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Uniswap has the largest trading volume: a list of nine algorithmic stablecoins

20-12-07 19:46

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Careful farmers have discovered that the trading volume of algorithmic stablecoins on Uniswap has risen rapidly recently. Among them, the trading volume of Base Protocol's algorithmic stablecoin BASE has reached 103 million US dollars in the past 24 hours, accounting for 100% of Uniswap's daily trading volume. 21.72%. The Basis Cash stablecoin Basis Cash and the ownership token Basis Share of the Basis Cash project entered the top ten in terms of trading volume, together accounting for 8.04% of Uniswap's single-day trading volume.

Source: CoinGecko

In addition, AMPL, which once had a monthly income of 510%, started to inflate again, and realized within 12 days Assets doubled. Its single-day trading volume reached US$5.43 million on Uniswap, ranking 12th.

Rhythm BlockBeats sorted out the recently popular algorithmic stablecoins and their respective rebase mechanisms.

Ampleforth (AMPL)

The AMPL stablecoin design mechanism adopts an elastic mechanism. AMPL has a target price. If its target price is 1 If the nominal exchange rate is higher than a certain threshold, the agreement will increase the number of tokens of all users year-on-year; if the price of AMPL is lower than a certain threshold of the target price, the agreement will reduce the number of tokens held by users.

AMPL official website will rebase according to the current AMPL target price and oracle price (Rhythm Note: It can be understood as token supply rebalancing), and the rebase will be held at Beijing time every day 10:00 to proceed.

Through the mechanism of AMPL, it can be found that AMPL is not a stable currency in the traditional sense, but a stable currency through games to stabilize its price. There is no upper limit on the total amount of tokens. If the price is always higher than the target price, the number of tokens will continue to increase. This shows that the market cap of AMPL is a better reflection of the value of the AMPL token and that users are not buying a constant amount of AMPL tokens but a share (percentage) of the AMPL market cap.

The special setting of AMPL determines that once it falls into the group price fomo sentiment, the sharp rise and fall of AMPL will will happen frequently. It can also be found through the market value of AMPL. At this stage, AMPL is more like a speculative token than a stable currency.

Empty Set Dollar (ESD)

In the white paper, ESD claims to be an "elastic supply stable currency", but its mechanism is more complicated than AMPL. ESD considers itself a decentralized self-stabilizing dollar, and uses the mechanism of "debt" and "coupons" to bring the price of ESD closer to the dollar.

In the ESD system, 8 hours is a cycle (epoch), after a cycle, the smart contract will check ESD token price (by time-weighted average price algorithm).

When the ESD price exceeds 1 USDC (equivalent to 1 US dollar), the smart contract judges that the market demand for ESD tokens is too high , will issue more ESD until the price of ESD returns to 1 USDC.

When the price of ESD is lower than 1 USDC, the system encourages users to destroy ESD tokens by launching "coupons". Coupons can be purchased at a discounted price, which is a voucher to redeem ESD in the future (Rhythm Note: Coupons are valid for 90 cycles, which is equivalent to 30 days.) In other words, when ESD is lower than 1 USDC, traders can lower Buy ESD tokens at the fixed price and sell them at the anchor price to make a profit. The take profit calculation is based on whether the difference between the current market price and $1 lasts longer than the trader expects the ESD to return to $1. The debt mechanism provides enough time for the system to calculate the lower demand so that the system can estimate how many "coupons" to issue. Once we go back to a fixed exchange rate, the debt will reset to zero, at which point no new "coupons" can be issued. If the ESD price falls below the peg again, the "coupon" cycle will start again, debt will accumulate from zero, and the discount on the "coupon" will become even lower.

Currently. The ESD quote is $0.98, the total debt is 37.38 million ESD, and the total coupon value is 26.64 million ESD.

Base Protocol(BASE)

BASE It is a token of Base Protocol, but it is not a stable currency of USD, but a stable currency of cryptocurrency market value. BASE anchors the cryptocurrency market value through a ratio of 1:1000000000000 (1:1 trillion). If the cryptocurrency market cap is $500 billion, then BASE is worth $0.50.

BASE is targeting a trillionth of the combined market cap of all cryptocurrencies: (total crypto market cap) x 0.1^12. When BASE=(cmc x 0.1^12), the base is in equilibrium. When this balance is disturbed, the token supply will be adjusted.

When BASE > (total cryptocurrency market value x 0.1 ^ 12), inflation makes BASE price drop; /p>

When BASE < (total market capitalization of cryptocurrencies x 0.1 ^ 12), deflation makes BASE price rise.

The mechanism of BASE is similar to that of AMPL. , the mechanism of deflation and inflation cannot get a good feedback in BASE. For now, BASE's hype is greater than its real value.

Basis Share(BAS), Basis Cash(BAC ), Basis Bond

Basis Cash, formerly known as Basis, the original vision of Basis was to create a A fair economic system for human beings, and then abandoned the project due to legal restrictions. After Basis gave up, the anonymous team took over the project and renamed it Basis Cash.

Basis Cash consists of three tokens:

-Basis Share(BAS)

-Basis Cash(BAC)

-Basis Bond

Basis Cash launched on November 30th. Like most stablecoins, BAC is pegged 1:1 to the US dollar, and its price will be managed by two other cryptoassets: Basis Bond and BAS. Starting at the end of November, 50,000 BAC will be distributed over 5 days (10,000 per day) to users who deposit five stablecoins (DAI, yCRV, USDT, SUSD, and USDC) into their smart contracts. Daily rewards will be distributed proportionally, and users can withdraw assets at any time.

When the price of BAC is lower than 1 USD, users can buy Basis Bond with a certain discount, and buy Basis Bond with a discount Users can get a certain profit when redeeming tokens in the future.

When the BAC price is above $1, the smart contract will allow the Bond redeemer to directly redeem the Basis Bond. If BAC trades above $1 after the Basis Bond is redeemed, causing demand for BAC to increase, new BAC tokens will need to be minted, which will also be distributed to BAS holders.

Although BAC is pegged 1:1 to the US dollar, judging from the price, it seems that the market does not regard it as a stable currency. Pan Chao, head of MakerDAO China, once wrote that Basis is a more dangerous scam than Bitconnect. Basis Bond is not a bond, but a long-term futures of Basis. Once Basis funds are broken and confidence is lost, Basis will enter a death cycle. Since there is no asset or any credit endorsement, no one believes in Basis and no one buys bonds. Basis is easy A run to zero occurs.

YAM (YAM)

YAM is essentially an elastic supply cryptocurrency whose supply expands and contracts as market conditions change, with an initial target of 1 YAM anchors 1 USDC. On August 13, due to a loophole in the elastic supply adjustment contract, Yam minted a large amount of additional yCRV during rebase. Subsequently, YAM announced that it would be migrating and handing the project over to the community.

YAM’s current price judgment adopts the time weighting of the two trading pairs YAM/ETH and ETH/USDC on the Sushiswap platform average price.

When YAM > 1.05 USDC, YAM supply increases;

When 0.95 < YAM < 1.05, YAM takes no action;

When YAM < 0.95 USDC, YAM supply decreases.

Based Money($BASED)

Similar to YAM, Based Money also adopts an elastic supply mechanism, and $BASED rebases every 24 hours. Unlike most stablecoins that use USDC as the benchmark, $BASED uses the Synthetix stablecoin sUSD as the benchmark.

When the price difference between $BASED and sUSD is greater than 5% (ie $BASED-sUSD>5%), it will be triggered once Rebase, the token supply increases, if the price difference is still greater than 5% after the supply increases, then rebase will continue to be triggered. For example, if on Tuesday night $BASED is at 1.20 sUSD and on Wednesday night $BASED is at 1.15 sUSD, the rebase event can start over.

When the price difference between $BASED and sUSD is less than 5% (ie $BASED-sUSD<5%), then $BASED supply will decrease.

Dynamic Set Dollar (DSD)

DSD is mainly improved on the basis of ESD, most of its principles are similar, the main difference is:

1. Cycle time:

ESD takes eight hours as a cycle, And DSD takes two hours as a period.

2. Rebase:

ESD token supply once rebase the largest The change was 3%, and the DSD removed the percentage limit. At the same time, DSD and ESD are also different in the establishment of bondholders and liquidity providers. 80% of ESD rewards go to bondholders, 20% go to liquidity providers; 60% of DSD rewards go to bond holders, 40% go to liquidity providers.

3. Supply/reward mechanism:

The formula for ESD supply is:

The formula for DSD supply is:

4. Coupon validity period:

ESD coupons are valid for 90 cycles, and DSD coupons are valid for 360 cycles. (Rhythm Note: Both are valid for 30 days).

Debase(DEBASE)

There are two tokens in the Debase system, the stable coin DEBASE with elastic supply and the governance token DEGOV. The governance token DEGOV has a total supply of 25,000 and allows users to propose new proposals and vote on proposal changes.

The price of DEBASE uses DAI as the benchmark and is queried through the Uniswap v2 oracle. When the price difference between DEBASE and DAI exceeds 5% (i.e. |DEBASE-DAI|>5%), the supply increases; when the difference is less than 5% (i.e. |DEBASE-DAI|<5%), the supply decreases. Every 24 hours, the contract undergoes a rebase. If the price difference is still more than 5% 24 hours after the rebase, then the rebase will be done again.

RMPL(RMPL)

RMPL is a fork of AMPL that also uses an elastic supply model and is designed to eventually reach a stable $1 price. When the price is above $1.05, the total supply increases. Each stakeholder now owns more RMPL, which should theoretically increase selling pressure and push the price closer to $1. The higher the price, the higher the percentage of adjusted basis. If the price falls below $0.95, supply dwindles and buying pressure should push the price closer to $1 again.

The difference between AMPL and AMPL is that RMPL rebase uses random time, and the rebase of RMPL is always after the last rebase Occurs randomly within 0-48 hours. RMPL's rebase occurs on average about once a day.

Summary

This article introduces a number of algorithmic stablecoins, but judging from the price of tokens, none of them seem to be able to achieve the effect of stablecoins, more like in the encrypted world a test. Behind the skyrocketing and plummeting more shows that the market has not yet reached equilibrium, and the use of game methods such as rebase cannot well make tokens reach a state where the fluctuations are reduced and tend to be stable.

Perhaps, using pledged mainstream currency to mint stablecoins is currently the best way to generate stablecoins.