👋 Hello xDAI, meet DAIX

[Elartistazo]

OH damn it those are GOOD news, thanks you. Nop you are not late, it is never late to know a new project.

[daibase]

Thanks for your good wishes, cryptoclip!

Answers to all of these questions exist in this thread alone, and we don’t have to to look anywhere else luckily.

Let’s run through them once again, because many people would have the same doubts, since Elastic Assets are widely misunderstood and presented in a warped perspective to con unsuspecting people.

Here we go!
(pardon me for the details)

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@cryptoclip

algorithmic stable coin with rebasing, however is not stable went from $1 to $0.06 cents

There is something called a “rebase lag” / “dampening factor” in these widely cloned (Note: DAIX is not a ‘fork’.) rebasing projects. It’s purpose is to apparently “smoothen out” any supply fluctuations.
All this is necessary on ETH, because sending rebasing transactions costs big money since ETH is 4000x300 (1.2 million) times costlier than xDAI right now. It doesn’t make sense on Ethereum to transact rebasing functions every block, so these other projects introduce a superficial “lag” / “damp” the inflection.
Daibase on xDAI is as close to ideal Elastic money as possible. We rebase on-demand. Click the button, pay $0.000028 tx fee, and 1 DAIX becomes equal to 1 XDAI right away. Totally opposite to these YAM/AMPL forks who need to wait dozens of hours and days to adjust to the real-life markets. Those old-tech fake-promse projects even impose a “rebase window” condition—that is, if you don’t base it within that 5-10 minute window, supply adjustments don’t happen, and investors continue to suffer the unpegginess.
We don’t do such restrictive stuff at Daibase. You want the peg === you get the peg : as simple as that.

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@cryptoclip

By burning liquidity locked forever means people are forced to have DAIX tokens and can’t change back - so if it goes below the $1 stablecoin value then they lose money.

Burning liquidity shows our commitment to this Project. We might as well have pocketed it, used for “dev”, “infra costs”, (lol) etc., but burning it instills confidence in users that in whatever the events be, people always wield the ability to sell out their DAIX back for XDAI. It will be more cute if we agree to call it rug-proofing instead.

This is just the tip of our commitment iceberg. Daibase Protocol has a concept called “Protocol Controlled Value (PCV)”, wherein the Protocol itself re-balances liquidity permanent liquidity among the various pools. (Note: This Liquidity can only be moved around but not be withdrawn.)
Going to the deeper basis of our iceberg, you’ll discover that this PCV actually is owned by the holders of DAIX, proportional to their DAIX holdings! (Spoiler: We market DAIX as uncollateralized, but it is actually collateralized in reality.)
This is one among the many other innovations our project makes, and we call this aspect implicit collateralization. When there’s consensus between the holders of DAOX (Our governance token, forming the DaixDAO), they can vote in to “Dissolve the DAIX”. When this dissolution happens:

• The PCV is redeemed for DAI+DAIX
• The DAIX part is burned
• All other DAIX is counted (snapshot) & burned
• All DAIX holders are handed out DAI in proportion to their DAIX holdings.

By now, you might be able to see how we achieve our ever-increasing market-cap floor. People who mint & dump are actually helping the Protocol get overcollateralized.
This is counter-intuitive. But when you consider the fact that DAIX does not have a “pre-supply” or “pre-mint” or “pre-sale” or “private-allocation” or … you get it… , you will see how this is sustainable.
It is sustainable because there’s zero sell-pressure. Nobody who mints DAIX wants to sell DAIX. They mint DAIX to benefit from its features and perks, and not to make $1 = $2. This is a stablecoin, after all.

Did we mention that % of the money used to mint DAIX gets forever locked into liquidity? Well, you know this now.

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@cryptoclip

why someone would use DAIX

Holding DAIX has a lot of use-cases, but let us just focus on the perks here:

• DAIX transactions generate a small tax, that goes into the Protocol Revenues. This fund, as voted by the DaixDAO, gets used to incentivize the ecosystem―a.k.a. Farming, Staking and auto-compounding Vaults, besides other niche De-Fi yield generation mechanisms.
• The above incentives do not dilute shares, instead they concentrate them into the hands of holders and active participants.
• When the KingMaker is enabled, instead of earning DAIX, users get to earn any other asset, or even simple XDAI, as voted in by the DaixDAO. (Note: The KingMaker basiaclly generates XDAI as Protocol Revenue. The DaixDAO can decide to buy something else with this money and potentially help the other token’s community as well. A Quick-Example: This coming week, we are likely to market buy STAKE tokens to help revive the price of STAKE.)

Now, a short glimpse into what the “use-case” for DAIX is:
Even though a stablecoin, DAIX can be volatile temporarily. As with any other asset class, when demand is increased and supply remains still, the asset tends to appreciate in value. This could happen when someone, instead of minting DAIX, goes shopping at the DEX.

Highly Discouraged!
Always “mint” DAIX.
Never ‘buy DAIX’ at an AMM\DEX!
To mint DAIX, send a small amount of XDAI to 0x4Ef1d9A329a0CB0658156aFF55c406cC4393A987 with Gas Limit of 500000 (500k). Try with 0.001 XDAI if you just want to test this first

This could be a side-effect / benefit of exposing yourself to DAIX. It’s like market buying USDT to pump it to $1.01. We can try, but it’s bound to revert to $1. Other people would simply “mint DAIX” at $1 each and sell it to earn a profit from this arbitrage.
These concept are widely known as Cash Reserve Ratio and Sovereign Debt of a Central Bank (Throwback: Daibase Protocol– a [De-]Central Bank), i.e, the difference and proportions between Circulating Supply of DAIX and the Total Value Locked (into Liquidity). As of now, it stands at about $100, which means that the outstanding holders of the roughly 2000 DAIX have an unrealized/notional gain of $100, which is about 0.05 per DAIX, or 5% in profits.

What about… if… people… dump this?

Good question.
Even if 1900 of the 2000 DAIX sells out, the holders of the remaining 100 won’t be at a loss.

Why?

Because, The P.C.V. backs the Daibase Protocol.
So, when people dump DAIX, holders benefit and when people pump DAIX, holders benefit…as well.

This is the reason behind our “First-of-its-Kind ” and Purely Elastic tagline.

(Note: There’s a ton of use-cases for DAIX because it allows for “flash-minting” directly from any smart-contract too, and owing to its innovative interface IXD, smart contracts can use it to further execute more arbitrary logic on their mints, like the 14 examples we mention in our whitegoldpaper, or maybe something even more innovative.

Again, this is counter-intuitive, but facts are facts.
Feel free to ask more questions, and we will happily answer!

We’re building Daibase (slowly but steadily ) for the future of our mutual Defi Revolution … and not sure why, but we chose xDAI Chain as the first of our supported Chains (maybe the 1hive telegram was too warm and welcoming ).

‒ Chef

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[cryptoclip]

Thanks for very detailed and thorough explanation, this gives me the information I was looking for to make my mind up. I hope the project is a success for you

[project_uwb]

Mate… that was a detailed explanation and the time you must have spent to put it together shows your commitment. I have been in and out of your discord but was never really able to test out the dapp interface. I think this has now got me really interested. It looks like you have a really good grasp on elastic supply tokens and what their use cases are. Could i suggest that you may be do like a podcast or presentation in your discord for your users on educating them on DAIX but also elastic tokens in general and what your vision is? Would be great to learn, and would suggest if you could record it so that it could be used as an educational video/audio content. Cheers.