As an analyst with a background in decentralized finance (DeFi) and stablecoins, I find Rune Christensen’s latest announcement regarding the introduction of PureDAI and NewStable intriguing. Christensen’s experience with scaling Dai and its dual nature as a decentralized stablecoin tied to real-world assets and a completely decentralized alternative is noteworthy.
As a researcher studying the developments within the MakerDAO ecosystem, I’d like to share some recent announcements made by its founder, Rune Christensen. He has unveiled two new stablecoins – PureDAI and NewStable – under the umbrella of the contentious Endgame plan for the protocol.
Exploring Harmony in Decentralized Stablecoins: Bridging the Gap Between Pure Decentralization and Functionality
Since its inception, Dai has navigated between two distinct spheres.
One sphere embodies the ethos of unadulterated decentralization, a principle pioneered by Bitcoin. The other represents the founding intent of Dai, which is to…
(Note: This paraphrasing aims to preserve the original meaning and flow while using more natural and easy-to-read language.)
— Rune (@RuneKek) May 15, 2024
As a researcher studying the developments in the stablecoin industry, I’ve noticed an intriguing shift with DAI since its scaling efforts began. With a market capitalization of over $5.4 billion and ranking third in the stablecoin sector, DAI is poised for replacement by these emerging tokens.
Christensen aims to strike a balance between two decentralized stablecoin strategies: prioritizing functionality and expansiveness with a dollar peg backed by tangible assets, and striving for complete autonomy from centralized oversight.
PureDai functions as a decentralized alternative to US dollar-pegged stablecoins, operating exclusively on the Ethereum mainnet. This stablecoin is governed independently through decentralized oracles and relies on ether and Lido staked ether (stETH) for backing.
According to Christensen, when PureDai was launched, it aimed to attract users who are committed to a completely decentralized approach. Furthermore, this decentralized stablecoin comes with a free-floating peg, meaning its value may not be directly linked to the dollar.
NewStable is anticipated to serve as the principal successor to DAI, with a focus on expansion, income generation, and robustness. It will adopt MakerDAO’s RWA (Risk Weighted Assets) feature while maintaining a connection to Maker. Additionally, it will introduce a freeze function similar to that of other RWA-backed stablecoins.
Christensen noted that those preferring complete decentralization can look forward to using two stablecoins: PureDai and NewStable, when they’re released in the coming years. PureDai represents an entirely decentralized option for these users.
Based on Christensen’s announcement, there is going to be a burn mechanism implemented, along with an inaugural distribution of 2 billion PureDAI governance tokens. These tokens will be handed out in portions of 400 million during the span of five years.
Read More
- 15 Charged for converting Drug Cartels’ Cash into Cryptocurrency in U.S.
- XRP Price Eyes $2 Support Level Amidst Market Correction
- OREO Unveils Six New Products for 2025
- ‘Brides’ Finds a Distributor in Neon for Latest New Vampire Horror Movie
- PYTH PREDICTION. PYTH cryptocurrency
- Google’s Willow Quantum Chip Sparks Bitcoin Security Debate
- India signals no fixed timeline for crypto rules, calls for global alliance
- Apple Lands Anya Taylor-Joy Led Drama ‘Lucky,’ Based on Bestseller
- BlackRock’s IBIT ETF Surpasses 300K BTC Milestone
- Ben Affleck And Matt Damon Are Back To Work Together, And An Insider Weighed In On Their Longtime Connection
2024-05-18 10:44