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The market is filled with the smell of a bull market.
Algorithmic stablecoin, a DeFi product full of speculative properties, is growing wildly in the taste of the bull market. Algorithmic stablecoin has a nice name: Wild Federal Reserve.
The Fed prints US banknotes and the wild Fed prints stable currency. The threshold for opening a wild Fed is very low. Fork can play with a Basis. From modifying some rules of the basis, to moving the basis to other public chains, we will walk the path of Basis again.
All this seems so familiar. It is similar to the DeFi Crazy Dolls in September. It will produce a bunch of fruits, a bunch of seafood, and now a batch of wild feds.
In the DeFi Crazy Dolls in September, some made a lot of money and some were cut off. I believe this will continue to happen in the wave of algorithmic stablecoins. If you are not familiar with algorithmic stablecoins, don’t blindly rush, it is likely that you are the one who took the order. After all, algorithmic stablecoins are still in the zjp stage.
The madness of DeFi in September left many good DeFi products. After this wave of algorithms has stabilized after the craze has passed, it will also leave some wild Federal Reserves to challenge the USDT and other stable currency markets.
1. The wild Fed is sprouting in various public chains, and the danger is spreading
The Wild Fed has gone through three stages: 1. AMPL model; 2. ESD model; 3. Basis model.
At present, the main imitations in the market are the Basis model, such as MIS on the Ethereum, BAG on the Huobi Smart Chain, and the upcoming algorithmic stablecoins on TRON. They all directly copy the Basis model, and there is no difference.
Basis, the originator of the third generation of algorithmic stablecoins, at the time of writing, the BAC-DAI fund pool is 156 million US dollars, which is the largest of all algorithmic stable currencies.
From the Basis imitation fund pool, MITH’s MIC-USDT fund pool is 76 million US dollars (the amount of funds changes relatively large, and it is best to check in real time), which is the largest imitation disk in the fund pool. It is very likely to operate Basis in the short term and become a fund pool. The biggest one. Basis and MITH are also the two largest locked-up funds among all algorithmic stablecoins.
From the perspective of the amount of new imitation mining funds, BasisGold on the Huobi HECO chain, as of writing, the amount of locked-up funds in the seed mining stage is 265 million US dollars.
Following the popularity of BasisGold, TRON is also preparing an imitation of the algorithmic stablecoin, as shown in the figure below. It is even more crazy. As of the time of writing, the related mining shovel has been crazy several times.
Of course, there are also many imitations of algorithmic stable coins on the Binance Smart Chain, and the game will soon be over. There are also imitations of algorithmic stablecoins on the EOS chain, which are still continuing.
In other words, algorithmic stablecoins, born from the ETH ecosystem, have spread to Binance Smart Chain BSC, Huobi Smart Chain HECO, EOS, and TRON, and these public chains have all imitated them.
2. Algorithmic stablecoins are high risk, but DeFi is very fragrant
The last time this happened was when DeFi was crazy in September 2020. Later everyone knew that the DeFi market collapsed and blood was flowing. The crazier the market, the more you must pay attention to safety.
But we must also see that these hotspots all come from DeFi. DeFi innovations can emerge from all corners of the world. Once a single spark is ignited, it can start a prairie fire.
Algorithmic stablecoins can be regarded as the first hot spot of DeFi in 2021, and there are second, third, etc. You don’t know where it will grow from, but it will definitely grow because the soil of DeFi is too fertile.
Although it is reminded that participating in the algorithmic stable currency is very risky, if you are not familiar with it, please play it carefully. But learning to understand DeFi is too important. When he comes up with the next hot spot, you can quickly get started and catch him.
Algorithmic stablecoin is a very important track in mid-2021. It is not clear what the track will look like. Although it is now in a dangerous position, after the risk, it will be a bright road, just like DeFi after the madness in September 2020, it is full of vitality.