Cardano RealFi Weekly Newsletter - Issue #50
Happy New Year everyone! Let's see what we got in store for 2023.
Axo (Maladex) ISPO Update
Axo released an update for those that participated in the ISPO that ended March 2022.
$ADA rewards have been returned to your wallet + minpool fees
KYC will be required for claiming $AXO tokens (NO geo restrictions)
20% on launch, 80% vested over 1 year
You can KYC up to 4 wallets fore free but after that you must pay 150 ADA per wallet
Full details available in the medium article here.
Zero-knowledge Proofs
dcSpark has been working on zero-knowledge proofs. Sebastien Guillemot has mentioned that a zk-rollup L2 could be launched in 2023. I’ll keep you all updated as more details are released. But it looks like Sebastien was able to use some info from the Orbis project.
TeddySwap Update
Information was released about TeddySwap. It will be releasing a v1 in February/March which will be an AMM in the style of Uniswap. They will then update to to a more Curve Finance style StableSwap with their V2 which is scheduled for a Q3 launch.
The current DEVs are Clark Alesna (CEO of SAIB inc), Michele Nuzzi, and Reza Lanlale.
All other information including tokenomics and utility can be found in their whitepaper here.
This last week we have seen some movement with WMT (World Mobile) which still has the #1 spot. Other projects in the top 10 have seen some downward pressure such as LQ (Liqwid Finance), MELD (Meld Finance), and INDY (Indigo).
The large drop in INDY is due to the rewards given those providing liquidity to stability pools.
For MELD I couldn’t find a specific catalyst but I know that confidence in the project has dropped a lot over 2022. Let me know if you have a good reason?
One of the largest gainers this week was CLAY (Clay Nation). We still haven’t seen a sharp selloff from this token and are waiting for utility.
Minimal DJED
There are rumors that when DJED launches it will be the minimal version. This comes with a few risks that everyone should be aware of before using it.
Reserve Draining Attack with Price Foresight: a variation of Theorem 7 dropping the assumption of constant exchange rate does not hold. A malicious user who can foresee how the exchange rate will evolve, perhaps because of an excessive oracle delay or active price manipulation, can perform sequences of actions that will drain the bank’s reserves.
Wholesale Discount: in Minimal Djed the price is fixed before the action. But every action changes the balance of reserves and SCs/RCs and hence affects the future price. Therefore, the total price paid (or received) for a given quantity of SCs or RCs depends on how this quantity is bought or sold. For example, assuming constant exchange rate, buying 10 RCs at once is cheaper than buying 10 RCs in two consecutive purchase of 5 RCs each.
Zero equity: when the reserve ratio falls to one, the equity falls to zero making the target price of RCs also zero. To avoid purchase of an unlimited number of RCs with price equal to zero, a minimal price was introduced. The problem of this simple fix is that the artificially set minimal price might be inconsistent with the market price, discouraging users from buying RCs in times it is most needed. For example, if P t RC = 5 BCs and P min RC = 10 BCs, then users might not want to pay 10 BCs for a coin that is backed by 5 BCs. – Rigid Fees: the pricing model doesn’t allow to increase or decrease fees smoothly to encourage operations that drive the reserve ratio to an optimal level and to discourage operations that drive it away from the optimum.
“Haircut” for Stablecoin Holders: when the peg is lost, the SC holders suffer financial losses. Minimal Djed does not have mechanisms to cover these losses.
RC Bank Runs: the analogue of Theorem 5 for reservecoins does not hold. When the reserve ratio is close to rmin , RC holders may feel encouraged to race against each other to sell their RCs, because every RC sale brings the reserve ratio closer to rmin and further sales of RC
Extended DJED will implement ways to mitigate these issues but the release date for extend DJED has not been announced.
Genius Yield ISPO Airdrop
January 2nd, Genius Yield will be airdropping the first 50% allocation of GENS token to those that participated in the ISPO. They have not announced an exact time but orders will be batched and selected at random. Expect the distribution to take a few hours.
They do have their staking available if you wish to stake those tokens for up to 12 months for extra rewards.
I’ll be watching the price action since GENS is currently listed on Minswap, Wingriders, & SundaeSwap.
No release date has been announced for the Genius Yield protocol to go live.
Messari report on Cardano
Cardano Foundation paid to have Messari do a report on Cardano. Worth checking out it you want an overview of Cardano.
Thanks for reading everyone. I hope your 2023 is off to a great start.