The surge of USDT on the EOS chain releases the signal of DeFi's momentum
Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: JX kin, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: JX kin, reproduced by Odaily with authorization.
From August 29th to September 5th, within a week, Tether issued additional USDT on the EOS chain three times, totaling 85 million USDT. You know, there are only more than 90 million USDT on the EOS chain.
The outside world points partly to the rise of the DeFi protocol in the EOS ecosystem. Low-volatility stablecoins are important pledge assets for users to participate in liquidity mining, which has been reflected in Ethereum.
On September 6, the exchange volume flowing into the new protocol Defibox within 24 hours exceeded 14 million EOS, with a market value of 42 million US dollars (about 270 million yuan).
However, in the recent speeches of industry opinion leaders, EOS was suspected of creating fake DeFi due to the "modifiable characteristics" of the contract and the "audited, not open source" of the agreement.
According to Denny, a member of the Defibox Foundation, "This is a misunderstanding." He explained that the smart contract on EOS can solve the outside world's concerns about its pseudo-decentralization through multi-signature. "If you want to change the smart contract, you must at least Changes can only be made with the consent of more than 3 supernodes, and it is not easy to obtain the consent of supernodes.”
The additional issuance of USDT on the EOS chain has released a signal that the demand for pledge funds is increasing when liquidity mining participants use the "Yuzu" DeFi application. Various market changes may make developers pay attention to this old public chain again. The advantages of concurrency and low cost.
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The EOS version of USDT issued 85 million more a week
After three additional issuances, the total amount of USDT issued based on EOS has reached 90 million. In other words, before this, the EOS version of USDT was only 5 million pieces.
Tether didn't seem to think highly of EOS in the past, which is related to the insufficient demand for USDT on the EOS chain. This situation seems to be broken at the end of August.
Some users said that users used USDT to make markets on the Defibox protocol, and the previously issued more than 5 million USDT had already been evacuated.
Defibox is a DEX-like decentralized financial protocol built on the EOS chain in July this year. Its official data shows that on September 11, the 24-hour exchange volume on Defibox was 4.849 million EOS, with a market value of 13.09 million U.S. dollars (about 92 million yuan).
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In the DeFi ecosystem, stablecoins are crucial. The use of stablecoin market making can greatly reduce the risk of assets being liquidated due to currency price fluctuations. Additionally, it acts as a pricing and medium of exchange. Recently, when talking about the infrastructure that needs to be built for the development of DeFi on public chains other than Ethereum, Huang Minqiang, founder of GXB, pointed out that stablecoins are one of the basic conditions.
The DeFi protocol is becoming a mainstream application in the EOS ecosystem.
Defibox, which was launched in July, has temporarily shown its edge due to its market-making and mining mechanism. The peak locked amount is 16 million EOS, and the market value exceeds 45 million US dollars. On September 10, the locked amount of the agreement was 8.44 million EOS, with a market value of 22.79 million US dollars, firmly sitting on the top spot of DEX in the EOS ecosystem. If you compare the popular Defi protocols in the market by the locked amount, it can be ranked in the top 20.
The DeFi fire seems to be burning from Ethereum to EOS. One indicator is protocol tokens being listed on multiple centralized exchanges. Defibox relies on the governance token BOX generated by liquidity mining, and has launched DragonEX, BiKi, Hufu and many other CEXs.
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EOS contract cites "modification" to question how to solve the problem of multi-signature?
The DeFi ecology on EOS has shown an upward momentum, and doubts have also followed.
Although there are many DeFi assets listed on Hufu Exchange, its founder Wang Ruixi recently stated on Weibo that the contract feature of EOS is modifiable, so don’t blindly believe in auditing, “Because most of the contracts on EOS are not open source at present, auditing Having no open source is the same as not having an audit, and if something goes wrong, the audit will be blamed, and the gain outweighs the loss.”
This statement raised questions from the outside world. If the contract can be modified, wouldn’t the DeFi protocol built on EOS be very insecure? Some users worry about the emergence of pseudo DeFi on EOS. In the past two days, the incident of the "Emerald" agreement running away has aggravated the doubts of the outside world.
Denny, a member of the Defibox Foundation, said that there may be some misunderstandings about the modifiable code of the EOS smart contract. Although it has been criticized as compared with the smart contract of Ethereum, it can be changed at will, but Defibox has added multi-signature (Multi-signature), which requires multiple Modifications can only be made after the signature of the super node is agreed, which can solve this concern. He explained that multi-signature means that if you change the content of the smart contract, you need the consent of multiple supernodes to change it. EOS is a DPos mechanism, and 21 supernodes take turns to produce blocks, so supernodes have strong credibility.
Denny has been developing on the EOS chain for many years. He pointed out that super nodes do have a certain right to speak, but they will not agree to modify the plan at will, because the process is not simple.
When can the modification of the smart contract be approved by the nodes?
In Denny’s view, compared with Ethereum, EOS’s security audit + super node multi-signature method is to a certain extent to prevent smart contracts from doing evil. At the same time, this method also supports the rapid upgrade of smart contracts without user transfer. Assets are basically close to the non-inductive upgrade of the traditional Internet. "This feature is the reason for EOS's high concurrency rate and low transaction costs."
He revealed that Defibox chose to build on EOS because of its good network performance. "EOS transfers do not require handling fees, the block generation time is 0.5 seconds, and the concurrency performance is stronger. The highest number of concurrent transactions on EOS has reached 3996 transactions per transaction." seconds, much stronger than the congested Ethereum.”
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Both developers and users are eyeing the "value depression" of EOS
Indeed, Ethereum has been popular in the DeFi market for two months, and EOS, which has always been known for its high speed and low cost, has never seen any explosive DeFi applications. At the beginning of July, some community members in the ecology were already anxious.
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The amount locked in the Ethereum DeFi protocol is 13 times that of EOS
Data from DAppTotal shows that currently, the locked-up amount of the Defi protocol on Ethereum is 6.69 million ETH, which is equivalent to about 2.47 billion U.S. dollars; in contrast, the locked-up amount of the Defi protocol on the EOS chain is 69 million EOS, which is equivalent to about 190 million U.S. dollars. In dollars, the difference is not small.
Corresponding to this is the low price of EOS. According to Feixiaohao, as of September 10, ETH has increased by 183% this year, while EOS has only increased by 5.3%. But recently, as DeFi has started to make efforts on EOS, it has also boosted its short-term increase of up to 50%.
Today, the surge of USDT on the EOS chain has released a signal that liquidity mining participants are increasing their demand for EOS DeFi protocol capital pledges. Together with the continued efforts of the new protocol Defibox, these have given hope to the ecology.
Looking forward to EOS and its users on the chain. Investor Albert started to use Defibox in the early days of its launch. He used hundreds of thousands of assets to participate in mining, and also bought BOX in the secondary market. Due to the early participation in the market, he is still in a profitable state.
Albert believes that EOS is in a value depression, and popular protocols like Defibox are the boosters of EOS. Referring to Ethereum, once an Internet celebrity project appears, it will have a driving effect. The EOS network itself is not bad. "As long as ecological developers seize the opportunity to make innovative projects, EOS will be replaced with new machines."
