0xRafi Profile picture
20 Feb, 19 tweets, 8 min read
1/ xDai STAKE, $STAKE, xdaichain.com. Given how crazy ETH fees have been recently it’s a good time to talk about what’s probably the most used L2 scaling solution for Ethereum right now with only a 150M Mcap, xDai $STAKE Image
2/ The xDai chain is an Ethereum sidechain where ETH smart contracts can be written and deployed in the same way as on the mainnet. So any asset on Ethereum can be bridged to the xDai chain and used there, with a fraction of the fees, and faster confirmation times (5s per block).
3/ xDai is not the only L2 side chain solution on Ethereum, but it is crazy how much adoption it has been getting lately and how undervalued their $STAKE token is compared to other L2 sidechain solutions
$MATIC $854M
$OMG $925M
$STAKE at only $150M
4/ Just to give an idea of the applications being built on xDai & the ETH main chain projects integrating with it:
- @gnosisPM ($GNO ) has announced all their applications will be deployed to xDai
- @origin_trail ($TRAC) announced the launch of OriginTrail Version 5 on xDai
- @perpprotocol a DEX for margin trading on ETH, runs all trading activities on the xDai Chain (>45M daily vol).
- @Honeyswap (honeyswap.org), a Uniswap fork, migrated from mainnet to xDai
- Baoswap (@thebaoman), a Uniswap fork, announced it’s launching on xDai
-Unicrypt @UNCX_token launched on xDai, making it easier for projects to launch directly on xDai using decentralized pre-sales & liquidity lockers
-@CirclesUBI has launched on xDai
-Partnership with @chainlink for natively integrating Chainlink’s oracle network into xDai
7/ xDAI has also established a strong use case for event currencies (currencies to buy food, merch, etc at single events) and has been used at EthDenver 2019 and 2020, Etheral NYC 2019, Devcon V (2019) and splunk19 (non-crypto IT conference which hosted over 25k wallets).
8/ Not to mention many other projects incl. NFTs (@withFND, @poapxyz, @NiftyInk), games (@darkforest_eth), prediction markets (@Omen_eth), voting (@vocdoni), etc. My point being, adoption of xDai chain is increasing, and FAST!
9/ And if we imagine that even a small part of the current Uniswap , NFTs, DeFi action will migrate to xDai (and the building blocks for this are certainly being deployed), we can imagine the growth potential ahead. Now let’s go into the project presentation:
10/ The xDai chain has a dual token architecture with $XDAI as the stable transactional token, and $STAKE as the staking consensus token. Each $XDAI is a bridged $DAI (so pegged to $1), and tx fees are paid in $XDAI, so fees remain predictable and VERY low (a fraction of a cent).
11/ The $STAKE token is used to secure the chain, allowing block producers (validators and their delegators) to reach consensus in exchange for staking rewards. $STAKE is not required for everyday transactions (as tx fees are paid in $XDAI), but only for consensus and governance.
12/ However, while $XDAI is a stable token, $STAKE is certainly not, and it is expected to increase in value as xDai adoption increases (given $STAKE holders have governance power and the fact that they also earn tx fees and bridge fees)
13/ xDai uses a POSDAO consensus, a delegated proof of stake mechanism where validators stake $STAKE tokens both to become block producers (and earn block rewards) and for governance voting rights, while delegators may delegate their voting power to validators.
14/ The link between Ethereum mainnet tokens and xDai is ensured through bridges, which lock a mainnet token to release the xDAI one, or vice-versa. There are two bridge implementations: the xDai Bridge used for Dai <-> xDai transfers and the Omnibridge used for other eth tokens
15/ The $STAKE token has an initial supply of 8.5M released over time (current circ. supply: 4.06M), and additional $STAKE tokens are minted as block rewards paid to stakers (~15% APR). Staking rewards also include the chain’s tx fees and bridge fees, paid in $XDAI.
16/ Allocation of the initial supply is shown below, noting that Liquidity, Private, Seed & Public round tokens have all been fully distributed. Foundation + Advisor token distribution will end on March 31st.
Ecosystem token distribution will start on March 31st and last for 1y Image
17/ Roadmap for 2021 includes Universal NFT Bridge, Optimistic Bridge, privacy preserving transactions, synthetic assets (based on the UMA protocol), and research on further scalability solutions using Polkadot, Cosmos, optimistic rollups etc.
18/ Last but not least, once ETH 2.0 is fully realised, xDai is expected to join ETH 2.0 either as a shard or in a rollup-type capacity.
19/ Some useful links:
List of projects on xDai: xdaichain.com/about-xdai/pro…
Bankless article on the project: newsletter.banklesshq.com/p/an-intro-to-…
Dune analytics: duneanalytics.com/maxaleks/xdai-…
Dextools: dextools.io/app/uniswap/pa…

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with 0xRafi

0xRafi Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @0xRafi

22 Feb
1/ $BONDLY bouncing back nicely after the dip

>Great marketing and mainstream exposure - 1st #NFT album in history!

>This coming Saturday is another @LoganPaul event which will increase exposure further

>Some @nansen_ai analytics below to get you feeling even more confident...
2/ Here are the # of individual addresses holding $BONDLY. Look at this beauty... Image
3/ Now a spot of $BONDLY whale watching...excluding project reserves, team wallets, staking pools etc)..

25 out of the 30 top $BONDLY balances have either been buying (13) or hodling (12) over the past 7 days... Image
Read 4 tweets
21 Feb
1/ $QUICK @QuickswapDEX. ETH L2 projects are in vogue, so it’s a good time to speak about Quickswap, a Uniswap competitor built on Matic's L2 infrastructure. $QUICK, sitting at ~25M Mcap, is seeing impressive increases in trading volume and liquidity, and for good reason... Image
2/ To get straight to the point, on Quickswap you have the same AMM Dex experience as on Uniswap or Sushiswap, BUT with 1 second confirmation times, transaction fees that cost a fraction of a cent, and without sacrificing decentralization as you would when using a BSC Dex.
3/ While Quickswap is not the only Uniswap competitor, what is notable here is that Quickswap is starting to see real use, with volume and liquidity increasing fast.
Read 16 tweets
18 Feb
1/ $RGT, rari.capital (@RariCapital). This is one most of you already know, but there is so much happening and so much great innovation coming from these guys (Fuse + Tanks + RSS coming in a few weeks…) that I thought it deserved a proper review
2/ @RariCapital is a yield aggregator allowing users to earn the best yield on their crypto within different risk appetites. They currently offer 3 yield pools (2 stablecoin & 1 ETH pool), applying funds across DeFi protocols such as Compound, dYdX, Keeper, mStable, Aave, etc.
3/ But the point is that for Rari this is just the beginning. Their current product competes with existing yield aggregators (Yearn, Farm, Alpha...)l leveraging on the same available DeFi protocols (the Aave’s, Compounds, etc) to earn the best available yields.
Read 22 tweets
16 Feb
1/ $DFD, @defidollar, dusd.finance. This is a project that i've mentioned over the last few days and that I believe is massively undervalued (~$10M market cap) and deserves a lot more attention. Image
2/ @defidollar offers a risk-insured stablecoin layer for DeFi. It does this through $DUSD, a stablecoin backed by an index of stable coins and leveraging on DeFi building blocks to ensure a $1 peg is maintained even if one of the stablecoins in the index loses its peg.
3/ So let’s take it step by step. Supported stable coins (DAI, USDT, USDC, sUSD…) can be posted as collateral to mint $DUSD and are provided as liquidity for yield generating DeFi products (such as @CurveFinance, yearn or $AAVE). And here is where the interesting stuff begins… Image
Read 21 tweets
14 Feb
1/ Here is another potential game-changing project that I am very bullish on: $BONDLY / bondly.finance (@BondlyFinance).
There is A LOT to say about $BONDLY, and each part of its offering (OTC swaps, DEX, NFT Launchpad, ecommerce gateways) could be a thread of its own!
2/ But the best way to summarise it would be to say that $BONDLY aims to address a simple but major issue, which is that OTC selling / trading of digital goods (crypto, NFTs, gaming items, social media accounts…), has always needed a trusted 3rd party to act as an intermediary.
3/ This 3rd party can range from being a helpful admin of a coin’s TG group, to the pro crypto OTC desks. But they all have 2 things in common: 1) you need to trust them and 2) they ALWAYS take a meaty fee.
Read 22 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!