DAI

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.

ovetta

Don’t delist it. Just give alternatives like USDC and DAI so people can choose whether to support a stable that may lack transparency.

coinfeeds-bot

tldr; Serai DEX is a decentralized exchange allowing users to swap cryptocurrencies like Bitcoin, Ethereum, DAI, Monero, and more. It operates without a central authority or admin keys, ensuring transparency and security. Users can swap through liquidity pools or provide liquidity to earn fees. Serai's infrastructure is built on a cryptographic stack written in Rust, ensuring an efficient and scalable architecture. The platform's code and validator set are open, and funds are secured in collateralized multisignature wallets. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Trym_WS

DAI and MakerDAO.

coinfeeds-bot

tldr; Tether (USDT) has surpassed a $100 billion market cap, marking a significant milestone in the stablecoin market. This achievement highlights Tether's dominance, with its closest competitors, USDC and DAI, holding only a fraction of its market share. Concurrently, the Total Value Locked (TVL) in the decentralized finance (DeFi) space is nearing $100 billion, indicating substantial capital deployment in DeFi protocols. Ethereum remains the primary blockchain for DeFi, accounting for nearly 60% of the TVL. The growth in Tether's circulation and the activity within the DeFi space reflect significant developments in the cryptocurrency market. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

juanly_xx

I've been hearing that USDT is going to explode since I entered into the crypto space in 2019. And I've seen USDC, UST and DAI lose the 1/1 parity while USDT was stable...

CryptoBombastic

I had DAI on there during the bear, great choice if you ask me.

No-City94

I'm curious to know too. I'm still try to figure out where should I keep my fund (after take profit in the next 1-2 years) while waiting for the next bull run in the next 3-4 years ? Stable coin ? (DAI , USDC) will it loose PEG ? Will it be seized ? Is there any better option ?

modpr0be

"If 75% of the Top 50 coins performed better than Bitcoin over the last season (90 days) it is Altcoin Season. Excluded from the Top 50 are Stablecoins (Tether, DAI…) and asset backed tokens (WBTC, stETH, cLINK,…)" - from Blockchain center dot net. So, it's not started yet.

noviwu97

DAI to $10

idlestabilizer

If I would go into stablecoins, I'd consider going into several in order to distribute risk. And preferably established algorithmic ones over custody based. LUSD (liquity) was quite resilient during the FTX induced flash crash of USDC. DAI did also recover quite fast. Also lots of smaller ones exist...

advias

Without DAI and Uniswap, defi wouldn't be where it is now.

advias

You are correct. People do no research past a reddit post. This has the ability to be bigger than DAI, more decentralized. It's also wild to me how little respect there is for this project and Nikolai after all that he's done for defi. Most people in here invested in SAFEMOON so understandable. Should had made this post in a developer subreddit but wanted more people to see it since it's hardly getting traction

benjaminchodroff

Here is a simplification to a complex subject. It really depends on which stablecoin we are talking about. For something like USDC, it is fully centralized to a company - Circle. A US business can register to their website and, after verification, can then deposit US dollars into a Circle bank account. Once the dollars are received and financial crime checks are completed, Circle will create “mint” the USDC tokens on one of the ledgers they support, such as Ethereum or many others, into a custodial wallet that the business has with Circle. The business may then withdraw those tokens by sending them to any wallet on that ledger - either owned by them or by anyone else in a pseudo-anonymous manner (it’s all public). If any crimes are found and sanctioned by the government, Circle will add the sanctioned addresses to a deny list which will freeze the funds from transferring. If the address is removed from the sanction, Circle can remove the address and the tokens can then freely transfer again. If the company receives any USDC tokens back into the Circle custody wallet, they may request Circle to withdraw the money to their bank account. Circle will then wire the money to the bank account and “burn” the tokens. But the real magic is what Circle does when they receive dollars. Circle knows that the dollars they receive will likely sit for awhile until customers come back to withdraw. As such, they can place funds in U.S. treasuries which can generate yield - currently over 5% a year. This is how they generate substantial profit. If many customers come back to cash out their stablecoins, it may put a lot of durational risk on the financial institution left holding the U.S. treasuries. Many other stablecoin providers have similar, different approaches ranging from algorithmic baskets of items to outright fraud or scams. For this reason, it is important to see how and where they operate and with which licenses if any they may require depending on the nature of the underlying assets. Some stablecoins, such as DAI, have no deny list and are algorithmic in nature with over collaboration of underlying assets. This allows them to have the best stability, but may prove challenging to regulate — but behave nearly identical to cash but with digital qualities.

GilfOG

Correct DAI is a soft peg, meaning it will fluctuate slightly. I think their target is within 1% IIRC. If DAI price is too low, people can buy up dai on the open market and trade it for the underlying collateral in the MakerDAO ecosystem. If DAI price is too high, people can lock up collateral and mint new DAI to sell on the open market. The system is driven by economic incentives and game theory assuming rational actors will seek profit.

Least-Courage-7610

Depends, there are different types of stablecoins. Not sure why you'd choose to ask on reddit tbh. There are many good YouTube videos explaining it, or you can read through the official documentation of those stablecoins. Backed stablecoins https://tether.to/en/how-it-works Soft-pegged stablecoins (See 'The DAI Stablecoin' section) https://makerdao.com/en/whitepaper Over-collateralized Seigniorage stablecoins (See 'Frax V3 Overview') https://docs.frax.finance/ There were attempts of algorithmic stablecoins that minimize the need for human input, also attempts of under-collateralized stablecoins (credit stablecoins), but they were unsuccessful so far Whiteboard Crypto made a very good video about stablecoins https://youtu.be/pGzfexGmuVw?si=m8Ey3wXFaRV2U9mR

Gr8WallofChinatown

There are two types. Algorithmic like UST (these are terrible) Pegged to assets DAI (pegged to crypto)  https://makerdao.com/en/whitepaper#introduction “Fiat” pegged stablecoins like USDC/Tether https://www.investopedia.com/terms/t/tether-usdt.asp Fiat ones are actually not 1:1. They print based off of market need. They are actually just certificates of deposits as they are primarily backed by Treasuries, bonds, etc They are also NEVER audited (they do “attestations” so no one ever knows if they’re actually 1:1 Finally, stablecoin issuers have agreements with banks and pay a fee to issue to the bank to issue the stablecoin

fanau

Good stuff. I forgot about DAI. I actually own some from a while back, the first time I had heard of a stablecoin actually.

Kindly-Wolf6919

At the moment, it's more like, because they (Circle and Tether) say so. They've been audited by certain companies yes but their reports are long and tedious so good luck. To be honest, I take those reports with a heap of salt. We all remember Alameda Research. Here's some reading material for you: Circle: https://www.theblock.co/learn/251863/what-is-usdc-and-how-does-it-work-a-guide-to-circles-stablecoin Tether: https://www.nasdaq.com/articles/tethers-audit-report-reveals-over-%242.8-billion-in-bitcoin-holdings I tried searching for DAI but didn't get anything suitable to post so maybe someone else might be better at research than me.

DigitalDude_42

With something like DAI my layman understanding was that the interest rates try to control that. If it's trading higher than a dollar then they can lower interest rates to promote increasing the supply. If they need to reduce supply then they can increase the interest rate so that less people want to pay it and they repay their loan.

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.

megafari

i dont "take profits," necessarily. I ride it up to a good point & then I convert it to DAI stable coin. Then i rebuy more when it crashes. Its not an exact science but it has allowed me to stack a lot more btc from $ already previously invested. I have been around since 2016 & I see the pattern and one could theoretically ride every wave, sell at or near the high, convert to a stable, wait out the 60%-80% correction, rebuy a lot more at or near the bottom.

Dazzling_Marzipan474

DAI/USDT on QuickSwap has 12%. They also have single coins but I can't see the apy currently

kenlbear

Coinbase seems ok with bitcoin and eth, but beware any low market cap coins like IOTA or LRC. They screw up on these often. They did on my DAI transfer.

coinfeeds-bot

tldr; Request Finance reported over $54M in crypto payment value for January 2024. The platform saw 1,055 new signups, bringing the total registered accounts to 33,585. Monthly active users were 1,974, and 2,298 crypto payments were made. Since January 2021, over $627 million in crypto payments have been processed through Request Finance. The top 5 cryptocurrencies used were USDC, USDT, SAND, ANKR, and DAI, and the top chains were Ethereum, BNB Chain, Polygon, Celo, and Near. The report highlights the platform's growth and user engagement. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.

Ilovekittens345

But what if you are already decided to hodl ETH anyways? What risk would there be to be in like ETH/DAI on Uniswap V2?

CyJackX

It's like most markets; the best places like USDC/DAI pairings, are saturated and the edge is whittled away. You can probably earn some decent passive income from LPing there, but to make more you simply have to take on more risk like on a dollar-crypto pairing.

greenlimejuice

Crypto is cool, but let’s think of some other non mail options. Venmo, you can hold a balance in there and pay all through the app with everything on private. There is also PayPal Crypto is cool but I worry about you not understanding about keys and being self custodial, phishing schemes. Aka you can do it, just read about it A LOT. As far as your concern about usdt though, I think you’ll be fine. Don’t keep your life savings in it though. Maybe split it between usdc and DAI? Or perhaps you keep the rest of the money in bitcoin for money that you won’t spend in the next two weeks.

styrax_japonica

USDC and DAI are NOT Luna or UST, at all, and that’s the whole damn point. Plenty of people said don’t TOUCH THOSE, there’s nothing but spaghetti under the hood, but retail folk do no real basic research to be critical evaluators of one coin over another. They go on YouTube and do a Lemming

tenor_tymir

USDC or DAI are good options as well, some say USDT is not fully backed by real USD … but who knows?

BramBramEth

Also DAI is (was? Didn’t keep up) strongly backed by USDC so might as well go USDC straight away

mishablank

Get Ledger, diversify into USDT, USDC and DAI

Accomplished-Try4716

I would have your income split between USDT, USDC, and DAI. Why limit yourself to one stable?

ckhumanck

the issuer of USDT is incredibly centralised and retains the right to freeze your funds (though this is usually associated with the proceeds of crime but still). They also have an incredibly shady past and are the subject of multiple investigations past and present. There's DAI - though personally I'd just avoid stable coins but your use-case is unusual. Also whatever exchange you join - if you're not planning to actually transfer into self custody - you can just hold is fiat currency on the exchange.

StatisticalMan

USDT has been too evasive about holdings and backings. It isn't regulated. I just see now reason to use it given there are alternatives. If you want a decentralized solution then DAI. If you want a strongly regulated and audited solution then USDC.

StatisticalMan

DAI or USDC would be my top two choices.

changelly_com

Hello! Thank you for patiently sticking with us throughout the investigation, and please pardon the necessary bureaucracy — it is indeed a complicated legal case. We’re glad to inform you that the refund request for your 5,000 DAI is already in progress. Please keep in mind that such refunds aren’t made without a bit of bureaucracy as well, so bear with us in the meantime, we will make sure to keep things at a fast pace. Since you’re already in contact with our AML/KYC Compliance department, don’t hesitate to ask them for updates on the status of your refund: they work 24/7 and will happily keep you posted.

GBR2021

I will give you $10k when either USDC, USDT or DAI go below $0.90. In return you will give me $10 every day as long as they don't. Deal? No? Sounds shitty? That's because it's a shitty deal. And that's what your risk profile looks like.

GBR2021

I will give you $10k when either USDC, USDT or DAI go below $0.90. In return you will give me $10 every day as long as they don't. Deal? No? Sounds shitty? That's because it's a shitty deal. And that's the whole downside I'd be getting by staking these three.

GBR2021

I will give you $10k when either USDC, USDT or DAI go below $0.90. In return you will give me $10 every day as long as they don't. Deal? No? Sounds shitty? That's because it's a shitty deal. But you're already in this shitty deal by missing out on stablecoin APY.

GBR2021

I will give you $10mil when either USDC, USDT or DAI go below $0.90. In return you will give me $10 every day as long as they don't. Deal?

ohThisUsername

Curious why DAI isn't on top. Isn't it the only decentralized one? I never understood why TUSD came out on top, but I supposed they had a first mover advantage.

funkinaround

Market makers are in the business of trading on the bid and ask to collect the spread between them. They are not in the business of operating stablecoins. There are other stablecoins out there: USDC, DAI, TUSD, FDUSD. No one uses them unless they are liquid enough to be useful. Tether happens to have most of the liquidity and pricing prevalence. It's a first mover advantage + people pulled out of USDC due to SVB exposure + BUSD is effectively shut down. Tether simply lasted longer.