“Give me liberty,"orgive me death" ("give me liberty or give me death"), Patrick Henry's resounding golden sentence in 1775 blew the horn of the American War of Independence, which represented a resounding declaration of a new world to the old world.

After the birth of Bitcoin in 2008, we are witnessing the birth of a new financial system. This is a series of articles explaining the dForce project in a popular way, taking readers to quickly understand the prospect of dForce, and dForce, as the best DeFi project in China, is an open financial application The program provides the original intention of the underlying infrastructure.

For the convenience of readers, there are several levels of interpretation of the dForce project

• Introduction of dForce Core Protocol USDx

• The formation process of USDx (minting, burning and voting mechanism)

• Decentralized lending market in the dForce ecosystemhttp://Lendf.Me+ USDx double layer interest

• Dual-token economic system captures the ecological value of dForce

• future route

Introduction of dForce Core Protocol USDx

dForce is a blockchain-based decentralized finance (DeFi) and currency protocol platform that provides the underlying infrastructure for open financial applications. The first to be launched is the USDx protocol-the index-based USD stablecoin protocol, which was launched in the lending market in Octoberhttp://Lendf.MeIt is also officially launched, and subsequent agreements such as liquidity agreements and financial derivatives markets will be launched

Under dForce's dual-token economic design, USDx will serve as a medium for transferring value in the network, and DF will serve as a platform currency to capture value in the network and build the entire network together.

Finance and our lives have long been everywhere. Currency runs through our daily life like blood. In life, everyone holds money in different forms to meet various daily needs, such as holding cash, which is reassuring. I feel that exchange can be done anytime and anywhere; such as using credit card or mobile payment, which is very convenient and does not need to carry accumulated cash, such as investment bank fixed deposit, Yu'e Bao, etc., which can generate income.

In the new financial world DeFi, legal currency is temporarily separated. One is policy reasons, and the other is that legal currency has not yet been tokenized and cannot assume the role of media in the new financial world currency. Instead, we call it "stable currency". It is also represented by the familiar and frequently used USDT. Stable currency is like the foundation of blood, as the bottom layer strings together the entire new financial world.

Should I hold USDT? What kind of stable currency (currency) is good to hold?

dForce’s first core currency protocol, USDx, is a representative of the pain points of stablecoins

(To choose a good stable currency, there should be three major principles)

popular expression

• Sleep well (don’t worry about the systemic risk of a single stablecoin)

• Collect rent (with interest, put it in the pool to earn interest when not in use)

• Fast running (convenient OTC channels and liquidity)

1. Sleep well (don’t worry about the systemic risk of a single stablecoin)

USDx is a stable currency of a basket of blue-chip stocks. Holding USDx is stable (PS: blue-chip stocks are some of the best and most stable large companies in the stock market). Among the stable currencies mentioned in USDx, 100% belong to USDC and TUSD And PAX, these are all derived from highly regulated and highly transparent fiat currency stablecoins, 1:1 anchored to the real US dollar, and are regularly audited. It can be said that USDx also indirectly has a strong endorsement.

2. Collect rent (don’t worry about the systemic risk of a single stable currency)

Our price index is rising every year. This is inflation. If you just hold cash tightly, you will be able to buy fewer items after that year. How to fight inflation requires putting idle currency into the investment market , the simplest and least risky option is to put currency into the bank and get interest on living or fixed deposits.

Compared with other stablecoins, USDx has the function of self-earning interest, holding USDx can put it into the dForce ecosystemhttp://Lendf.MeIn the agreement or in other agreements, USDx can continue to increase in value (annualization is currently about 8%), deposit and withdraw at any time, decentralization without the risk of middle parties.

3. Fast running (convenient OTC channels and liquidity)

USDx has already negotiated cooperation with several well-known wallets and exchanges in the industry at the beginning of its launch, providing USDx holders with convenient legal currency deposit and withdrawal channels and rich trading options on exchanges in the future. Assets without liquidity are It is difficult to be valuable, and USDx has fully considered this point at the beginning of its design. In addition, our partners have rich quantitative backgrounds and will make a significant contribution to the depth of USDx trading pairs in the future.

Sleeping well, collecting rent, and running fast, the three-point feature of USDx is to give every user the smoothest experience. In addition, USDx, as the cornerstone of new finance in the future, also has the following characteristics.

(1) Stability

As mentioned above, USDx is inherently stable through a basket of high-quality stablecoins. On the other hand, stability comes from whether the arbitrage behavior is smooth. When the price deviates, the effective market can quickly repair the price difference, such as the market price of USDx It is 1.1 US dollars, and the total collateral behind it is 1 US dollar. At this time, arbitrage opportunities will appear. Arbitrageurs have the motivation to pledge the stable coins (USDC, PAX, TUSD) of USDx into the contract to create USDx, and finally use 1.1 in the market. Sell ​​at the price of US dollars, and continue to carry out this process until the market price of USDx returns to the normal level of 1 US dollar. This arbitrage behavior also helps USDx restore price stability.

(2) Dispersion

Don’t put all your eggs in one basket. This is a popular saying. Although compliant fiat-based stablecoins are inherently stable, everything has risks. Stable fiat-based currencies also have regulatory risks. If a country’s government decides to ban its license There will be market panic problems. USDx can avoid the systemic risk of a single stable currency through a basket. Friends who have studied investment must also know that dispersion can create a combination of lower volatility.

(3) Interchangeability

Cash is the currency with the best interchangeability. The interchangeability means that no matter whether it is held by a prince or a commoner, you can buy things of equivalent value in different places. On-chain stablecoins are better than fiat currencies in terms of interchangeability. Stable currency, because legal currency stable currency may face some addresses being blocked by government supervision due to force majeure, which also explains why hackers do not steal legal currency stable currency such as USDT, and USDx is a stable currency with high interchangeability Tokens, the generation process only needs to interact with the agreement without legal consent and supervision.

(4) Scalability and programmability

Scalability can be divided into two dimensions, one is the scalability of circulation, and the other is the scalability of applications.

The scalability of the circulation is best with fiat-based stablecoins, which can be issued unlimitedly as long as you deposit enough USD, while the mortgage-type stablecoin DAI is limited by the amount of Ethereum assets mortgaged. USDx is a clever way to pledge cash There are fiat currency stable coins generated, with high scalability.

The scalability of the application is the change brought about by the programmability of tokens in the blockchain. For example, the stable currency of USDx can be updated through governance voting (such as the first voting resolution of USDx), instead of The rigid version will always remain the same, and because USDx is an open source protocol, any team can access USDx to enter their trading market (such as our upcoming cooperation with Hotbit Exchange), lending market and derivative market, etc., which is different from traditional financial The world is different. Any minor adjustment may need to be approved by the bank and the government before it can be changed. Moreover, the bigger the financial system is, the more difficult it is to change. The fiat currency stable currency needs to comply with regulations and not have such strong application scalability.

Finally, review it for everyone

USDx mainly emphasizes three points in the face of general users, stability, interest, and convenient deposit and withdrawal

In terms of the design of the stablecoin as the new financial bottom layer, it balances stability, scalability and interchangeability, and is a better stablecoin protocol that can last for a long time.

In the future, USDx will carry the application of dForce and more new financial ecology, creating a more innovative and efficient system.