- What is WaykiChain Defi ecosystem?
Defi means Decentralized Finance and also be known as open finance. Now, WaykiChain is developing decentralized financial services based on the stablecoin (WUSD) that is developed on the underlying public chain.
The Defi system that WaykiChain is going to achieve is a decentralized bank without borders. Users can enjoy lower interest rates to do deposits, loans, exchange, buy financial products and other financial services on WaykiChain Defi ecosystem.
Compared with the traditional pledge loan, Defi is more open and transparent. For traditional loans, for example, banks need to check the user’s credit history to comprehensively judge how much money can be loaned to the user. This process is complicated. Recently, small online loans are popular, however, its security, such as users’ identity privacy, cannot be effectively guaranteed.
Decentralized lending does not need to worry about the above problems. It does not need identity authentication and does not need to worry about security issues, which can greatly protect the rights and interests of users.
Compared with the other projects’ Defi products, WaykiChain Defi products are currently developed on the bottom of the public chain. The public chain WaykiChain owns is the world-leading public chain with high performance and complete infrastructure. Its transaction throughput, transaction speed, scalability, convenience, security, etc. are more advantageous than the contract layer. The business model of WaykiChain is also more forward-looking. Products have a high degree of fit with the market.
2. WUSD Brief Introduction
WaykiChain WUSD, the first stablecoin developed on Core Layer of the public chain, is issued through over-collateralization with value anchored to USD. WaykiChain public chain produces a block every 3 seconds, hence allows the faster transfer speed. WUSD can be generated by collateralizing WICC. Meanwhile, WaykiChain stablecoin WUSD has made innovative breakthroughs in the aspects of transparency, security, and circulation efficiency.
Since WaykiChain has launched the Defi platform, it has collateralized over 30 million WICC and issued over USD 1.4 million in WUSD. WaykiChain plans to complete the cross-chain process of BTC and ETH in the second half of 2020. After the completion of the decentralized cross-chain process, BTC and ETH are going to be supported as the collateral assets to generate WUSD.
3. WUSD Application Scenarios
At present, WUSD has a variety of application scenarios. Firstly, users can use WUSD to buy HK and US Pre-IPO stocks through HuaTong Security to obtain handsome profits. Secondly, users can also use the CDP mortgage loan to lend WUSD to increase liquidity and meet the needs of other financial activities, such as adding capital leverage, International market arbitrage, and selling WUSD to obtain cash.
WaykiChain plans to launch a new application in July and August. At that time, users can conduct decentralized transactions in WaykiTimes, such as Hong Kong stocks, US stocks, and some futures products similar to oil futures.
Regarding exchange cooperation, WaykiChain has only established cooperation with AEX exchange at present. Now there are trading pairs on AEX Exchange. WUSD / USDT and WUSD / CNC can be cashed directly on the AEX platform. In the future, WaykiChain also has plans to cooperate with some top-level exchanges in-depth, the specific trade opening time is subject to the official announcement.
4. How to get WUSD?
1) Collateralizing WICC to generate WUSD through the CDP system in the official website of WaykiChain Stablecoin (Link: cdp.waykichain.com) or the mobile App WaykiTimes (Downloading link: https://sw91.net/appdl/waykiTimes/download.html)
2) Obtained through the WICC / WUSD trading pair on the WaykiChain Decentralized Exchange (DEX). This can be operated on the official website of WaykiChain DEX (Link: dex.waykichain.com), and the mobile app WaykiTimes (Downloading link: https://sw91.net/appdl/waykiTimes/download.html)
3) Obtained on the AEX exchange through WUSD/CNC, WUSD/USDT trading pairs. AEX Exchange official website( Link: www.aex88.com)
5. How much is the interest rate and how is it calculated? Is the mortgage interest rate calculated based on the amount of WUSD loaned or WICC?
In the CDP system, interest is named as stable fees and calculated based on the amount of WUSD loaned. Now, interest needs to be paid by WUSD. The interest rate for stable fees=a/lg（1+bN), In this formula, a and b are constants and N represents WUSD borrowed by the Pledgor. Such interest rate is an annualized rate, and changes as an exponent. The more WUSD the Pledgor borrows, the lower such interest rate will be. The initial values set in the system: a=0.2, b=1
In general, when lending about 10,000 WUSD, the interest rate will fluctuate around 5%. If the Pledgor collateralizes more, the interest will be lower.
6. How to ensure the stability of the value of WUSD?
The collateral rate in WaykiChain CDP system is 300% now. It means that when you use 300$ worth of WICC to do collateralization, you can only get 100$ worth of WUSD. This over-collateralization guarantees the stability of the stablecoin, and help to avoid insolvency.
In order to maintain the stability of the value of WUSD, the CDP system needs to ensure that there is sufficient decentralized asset collateral behind each issued WUSD to endorse it. Therefore, the system introduced the Clearing Mechanism to clear abnormal CDPs that are insolvent. At the same time, it also reserves a portion of the risk reserve to deal with the huge fluctuations in digital currencies caused by the Black Swan incident.
7. What is the difference between selling WICC to replace WUSD and collateralizing WICC for WUSD?
If you sell WICC now and replace it with WUSD, then when the price of WICC rises, you will not be able to get the profits brought by the rise of WICC. If you gain WUSD by collateralizing WICC, you still own WICC and WUSD after collateralization. So you will not miss the profit brought by the rise of WICC, but also own WUSD which you can also use it to do other financial services to get profits.
8. Will rising WICC prices lead to large redemptions?
Don’t worry about this issue. After the number of pledgors and collateral reaches a certain level in the CDP system, it means that WaykiChain Defi ecology is developing. It is a normal reaction for someone to redeem or someone to collateral. On the contrary, after the price of WICC rises, the market’s popularity will be higher, and it will bring more users, less circulating chips, more people will be attracted, and the amount of collateral is likely to continue to grow.
These are frequent questions about WaykiChain Defi ecosystem. If you have any other questions about WaykiChain Defi ecosystem, please leave your questions here. We will collect and give feedback later.
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