According to data provided by CoinDesk, from the beginning of the year to March 30, Bitcoin has fallen by more than 45%, the largest decline in the first quarter in history. The market value has evaporated by 114.9 billion US dollars. In the bear market where cryptocurrencies generally fall, stable cryptocurrencies may usher in good opportunities.
At the Golem&MakerDAO Beijing meeting held in Krypton Space on the 31st, Pan Chao, a MakerDAO economic researcher and head of the Chinese community, accepted an interview with the author and shared about the Maker platform and the stable cryptocurrency Dai.
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Cryptocurrencies are more speculative, Dai can be used as a means of payment
In the past month, the cryptocurrency market has plummeted, and price volatility is the main reason why cryptocurrencies have not become mainstream applications.
Pan Chao told the author, "People don't use Bitcoin and Ethereum as a daily trading medium, but there is a certain degree of speculation. Because Bitcoin is deflationary, people are more willing to store it instead of using it as a currency. Use. Bit and Ether are good assets, and Dai is not a function to replace assets, but to provide currency functions for daily use.”
Dai achieves stability through secured debt warehouses and other methods, and relies on Ethereum to form a "secured hard currency", which can realize multiple functions such as value storage and leveraged transactions.
Dai’s real-world benchmark is USDT. USDT is a digital currency issued by Tether in 2015. Like Dai, USDT is also anchored 1:1 with the US dollar. But a report in January pointed out that USDT was suspected of spamming.
The difference between Dai and USDT is that Dai has actual asset collateral on Ethereum, and this collateral is realized through smart contracts, so it is decentralized. During the recent market crash, the price of Dai has held steady at $1.
Pan Chao said, “Because Dai is a spontaneous behavior of users and the system, the total amount is based on market demand and is not controlled by the Maker platform, so it can prevent the risk of central institutions.”
Dai has been used as the base pricing currency in some traditional exchanges (Bibox) and decentralized exchanges (ERCdex, etc.). Maker is already cooperating with international money transfer companies and has begun to use Dai to transfer money directly. The transfer speed of Dai currently depends on the speed of the Ethereum network. Maker is also working with supply chain finance companies to replace cryptocurrencies with Dai as a means of payment. Avoid the risks brought about by long waiting times for bills and fluctuations in the value of cryptocurrencies.
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A new fundraising method based on the stable currency DAI——DAICO
According to Satis Group LLC survey: "About 81% of ICOs are scams, about 6% fail, about 5% die, and about 8% continue to trade on exchanges."
At present, ICO is banned in China, and countries all over the world have no consensus on the supervision of ICO. Under the predicament of ICO, a new financing method DAICO began to appear.
This concept was proposed by Ethereum founder Vitalik in January 2018. The name of DAICO is a combination of DAO and ICO, that is, Decentralized Autonomous ICO, a decentralized autonomous ICO.
Pan Chao explained the concept of DAICO to the author. Nowadays, many projects use ether to raise funds. If there is a runaway or a break, investors have no control over the project, so there will be cases of door-to-door rights protection. If smart contracts are added to it, investors can set the share that the development team can propose each month, and can increase the withdrawn share according to the performance of the project. If the project runs away or there is a lot of distrust, investors can also get the ether back.
But the problem is that ether itself floats. Even if the project is well developed, if the Ethereum increases by 3-4 times, investors will withdraw the Ethereum, and a conflict of interest will arise at this time. It will have a bad influence on the project party that raised funds. Therefore, Vitalik will propose to use Dai, a stable cryptocurrency, to raise funds.
At present, DAICO is still in its infancy and has not been popularized on a large scale. In February 2018, TheAbyss launched the DAICO platform, which specifically provides this new type of fundraising model.
