Discover the Hottest DeFi Dapps on Stacks

Discover the Hottest DeFi Dapps on Stacks


Discover two top decentralized Dapps on Stacks, a layer 2 chain built on Bitcoin that can handle smart contracts and Dapps, including Arkadiko Finance and CityCoins, which allow users to borrow stablecoins and earn rewards for their favorite cities.

You can compare Stacks to any layer 2 chain, but it’s built on Bitcoin. In contrast to  Bitcoin, it can handle smart contracts and Dapps. They cover all kinds of different fields, For instance, finance or Non-Fungible Token (NFTs), but likewise social or wallets.

And, we take a closer look at two top decentralized Dapps on Stacks. And once using Stacks, you must a Bitcoin-compatible wallet. This video describes how to install and use such a wallet.

Now, let’s see which are these 2 decentralized applications on Stacks.

1) Arkadiko

Arkadiko Finance is a decentralized and non-custodial liquidity protocol. With your STX tokens as collateral, you can borrow the soft-pegged USDA crypto stablecoin. You mint the USDA crypto token and your STX goes into a vault. Now, your STX generates yield. This yield pays off your loan. Paying off your loan takes around 3 years. And, no need for monthly payments. To put it another way, it’s a self-repaying loan. It’s Decentralized Finance, so there are no middlemen.

Reports by DeFiLlama, its current TVL is $1.492 Million. That puts them in the Second spot on Stacks, out of 5 protocols. Shortly after the protocol launched in 2021, its TVL hit $50 Million. Reports by their own website, they likewise have $4.852 Million TVL in their vaults. That’s except their own calculated $1.784 Million TVL. This is a deposit as liquidity for swapping. That brings their total TVL to $6.6 Million. See the image below.

Source: Arkadiko

Other features the platform offers are:

  • Swap
  • Liquidity pools
  • Staking DIKO. (That’s the native governance token).

There have likewise been talks of adding Bitcoin (BTC) and USDC as collateral. Furthermore, Arkadiko has had plenty of audits. This raises their security levels. Nonetheless, you want to make sure that you always have enough collateral. You can still get liquidated on Arkadiko. You can borrow USDA at a 25 percent Loan-To-Value setup. This is its roadmap:

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arkadiko roadmap

Source: Twitter

Arkadiko is a DAO. This implies that the users, or rather holders of DIKO, govern the platform.

2) CityCoins

CityCoins are closely linked to Stacks. Patrick Stanley launched the idea, and he designed Stacks’ Smart Contract Protocol. Not to mention that he built CityCoins on Stacks. Keep in mind, that CityCoins are privately owned. No Government or other public organization is part of it. Still, associated cities profit from the coins.

From all miners’ revenue, 30 percent goes to the digital wallet of your preferred city. To put it another way, you can earn free cryptocurrency for your fave city. Here is a use case for Citycoins:

citycoin use case

Source: Twitter.

To make this setup easy, there are numerous crypto tokens. Each taking part  city has its own crypto token. The 1st city to onboard was Miami. It has the MiamiCoin (MIA). That was back in August 2021. Do you still remember that? In November 2021, New York City followed suit. They have the NYCCoin. In 2022, there was talk of, between others, Austin, Texas joining CityCoins. Nonetheless, the mayor has not is still endorsed the proposition. This is how it works: 

  • Any user can nominate a city.
  • A vote comes after the nomination.
  • After a successful vote, your 1st step is to get the mayor on board.
  • Once he agrees to have a CityCoin, users can deploy the new coin.
  • As mentioned before, 30 percent of all revenue from a CityCoin goes to that cities digital wallet. 
Mining CityCoins and Rewards 

On a technical level, miners bid a number of STX tokens. And, the miner with the highest bid, in relation to the total bid, wins the bid. There is a new block every 10 minutes. Miners can bid on up to 30 blocks.

Now 30 percent goes to the city’s wallet and 70 percent goes to stackers. To clarify, the latter are the users of the platform. For instance, you can stack 10,000 CityCoins. Following the end of a stacking cycle, you get your CityCoins back and your share of STX bonus. Below is a picture that describes how the mining cycle works.

Stacks

Source: Make use of
Conclusion

We looked at two Dapps on the Stacks protocol. This is a kind of layer 2 solution but for Bitcoin. We looked at Arkadiko and CityCoins.

The present price of the STX token is $0.6024. It has a market capitalization of $832 Million. The max and total supply of STX crypto tokens is 1.818 billion. As of now, 1.318 STX crypto tokens already circulate.

The STX crypto token is available on several  exchanges, including Bybit. Did you know that Bybit is giving out up to $30,000 in bonuses & together with a brand-new iPhone 14? Just click this link to find out more. If you already have a Bybit account, you can still join by clicking this link.

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