve been trying to recover financially for nearly 30 years and it is looking like crypto is going to zero out everything except my house and student loans. The amount of money I’ve lost to interest and fees is obscene. I would love to keep my money in crypto but this opportunity to break away from my debtor’s prison is going to truly change my life for the better and maybe even give me an opportunity to retire one day.

Background-Paper-686

It's kind of crazy that the first thing people think of when they make money in crypto is to immediately move it into an oppressive financial system where you're constantly asked invasive questions about your money lol. I haven't had to answer questions about my money for quite some time lol. You don't need all of your money to be in an investment. It can be in USDC, USDT, DAI...etc. I'd be careful about USDC/USDT though they are controlled by the financial elite and can freeze your stuff for no reason even if you didn't do anything wrong.

Ruzhyo04

Use DeFi to have the best of both worlds. Put BTC (wBTC or preferably tBTC) in Aave. Withdraw fiat debt (USDC, DAI, etc). Spend that on a house, keep your coins.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by Shippior. > [Polygon](https://polygon.technology/)(Ticker: [MATIC](https://www.coingecko.com/en/coins/polygon)) is an Ethereum Virtual Machine ([EVM](https://ethereum.org/en/developers/docs/evm/)). It is a sidechain from Ethereum for the solving the scaling problem that Ethereum has by offering faster and more cheap transactions by offering transaction to settle on the Polygon chain and to be later settled on the Ethereum chain. It was created in 2017 by an Indian based team as the Matic network and was later rebranded to Polygon. > > Polygon has a maximum supply of 10 billion tokens. The [total breakdown](https://www.coinbase.com/institutional/research-insights/research/tokenomics-review/polygon-matic-scaling-solutions#:~:text=Polygon's%20token%20MATIC%20is%20primarily,validator%20nodes%20to%20earn%20rewards.) of this supply is 19% Initial exchange offering, 16% to the team, 4% to advisors, 12% to staking rewards, 21.86% to the foundation and 23.33% for future investments in the ecosystem. This shows that there is a lot of funds available for development of the blockchain. This is also seen in the number of developers that chose to work on Polygon. The number of developers working on Polygon has grown to over 1100, which is 16x more than in [2018](https://twitter.com/theweb3sharma/status/1615592481047080961). > > Contrary to other blockchains, polygon is not just one blockchain but a number of blockchains under one hood, each of them focused on a different application. This allows Polygon to compete on several (almost all markets at the same time). It has prominent applications for DeFi, NFTs and [web3 gaming](https://techcrunch.com/2023/03/20/polygon-and-immutable-partner-to-help-onboard-more-gamers-and-developers-into-web3/). For instance it is at the moment a [very populair chain for NFTs] > (https://ambcrypto.com/polygons-nft-space-is-booming-as-trade-count-surges-thanks-to/) and many projects from other chains want to migrate to Polygon. At the moment it has roughly the same volume as [Solana, but both are still dwarfed by the NFT volume of ETH.]( > https://dune.com/rchen8/opensea) > > The most well-known DEXs on the Polygon chain are [Uniswap](https://app.uniswap.org/#/swap), [Quickswap](https://quickswap.exchange/#/) and [1Inch](https://app.1inch.io/#/137/simple/swap/MATIC/DAI). These are all very high profile DEXs. Because Polygon is based on Solidity, just like Ethereum, it is easy to implement it on a DEX that was originally built for Ethereum. This also helps the Polygon chain in general as contract or updates that are developped for Ethereum can be implemented with very little effort. Even if that was a problem, Polygon has currently the fastest growing [number of developers](https://dailyhodl.com/2023/01/19/polygon-cosmos-and-two-ethereum-rivals-have-surged-over-400-in-one-metric-says-crypto-firm/#:~:text=According%20to%20the%20report%2C%20Polygon,2%2C000%20and%20Solana%20about%202%2C250.). > > > Polygon has impressed several multinationals to host their web3 introductions. Starbucks has hosted their rewards program called [Starbucks Odyssey program](https://odyssey.starbucks.com/) on the chain. Reddit has chosen Polygon chain to host their [Avatar NFTs](https://decrypt.co/112783/reddit-nfts-surge-as-polygon-based-avatars-reach-millions-of-new-users) which has seen a large influx of new wallets for MATIC. > > Due to all the hype for MATIC it continues to grow. More than [11 million active wallets](https://polygon.technology/blog/polygon-insights-for-2022) were present in Q4 2022, an increase of 115% compared to Q4 2021. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

phallicpunch

Circle’s USDC is fully backed by US dollar assets. The kinda assets the US Gmint uses to fund all kinds of WTFs, military dominance, & general biggest dick ballstrap support. A good portion of all other stables are partially or mostly backed by guess what…USDC. I’ve used stuff like DAI, FRAX & eUSD for Defi activities but never just straight hold large sums just for holding; although there are some risk ops for doing so. Even if everyone says don’t hold on CEX I do on CB because the interest I generate is more than enough to cover the CB ONE subscription & still churn funding for DCA. If CB goes under or if USDC depegs indefinitely then the whole crypto market is probably fukd & I will share massive losses with all of you together. Not saying you should only “use” USDC I am saying the risk level is exponentially lower for holding USDC given the backing & oversight on it.

Al8tk

40% USDT, 30% USDC, 30% DAI Avoid bridget ones choosing blockchain.

Johny-Green

DAI stablecoin in polygon is a good option you can swap usdt to dai very cheap and fast, for privacy you can get XMR but it is not a stablecoin.

No-Tackle-8652

ok but the #1 stablecoin fluctuates too. I said "even LUSD" because someone already mentioned DAI, and LUSD is the most decentralized dollar pegged stablecoin in existence

Fair_Raccoon9333

PENDLE - A unique app this cycle is turning yield bearing tokens into bond markets GNS - gTrade is the best fully on-chain leveraged DEX in crypto. Pays out huge dividends on DAI, USDC, or ETH.

CointestMod

#Polygon Pro-Arguments Below is a Polygon pro-argument written by Shippior. > [Polygon](https://polygon.technology/)(Ticker: [MATIC](https://www.coingecko.com/en/coins/polygon)) is an Ethereum Virtual Machine ([EVM](https://ethereum.org/en/developers/docs/evm/)). It is a sidechain from Ethereum for the solving the scaling problem that Ethereum has by offering faster and more cheap transactions by offering transaction to settle on the Polygon chain and to be later settled on the Ethereum chain. It was created in 2017 by an Indian based team as the Matic network and was later rebranded to Polygon. > > Polygon has a maximum supply of 10 billion tokens. The [total breakdown](https://www.coinbase.com/institutional/research-insights/research/tokenomics-review/polygon-matic-scaling-solutions#:~:text=Polygon's%20token%20MATIC%20is%20primarily,validator%20nodes%20to%20earn%20rewards.) of this supply is 19% Initial exchange offering, 16% to the team, 4% to advisors, 12% to staking rewards, 21.86% to the foundation and 23.33% for future investments in the ecosystem. This shows that there is a lot of funds available for development of the blockchain. This is also seen in the number of developers that chose to work on Polygon. The number of developers working on Polygon has grown to over 1100, which is 16x more than in [2018](https://twitter.com/theweb3sharma/status/1615592481047080961). > > Contrary to other blockchains, polygon is not just one blockchain but a number of blockchains under one hood, each of them focused on a different application. This allows Polygon to compete on several (almost all markets at the same time). It has prominent applications for DeFi, NFTs and [web3 gaming](https://techcrunch.com/2023/03/20/polygon-and-immutable-partner-to-help-onboard-more-gamers-and-developers-into-web3/). For instance it is at the moment a [very populair chain for NFTs] > (https://ambcrypto.com/polygons-nft-space-is-booming-as-trade-count-surges-thanks-to/) and many projects from other chains want to migrate to Polygon. At the moment it has roughly the same volume as [Solana, but both are still dwarfed by the NFT volume of ETH.]( > https://dune.com/rchen8/opensea) > > The most well-known DEXs on the Polygon chain are [Uniswap](https://app.uniswap.org/#/swap), [Quickswap](https://quickswap.exchange/#/) and [1Inch](https://app.1inch.io/#/137/simple/swap/MATIC/DAI). These are all very high profile DEXs. Because Polygon is based on Solidity, just like Ethereum, it is easy to implement it on a DEX that was originally built for Ethereum. This also helps the Polygon chain in general as contract or updates that are developped for Ethereum can be implemented with very little effort. Even if that was a problem, Polygon has currently the fastest growing [number of developers](https://dailyhodl.com/2023/01/19/polygon-cosmos-and-two-ethereum-rivals-have-surged-over-400-in-one-metric-says-crypto-firm/#:~:text=According%20to%20the%20report%2C%20Polygon,2%2C000%20and%20Solana%20about%202%2C250.). > > > Polygon has impressed several multinationals to host their web3 introductions. Starbucks has hosted their rewards program called [Starbucks Odyssey program](https://odyssey.starbucks.com/) on the chain. Reddit has chosen Polygon chain to host their [Avatar NFTs](https://decrypt.co/112783/reddit-nfts-surge-as-polygon-based-avatars-reach-millions-of-new-users) which has seen a large influx of new wallets for MATIC. > > Due to all the hype for MATIC it continues to grow. More than [11 million active wallets](https://polygon.technology/blog/polygon-insights-for-2022) were present in Q4 2022, an increase of 115% compared to Q4 2021. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Polygon) to find submissions for other topics.

No-Tackle-8652

DAI, USDC, USDT are from by Wanchain not Liqwid

AsbestosDude

Cardano has a few now. First the Algorithmic stablecoin Djed which has held up fairly well throughout this time despite volatility. It's never depegged very far. Second iUSD which is a synthetic with a decentralized mint and burn system by indigo protocol. It stable for a while during the bear market lows but has since depegged to as low as 70 cents. They are rolling out new systems to try and re-peg it. There is also MyUSD recently brought over by the project Mynth. I believe MyUSD is a native asset that can be redeemed for USDT on the Tron blockchain (more chains to follow). Liqwid finance has bridged, DAI, USDC and USDT however there is basically no market for them (the supply APRs are insane around 20-30% because the liquidity is so low and demand so high). There's one quite close as well, another fiat-backed stable (can't recall the name) from Ergo is on the shortlist to be added to the rosen bridge

bomberdual

Don't get me wrong, doesn't DAI have these kinds of periods as well? Fairly certain a good portion of the fluctuation is ongoing exchange liquidity from which oracles are pulling from correct me if I'm wrong

advias

This is how DAI was originally meant to be. If you want to read about what this even means here are some papers: [https://bank.dev/rico0\_bright](https://bank.dev/rico0_bright) [https://bank.dev/rico0\_lite](https://bank.dev/rico0_lite) This is conceptualized by Nikolai Mushegian, the founder of DAI. First mover in crypto development. When this takes off in the coming years remember this

advias

Revolutionized DEFI, not a revolution. PayPal for sure revolutionized internet payments. Uniswap is by far the biggest deal in defi, its spawned everything you see when it comes to any smart contracts chain. But DAI is also a big deal, i would put them right behind Uniswap.

MaximumStudent1839

No surprised. Every big influencer seems to have got a hand on this shit. Recently, there is a lot of appetite for new protocols to repeat Luna-like mechanism, aka print "fake" dollars out of thin-air. Ether Fi, ThorChain's new lending mech, etc. are key examples. People can't be satisfied with legit stuff like MakerDAO's DAI. They got to make this space filled with high risk and toxic DeFi products. And yet we complain about Warren and Democrats breathing down our neck in this space.

Theonlyeasyday

I agree. However, DAI is mostly collateralized with fiat at this point. I agree that the code is already there. It really comes down to: what do we want to price it in and how to absorb the volatility to create stability. I'll take a look at RAI. What you're talking about reminds me of Ampleforth (AMPL) which I talk about in my article. I don't think these are super viable, but I agree they're interesting testing grounds for new concepts. Right now, I don't see any alternative to collateralizing the token. Maybe after 50 years of stability, we can talk about relying on arbitrage to keep stability. But until then, I don't trust it.

Ur_mothers_keeper

Yeah, I like the idea of a token pegged to a commodity, or any synthetic measure really, using overcollateralization with native on chain assets, and being able to do that permissionlessly using contracts instead of custodial arrangements. I just don't like that the only thing we are really doing that with is fiat currency. A DAI or crvusd like coin run by a dao, pegged to something other than fiat, sounds like a killer tool to both shelter yourself from crypto volatility while also not being subject to devaluation due to debasement. And the code already exists, it's all about the oracle for something like that. I had been looking at Rai, which is an interesting approach, like a floating "stablecoin" pegged to nothing, basically it just reduces volatility. I don't know how viable that is with no benchmark, but it is an interesting idea.

vattenj

You wait for a time when the mortgage market has been mature, and mortgage it for a loan, then you pay zero tax, even get tax deduction for the interest. Previously some of the exchanges like Celsius has started this service but unfortunately they did not foresee the volatility of the crypto market thus went down, but there are also other projects like Maker DAO, let you get DAI loan using cryptos as collateral

Ur_mothers_keeper

Thanks. I didn't know that this was impossible with DAI. That's good to know.

StatisticalMan

Any centralized stablecoin can freeze assets. Most of them have from time to time and the rest likely can. DAI can't be frozen. The smart contract has no such provision and without a central authority who could do it. Now USDC (among other crypto) is used as deposits for generating DAI so it isn't perfectly decentralized but it is the most censor resistant of all stablecoins.

gr8ful4

AFAIK DEX only trade real cryptocurrencies (and DAI). The risk trading an unbacked "stablecoin" is probably too high. You should try bisq or LocalMonero

Ferdo306

Sure but DAI is a stable coin But yeah, interest rates rates are one of the mechanisms to keep DAI pegged to $1

nishinoran

Some of them are just association within the market and nothing direct. Others, like DAI or RocketPool's RPL token, for example, have some mechanism that encourages users to purchase based on the price of another asset. With RPL it's that node operators need to have at least 10% of the ETH they receive from the protocol for staking in RPL as collateral, and if they fall below 10% they don't get RPL rewards that month. If I remember correctly DAI does it by modifying interest rates.