Weekly Newsletter of Li₿εʁliøη — Issue #7
News about Cardano and the cryptocurrency industry, and my new articles for the week of December 31–January 6.
My New Article:
Djed: A Stablecoin In Cardano. Deep Dive. — Part 2
In the first part I presented the Djed protocol, and how its stabilization algorithm works. I explained that Djed is an algorithmic stablecoin, over-collateralized up to 8x, and with Proof of Reserve on-chain, which transparently tests the circulating supply and how many ADAs are in reserve.
In this article we will see the practice of use, and its comparison with other stablecoins.
News Of The Week:
- Muesliswap: Liquidity Bonds or SPO Bonds by Optim finance. Tweet. You can read my article to understand it: Optimizing Capital Allocation in Cardano with Optim Finance. If you want to learn how to trade them: Now you can trade Bonds on Cardano
- Update -Cardano Node 1.35.4: Cardano does not stand still. After Vasil, the biggest upgrade to date in Cardano, reduced transaction size by up to 90% and improved scaling improving efficiency. A new Hard fork that will add support for cryptographic primitives such as SECP256k1, which use Bitcoin and Ethereum. This improves interoperability and allows building cross-chain bridges and applications. Read more.
- CIP —Improved Rewards Scheme Parameters: Discussions on the staking reward scheme continue. Tobias Fancee has submitted a new CIP, which addresses “..Replacing minPoolCost with a minPoolRate will ensure a level playing field for stakepools while providing sufficient sybil attack resistance. Additionally, the current setting of k, the optimal number of stakepools, is too low to provide an adequate pledge benefit. Increasing k will make the pledge benefit more effective and get delegations moving in hopes of helping single pool operators gain delegations.”
- Axo aidrop: Axo released an update for those that participated in the ISPO that ended March 2022. $ADA rewards have been returned to the wallet + minpool fees. KYC will be required for claiming $AXO tokens (NO geo restrictions) 20% on launch, 80% vested over 1 year. You can subscribe with KYC up to 4 wallets for free, then 150 ADA per wallet. KYC is a part of the Airdrop claiming process, but will not be a requirement to use the platform, and according to the team, Axo users will be able to use their verified data to create decentralized identifiers (DIDs) in the future.
Crypto Industry: Near Turbulence ?
Speculation in the crypto industry will cause a domino effect: FTX
If Genesis fails, the liquidators will seize Grayscale’s reserves like Bitcoin and other cryptocurrencies. And this could be the final moment for DCG. Genesis 💥➡Gemini 💥➡Grayscale 💥➡DCG
The impact on the crypto industry would be considerable. Read more.
Last Words. My Opinion.
Djed, Cardano’s overcollateralized algorithmic stablecoin is a great development. However, I find at least 2 problems:
- IOG handpicked a single issuer that will manage the protocol, COTI. I understand that it may be to preserve its integrity and not have initial failure.
- 2. Minimal Djed has 6 problems, and one is critical. Extended Djed will fix these, but initially COTI will release the Minimal version shortly.
Read my article that I mentioned at the beginning of this newsletter