In last year's Curve War, Redacted, a liquid bribery market operator, launched the voting aggregator Redacted Cartel, successfully occupying a place in the bribery market. This year, as the Ethereum Shapella (Shanghai + Capella) upgrade is approaching, the Liquid Staking Derivatives (LSD) sector continues to explode, and Redacted has entered the game again.

last night,Redacted Official AccountAccording to the document, the Redacted core development team officially built and launched the "Dinero Protocol" on behalf of Redacted DAO, which mainly consists of three parts: the liquid pledged token Pirex ETH; the decentralized over-collateralized stablecoin DINERO; the public and permissionless RPC relay Redacted Relayer.

Users can obtain liquid pledged tokens, called Pirex ETH or pxETH, through the Dinero protocol product Pirex pledged ETH. These tokens will be deposited into the Ethereum network as part of the Dinero validator; the Dinero validator will run a custom Ethereum execution client integrated with a decentralized smart contract for key management. In addition, Dinero will use Redacted's governance capabilities to provide liquidity for pxETH, and users can also choose to wait for the main network to open ETH withdrawals to avoid slippage.

The base currency of the Dinero protocol is the stable currency DINERO, which is mainly generated by the excess collateral of ETH and pxETH (the mortgage rate is unknown); considering that the liquidity of pxETH is lower than that of ETH, the pxETH vault will implement stricter risk parameters.

In order to keep the price of DINERO stable at $1, the protocol will also introduce a Pegged Stability Module (PSM) and accept USDC as collateral. Considering that the USDC had been severely de-anchored last month, in order to reduce the risk of the centralized system, the Dinero protocol will reduce its dependence on PSM price stability in the future and explore the use of other stable coins. The liquidity of DINERO will also depend on the governance capabilities of Redacted DAO. (Note: Redacted’s governance ability is reflected in the fact that it has a large number of CVX and CRV, which can affect the governance of protocols such as Curve and compete for liquidity for pxETH and DINERO.)

There are two main oracle machines (Oracles) in the Dinero protocol: one is Chainlink as the main Oracles, and the other is selected by DAO voting and used as a backup when there is a problem with Chainlink's price feedback. When the price falls and collateral needs to be liquidated, the Dinero protocol uses a Dutch auction - start with a high price and lower the price over time; when someone bids, the auction will be settled instantly, which allows Dinero's collateral auction to be held in one block completed within a day, increasing efficiency for custodians and agreements. (Note: Maker liquidation adopts the auction mode within a certain period, and the increase of each auction is 3%.)

Recently, a hacker made a profit of 25 million US dollars by attacking the MEV robot by becoming a blockchain validator. The Dinero protocol launched pxETH and the ultimate goal of DINERO is to use the underlying collateral ETH to build a block validator and a decentralized RPC relay Redacted Relayer to protect Dinero users from MEV attacks.

Redacted Relayer supports Meta Transactions, value capture of pxETH and finally private transactions. The so-called meta transaction refers to allowing users to interact with the Ethereum blockchain without requiring them to pay network transaction fees in ETH. Redacted Relayer allows DINERO holders to conduct network transactions without paying ETH (only need to pay DINERO stablecoins), thereby eliminating the need for ETH-the operating logic behind it is that the DINERO stablecoins paid by users enter Redacted Relayer account, and then Redacted Relayer uses its own ETH to pay network GAS.

"The Dinero protocol is a manifestation of Redacted DAO's move from the application layer to the consensus layer. By combining these three primitives, Dinero will provide unprecedented access to Ethereum block space. Dinero will provide a new use case for stablecoins, Serving the untapped part of the encrypted economy.” In the white paper preview version (Litepaper), Redacted explained that the relevant details have not yet been formally determined, and further optimization iterations will be made in the future.