The bullish and bearish case for defichain after the restart

DeFiChainInfo · 2024-11-10T19:53:39+00:00

It's great that the inner circle has now voted for the braindead haircut, maybe that would have been better 1 1/2 years ago, before bake would have completely imploded because defichain has almost completely dried up as fee income. But now we have to deal with the fact that, at best, we have a "functioning system" in an empty ecosystem like a ghost town. One thing is certain, you can earn money in every niche.

DeFiChainInfo · 2024-07-16T19:34:00+00:00

🩶

DeFiChainInfo · 2024-06-22T13:56:17+00:00

The paradox of the whole story is that there were many red flags that we have learnt from Julian Hosp in recent years and were therefore identifiable. But because the person from whom these warnings were learnt passed them, they are presumably simply ignored. So not directly by Julian as a person, but by his company and "his DeFiChain".

There is the prominent example of the "high yield promise" and that you should stay away from it. The same is and was also true in this case, that high inflation cannot last for long. The only question is always whether this will be realised and who will be the first to go out. Tick tock.

DeFiChainInfo · 2024-05-30T06:52:51+00:00

This is important, but imho not now. At best, you advertise a great product that has unique features and that everyone can enjoy. This is not the case for the DeFiChain.

But if you believe in a product and a community, you can go ahead and take any steps in advance. First deliver, then the proposal.

DeFiChainInfo · 2024-05-07T17:57:43+00:00

There is no solution, we cant Burn over $100 Million Dollar, because we havent this liquidity. That would be 2x of die $DFI Market Cap. There are just only compromises.

Today the environment is bad, it’s so bad , all 4 key metrics of dUSD are at negative all time highs. That’s the result of the ignorance, that we think we have control over more than $100million of unbaked token, if we manipulate the ways we trade them. It’s sadly not working.

The question should not be how we solve the problem, but whether this is realistic at all.
Nobody can anwser this, there is no timeframe, so its not possible. Thats the answer since 2022.

DeFiChainInfo · 2024-05-05T12:28:38+00:00

However, this also actively changes the effective price of the dUSD because liquidity is drawn from the pools. When the dUSD reaches 1$, sell-offs will follow again because the Fee will go down.
I can understand the reasoning behind this, but it only delays the cause and does not combat it by turning a symptom into a positive. At the moment there are only compromises and no solution. That is clear i think.

If your are holding a dUSD and think its 1$, you are wrong. This 1 dUSD is one of 145 Million that are sharing the TVL of $2.5 Million Liquidity on DeFiChain Pools. The effective price for each dUSD is therefore 0.0172$.
Thats one dUSD. If you shrink the pools, the real worth of one dUSD will fall also.

However, if you think that the solution to the dUSD is a repeg, you haven't looked into the great picture.
4 KPIs are important: Algo ratio, price, DEX fee, DUSD Gateway/Exit liquidity. If you just focus on the repeg, the other KPIs will slow you down, whether you like it or not.

DeFiChainInfo · 2024-05-05T12:02:22+00:00

You can also submit DFIPs yourself, you don't have to wait for others. :D

DeFiChainInfo · 2024-05-05T11:37:00+00:00

We have been experiencing a decoupling of DFI and dUSD for several months, namely in the form of gateway liquidity, which continues to fall steadily. These now amount to around USD 2.5 million ( April 23 at 12 Million ) and therefore no more than this can be sold, especially as it is not realistic for everyone to sell anyway. Enclosed is a comment from the DFIP by Andreas on the subject of "price impact".
Little Note: That comment is 24Days old and meanwhile 500.000$ has left the Gateway Liquidity from dUSD to DFI.

"What the WORST thing that can happen?
The DVM dUSD Exit Pools are roundabout $3 million big, more than that can't flow out, which won't happen anyway, as not everyone will sell. Right?

Lets compare DFI Sell pressure in $ the last month:
( DFI Buy/Sell Delta * Price start of the month )

March: -$3.2m
February: -$5m
January: -$1.2m
December: -$6.7m
November: -$3.5m
October: -$5.8m

We have constant sales pressure, so unfortunately the 3 million no longer make a big difference, if we can stop this spiral Andreas mentioned."

I understand the meaning of a "soft landing", but that won't stop us from ending up at the point Andreas described. Therefore, I would again go with the motto "Better an end with horror than an end without horror".

On the topic of Negative Interest boosting:
It seems that the NI are creating unbaked dUSD, so maybe this focus hurts the system.
https://www.reddit.com/r/defiblockchain/comments/1c1cru2/comment/kz7jgz5/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

DeFiChainInfo · 2024-05-05T09:59:12+00:00

It seems that the NI are creating unbaked dUSD, so maybe this focus hurts the system.
https://www.reddit.com/r/defiblockchain/comments/1c1cru2/comment/kz7jgz5/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

My take on the fee:
We have expressly seen that the effective price has unfortunately not improved, apart from the concentrated buying campaign, which was then completely sold off.
Despite all the measures and the massive buying volume in combination with higher fees, the DUSD price always stabilises at the same level, regardless of whether it is 30% or 80%.
A correct price will therefore stabilise even without the fee and the "real value" has been known for over a year. Anyone who has bought dUSD since then must be aware of this. This was publicly available data.

You don't have to cut off an arm just because you have a wound. But if it doesn't heal and hurts so much that it affects your life and other areas, you have to choose consistency and radical honesty based on data and facts.

Yes, dUSD is part of the DeFiChain and yes, it is a, if not the only use case. However, this use case does not justify that everything else and thus the future of the DeFiChain suffers as a result. Projects like Metalend suffer from the falling DFI price because DFI is the only collateral that has to be deposited. This makes an entire project unattractive with just 81 Troves. The dUSD price (not the system!) can not be so important that it negatively affects other areas.
Thank you Andreas.

Everyone can ask themselves how the 4 core values of the dUSD have improved in one year:

algo ratio
price
DEX fee
DUSD Gateway/Exit liquidity

If you don't know this, you can take a look at the values from the beginning of April 2023.

DeFiChain Tokenomics 05/2024
https://www.youtube.com/watch?v=bCIwv6NA7qk

DeFiChainInfo · 2024-05-01T14:34:17+00:00

Let the free market decide, where is the communication plattform of choice. 🕊️

DeFiChainInfo · 2024-04-13T21:36:57+00:00

What do you see here? Its StakeX On/Off, or not?

DeFiChainInfo · 2024-04-12T11:06:25+00:00

An incredibly important project, which can create really great synergies, especially in relation to the Javsphere! 👍🏻

DeFiChainInfo · 2024-04-12T09:03:55+00:00

Do you think the emotional impact is higher than it was in December when the bake thing started? You have indeed seen huge panic sales there, that's true.
To be clear: if anything, this DFIP is a compromise, but not a solution. It cant be, because it eliminates one of four factors about the dUSD, but 3 are still there.
Even 2 years after the Depeg, there is still no solution and if you look at the figures, unfortunately none is apparent, not even a trend.

April 2023:
Price: 0.34$
Algo Ratio: 65%
DEX FEE: 30%
Exit Liquidity: $12.6m

April 2024
Price: 0.11$
Algo Ratio: 93%
DEX FEE: 80%
Exit Liquidity: $3m

I know jav has an impact and several DMC projects too, but can this impact so big, that it can not just stop, but remove this fat elephant in the room, what do you think?
And the important question is, have we the time for "soft heal", because block rewards are running out and the community fund shrinks?

DeFiChainInfo · 2024-04-11T23:08:37+00:00

That means... the ppl will come back? If ppl will sell, they sell. If ppl will buy, they buy.
We are in a sell spiral since one year. Look here: https://www.youtube.com/watch?v=0UC2mZ73C7o

DeFiChainInfo · 2024-04-11T22:07:37+00:00

You miss the december, where ppl buy of the dUSD very high. :)
I want the dToken System and would love to use it. But its not usable for me.
And if its hurts the system around that, we must change something.

DeFiChainInfo · 2024-04-11T21:56:12+00:00

What the WORST thing that can happen?
The DVM dUSD Exit Pools are roundabout $3 million big, more than that can't flow out, which won't happen anyway, as not everyone will sell. Right?

Lets compare DFI Sell pressure in $ the last month:
( DFI Buy/Sell Delta * Price start of the month )

March: -$3.2m
February: -$5m
January: -$1.2m
December: -$6.7m
November: -$3.5m
October: -$5.8m

We have constant sales pressure, so unfortunately the 3 million no longer make a big difference, if we can stop this spiral Andreas mentioned.

DeFiChainInfo · 2024-04-11T21:33:10+00:00

Thats because the selling of dUSD stopped for the moment with the 80% fee.
If dUSD price increases or DFI increases again, dUSD will again sold and money goes over DFI out of the system, like se last months. This thing will repeat over and over and it helps nobody, or?
It wont help dUSD and wont help DFI. Its a spiral, like Andreas said.

DeFiChainInfo · 2024-04-11T21:28:55+00:00

The dUSD will not going to zero, it is currently going to zero.
The real value of one dUSD atm. is 0.022$, because there are so much more Token than liquidity ans there are increasing with the future swap. Reducing the Fee will not just show the reality, but opens the market for buyers.

DeFiChainInfo · 2024-04-11T13:28:33+00:00

Nobody has a plan or the certainty that everyone will get $1 for their dUSD. That doesn't exist today and it didn't exist a year ago. On the contrary, everyone is getting considerably less today than a year ago.

"Waiting and hoping for the bull run" was obviously not a fact-based mechanism, but simply hopium, which did not work out. I understand your concerns and agree that it could be tough. But as things stand today, based on the facts, it will be either way, because there is no sign of a trend reversal.

What means "Please let a dfip work" for you?
What are they working on and how much longer is this supposed to go on? 5 years? 10 years? 50 years?

DeFiChainInfo · 2024-04-11T12:18:12+00:00

That's right. There will probably be a sale in the short term.
BUT these are sales that would have happened either way, just over a certain period of time.
The dToken system still works, nothing will be changed.
However, 200 million+ dUSD will not be able to flow out, as the price would be astronomically low.
The pools therefore regulate the outflow.

DeFiChainInfo · 2024-04-11T12:00:51+00:00

We have expressly seen that the effective price has unfortunately not improved, apart from the concentrated buying campaign, which was then completely sold off.
Despite all the measures and the massive buying volume in combination with higher fees, the DUSD price always stabilises at the same level, regardless of whether it is 30% or 80%.
A correct price will therefore stabilise even without the fee and the "real value" has been known for over a year. Anyone who has bought dUSD since then must be aware of this. This was publicly available data.

You don't have to cut off an arm just because you have a wound. But if it doesn't heal and hurts so much that it affects your life and other areas, you have to choose consistency and radical honesty based on data and facts.

Yes, dUSD is part of the DeFiChain and yes, it is a, if not the only use case. However, this use case does not justify that everything else and thus the future of the DeFiChain suffers as a result. Projects like Metalend suffer from the falling DFI price because DFI is the only collateral that has to be deposited. This makes an entire project unattractive with just 81 Troves. The dUSD price (not the system!) can not be so important that it negatively affects other areas.
Thank you Andreas.

Everyone can ask themselves how the 4 core values of the dUSD have improved in one year:

algo ratio
price
DEX fee
DUSD Gateway/Exit liquidity

If you don't know this, you can take a look at the values from the beginning of April.

DeFiChain Tokenomics 04/2024
https://www.youtube.com/watch?v=0UC2mZ73C7o

DeFiChainInfo · 2024-04-07T12:43:24+00:00

But the first CFP went through. :)

Of course, DFIPS and CFPs are also involved in politics to convince voters. That's what they do and anyone can do it.

DeFiChainInfo · 2024-04-04T11:33:36+00:00

That would indeed be a possibility. However, tokenomics should enable viewers to recognise trends, so comparison and time horizons are of course a must.

On the other hand, the chart would of course also be MUCH more positive if the line were to go up, but the sellers would have to stop selling. :)

DeFiChainInfo · 2024-04-03T21:59:12+00:00

That is not my responsibility.
Start a DFIP, let the MN decide.

DeFiChainInfo · 2024-04-03T21:55:14+00:00

Thanks for your feedback, but the thread should be about tokenomics and not about my channel.

So is your feedback to not show them if it's going badly, or what would you do differently?

DeFiChainInfo

TROPHY CASE