And, we take a closer look at two top decentralized Dapps on Stacks. Andย once using Stacks, youย must a Bitcoin-compatible wallet. This video describes how to install and use such a wallet.
Now, letโs 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 cryptoย stablecoin. You mint the USDA cryptoย 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. Toย putย itย anotherย way, itโs a self-repaying loan. Itโs Decentralizedย Finance, so there are no middlemen.
Reportsย 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. Reportsย by their own website, they likewise have $4.852 Million TVL in their vaults. Thatโs 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 theย image below.
Source: Arkadiko
Other features the platform offers are:
- Swap
- Liquidity pools
- Staking DIKO. (Thatโs the native governance token).
There have likewise been talks of adding Bitcoinย (BTC) and USDC as collateral. Furthermore, Arkadiko has had plentyย 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:
Source: Twitter
Arkadiko is a DAO. Thisย 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 Stacksโ 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 minersโ revenue, 30 percent goes to the digital wallet of your preferred city. Toย putย itย anotherย way, you can earn free cryptocurrency for your fave city. Here is a use case for Citycoins:
Source: Twitter.
To make this setup easy, there are numerous cryptoย tokens. Each takingย partย city has its own cryptoย 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 isย still endorsed the proposition. This is how it works:ย
- Any user can nominate a city.
- A vote comesย 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.ย
Mining CityCoins and Rewardsย
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. Thereย is a new block every 10 minutes. Miners can bid on up to 30 blocks.
Now 30 percent goes to the cityโs wallet and 70 percent goes to stackers. To clarify, the latter are the users of the platform. Forย instance, you can stack 10,000 CityCoins. Followingย 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.
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.
Theย present price of the STX token is $0.6024. It has a marketย capitalization of $832 Million. The max and total supply of STX cryptoย tokens is 1.818 billion. Asย ofย now, 1.318 STX cryptoย tokens already circulate.
The STX cryptoย token is available on severalย 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.
