Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
On September 2, Hester Peirce, Commissioner of the SEC Committee and "Cryptographic Old Godmother", said in an interview with the media that although DeFi is still in its infancy, the SEC has begun to pay attention to DeFi because the emergence of DeFi has changed the blockchain world The rules of the game, Peirce believes that decentralized finance will also challenge the SEC's regulatory approach.
Although Peirce's statement did not clearly reveal the SEC's attitude towards DeFi, the regulator's attention to DeFi can't help but remind practitioners of ICO (and STO in 2018), which was suddenly suspended in 2017. DeFi may also be Regulatory intervention?
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Why does DeFi, which advocates complete transparency on the chain, need privacy protection?
Therefore, it is speculated in the market that Zeus Capital’s public shorting of LINK this time will inevitably be targeted by Chainlink to snipe and blow up (there is no definite evidence to support this guess).
Do you still remember Zeus Capital who shorted LINK some time ago and liquidated nearly 20 million US dollars?
Chainlink token, the leading decentralized oracle machine, LINK, started to take off in July this year, and it took just over a month to skyrocket from $5 to a high of $20, an increase of more than 4 times.
Just when the LINK situation was in good shape, Zeus Capital, an overseas investment institution, issued a report on shorting LINK, and at the same time shorted LINK on Aave, a decentralized lending platform, but then LINK started a skyrocketing spiral, and Zeus Capital was liquidated for more than 1,700 Ten thousand U.S. dollars.
Zeus Capital first mortgaged nearly 22 million USDC from Aave, and then borrowed more than 15 million US dollars in LINK to sell short in the market. The entire liquidation (liquidation) process was "live" on the block browser Etherscan, and the liquidation price They are also calculated in advance and publicly available on Aave.
Therefore, it is speculated in the market that Zeus Capital’s public shorting of LINK this time will inevitably be targeted by Chainlink to snipe and blow up (there is no definite evidence to support this guess).
Imagine if the borrower can hide the amount of his collateral assets, will he still expose the transaction target and investment decision?
At present, there are really decentralized mortgage lending platforms that can meet such privacy protection needs of users.
According to Odaily, POFID DAO, a decentralized financial asset management platform developed based on the privacy public chain SERO, said that it can protect users' mortgage behavior and mortgage assets to a certain extent while supporting users' decentralized mortgage lending, specifically including: The following three aspects:
Account asset privacy. In the account in the POFID system, the user's encrypted assets cannot be queried through a block browser or other public methods, and only with the account query key can the account asset information be obtained.
Transaction privacy. The transaction or payment information sent between accounts cannot be publicly queried, and only the private keys or query keys of the accounts of both parties can know the content of the transaction.
Input and output privacy of smart contracts. Smart contracts, including currency management contracts, can selectively process privacy-protected input and output assets or other conditional data.
Have you noticed that POFID is bringing DeFi back to a user experience similar to centralized asset wallets (such as Alipay).
In response to the previous question that DeFi does not need privacy protection, Tony Tang, chief financial advisor of POFID DAO, believes that when blockchain technology is applied to real-life commercial activities, it cannot violate the most basic business common sense - privacy protection, and DeFi is the same . "In the real world, mortgage lending is a strong privacy behavior. Many borrowers don't want others to know what assets they have mortgaged to the platform, or even the existence of this lending behavior."
Tony Tang continued: "We should not regard privacy protection and access barriers as conflicting. These are two dimensions that do not interfere with each other: any user can use the SERO network without access, which is the same as SERO network protection. There is no conflict with user privacy. If there is a strong regulatory application, it is a collaboration between the application side and the regulator, and it is not a KYC imposed on any user."
The "openness and transparency" emphasized by the blockchain is unacceptable in some real scenarios.
Tony Tang used luxury goods suppliers as an example. Many of the suppliers of luxury goods (such as raw diamonds) come from countries or regions with unstable economies. The regulators in these regions will carry out strict control on the circulation of goods. Suppliers Without access to legal currency to collect payments, Bitcoin has become a good payment channel. However, suppliers do not want the behavior of depositing and withdrawing Bitcoin to be publicly available on the blockchain browser, and analyzed and marked by some professional institutions, so they need privacy protection.
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How to introduce non-homogeneous assets into the DeFi world as collateral?
As of August 28, the real assets submitted for application on the MakerDAO official forum include real estate, national debt, supply chain finance, gold and commodity indexes, mainly real assets in the financial field.
As of August 28, the real assets submitted for application on the MakerDAO official forum include real estate, national debt, supply chain finance, gold and commodity indexes, mainly real assets in the financial field.
However, the way MakerDAO introduces real assets as collateral is that the asset issuer needs to issue an ERC-20 token on the Ethereum network, which means that MakerDAO can only accept homogeneous assets as collateral. For example, the national bond fund Arca issues digital securities on the Ethereum network in the form of ArCoin. Users can invest in low-volatility assets by purchasing ArCoin, including 1-year, 2-10-year and 10-year U.S. government bonds.
POFID DAO not only accepts homogeneous assets as collateral, but also heterogeneous assets.
"The assets in the real world cannot be replaced by homogeneous assets of ERC-20 tokens. In terms of engineering, SERO uses the Vientiane pointer principle in C language to realize the storage of arbitrary complex assets on the underlying public chain of SERO. Data structure, this pointer uses two engineering techniques, Package and Ticket, to express and transfer assets to smart contracts for processing." Tony Tang introduced.
Therefore, in terms of introducing real assets as collateral, POFID DAO has stronger applicability and universality.
DMW (Decentralized Mortgage Warehouse) is POFID DAO's mortgage debt warehouse, which is responsible for keeping collateral. It is the carrier of various mortgages and embodies the core smart contract logic of POFID DAO.
Different from MakerDAO's CDP, DMW can carry non-homogeneous mortgage assets, including token types issued on various public chains, such as BTC, ETH, SERO, TRX, etc. MakerDAO's CDP currently only supports several cryptocurrencies including ETH, WBTC, BAT, KNC, etc. as collateral.
These homogeneous and heterogeneous assets introduced into POFID DAO are collectively called AOC (Assets On Chain). They can not only issue "digital IOUs" like DAI, but also issue portfolios with ordinary investment value asset tokens.
Therefore, in terms of introducing real assets as collateral, POFID DAO has stronger applicability and universality.
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Value Capture of Governance Tokens
PFID holders can enjoy the following ecological rights through staking behavior: PFID mining income, participation in platform governance decisions, and dividend income (such as lending fee income) in the entire POFID system.
PFID is the governance token of POFID DAO. It is not only a revenue certificate, but also a necessary condition for governance authority, and it is also the default global universal asset of the platform. It can be said that PFID holders control the operation of the entire POFID DAO system. The system includes distributed governance institutions or individuals such as underlying technical managers, DMW managers, risk control managers, and liquidation management committees.
PFID holders can enjoy the following ecological rights through staking behavior: PFID mining income, participation in platform governance decisions, and dividend income (such as lending fee income) in the entire POFID system.
In addition, it is understood that POFID DAO will start liquidity mining in the future. Unlike Compound, POFID DAO has designed an automatic increase and decrease contract for liquidity mining.
Because the underlying network of PFID is SERO, and PFID is not an ERC-20 token, the project party generates an ERC-20 PFID on Ethereum through mapping, and there will also be a SRC-20 PFID on the SERO chain. The increase and decrease contract makes ERC-20 PFID and SRC-20 PFID form a trade-off relationship, but the total amount of ERC-20 PFID and SRC-20 PFID remains constant.
Specifically, if the project party injects 1% of PFID into Uniswap's liquidity pool at the beginning, 99% of the PFID on the SERO chain will be left at this time. Once the 1% of PFID is mined, the automatic increase and decrease contract will It will automatically continue to inject 1% PFID into the Uniswap pool. At this time, 98% of the PFID on the SERO chain is left. If the PFID on the SERO chain increases by 1%, then the PFID in the Uniswap pool will decrease by 1% accordingly. The total amount of PFID is constant during the process.
A total of 10 million PFIDs will be produced, and the complete production cycle is 20 years. The specific distribution mechanism is as follows:
PFID holders share the seigniorage income according to their holdings, but each time they receive the seigniorage income, PFID will be locked for a period of time, unless the PFID holder gives up the seigniorage income.
In addition to adding a staking lock-up mechanism, POFID DAO's value capture in the real world far exceeds that of MakerDAO.
Based on POFID DAO's existing accessible and ongoing application expansion, POFID DAO can capture revenue sources in at least the following three huge areas: corporate finance (such as supply chain finance for cross-border trade), on-chain e-commerce Trusted payment solutions and asset management on the chain (including portfolio custody of digital assets, ETF of encrypted currency, clearing and settlement of derivatives on DEX, hierarchical equity management of digital securitization).
Taking cross-border trade as an example, an importer needs to pay cash to buy goods abroad, and has to go through delays in logistics, customs clearance, downstream customers' accounts, and foreign exchange purchases at the SAFE. On the blockchain, if all trade information can become transparent across borders, then financial institutions that allow digital currency business outside the country can use stable coins to finance traders on the blockchain, that is, advance purchases for him cash needed. Imagine the volume of cross-border trade, which can reach the level of hundreds of billions of dollars. The market value of the entire digital currency market is unattainable. It can be seen that the future market value of POFID DAO has a very large room for imagination.
To sum up, POFID DAO has jumped out of the category of "stable currency tools", and is more like a set of asset securitization tools. It is not a single-function application, it is a DeFi infrastructure, and it is used to support multiple chains. The infrastructure for advanced DeFi applications.
To sum up, POFID DAO is designed as a credible digital asset conversion channel. Through smart contract technology that supports privacy protection, real assets are mapped into quantifiable digital assets on the chain, and it can support both homogeneous assets and heterogeneous assets. Qualified assets are used as guarantees to generate other digital assets with different financial attributes, thereby deriving different financial products to provide better liquidity for these assets.
