Abstract:

• The US Department of Justice has arrested two Chinese citizens on charges related to an international cryptocurrency fraud case involving $73 million.

• This scam is called "Pig Killing Plate", involving money laundering through shell companies.

• The case highlights the growing scrutiny of "pig slaughter" schemes involving Crypto Assets.

The US Department of Justice (DOJ) has arrested two Chinese citizens, Daren Li and Yicheng Zhang, for orchestrating a large-scale cryptocurrency scam known as "Ponzi scheme," involving at least $73 million in money laundering activities.

This arrest operation highlights that "Ponzi scheme" fraud is still a major issue in the encryption industry.

The duo is an international fraud syndicate

According to the DOJ, officials arrested Li on April 12 at Hartsfield-Jackson Atlanta International Airport and transferred him to central California. Meanwhile, Zhang was arrested in Los Angeles.

The Deputy Attorney General of the Ministry of Justice, Lisa Monaco, said:

"We announce the arrest of two foreign citizens who are charged with leading a money laundering scheme associated with international cryptocurrency investment fraud. Cryptocurrency investment fraud exploits the borderless nature of virtual money and online communication to deceive victims."

The DOJ found that they coordinated extensively from communications to facilitate international Money Laundering, including discussing the network's commission structure, the various shorter shell companies used, victim information, and at least one video of an accomplice calling a U.S. financial institution.

Li and Zhang manage an international "pig slaughter" investment scam group. They instructed accomplices in Money Laundering networks to open bank accounts in the name of shorter shell companies. Once the victim sent the funds to the shorter shell company, Li and Zhang monitored the lower-level accomplices, transferring the proceeds to an overseas bank account at Deltec Bank in the Bahamas.

This plan involves converting over $73 million into USDT stablecoin. In addition, a cryptocurrency wallet in this plan has received over $341 million in virtual assets.

Li and Zhang are charged with conspiracy to commit money laundering and six substantive counts of international money laundering. If convicted, they face a maximum sentence of 20 years for each count.

The US Secret Service Assistant Director of Investigations, Brian Lambert, explained in response to this case that the US financial infrastructure is being threatened by sophisticated financial fraud schemes.

Lambert pointed out: "Complex financial fraud schemes like 'Ponzi schemes' pose an obvious and urgent threat to America's financial infrastructure, as countless Americans continue to fall victim to this predatory activity."

" "

The main types of cybercrime divided by number of complaints｜Source: Federal Bureau of Investigation

Lambert's statement is consistent with the data from the Federal Bureau of Investigation (FBI). According to the FBI's 2023 Internet Crime Report, investment fraud is the most costly crime event tracked by the IC3 program.

Investment fraud losses increased from $3.31 billion in 2022 to $4.57 billion in 2023, a rise of 38%. A total of 17,823 complaints related to trust/romance crimes were received throughout the year.

Analysis of the scam of "Ponzi Scheme" with false promises and empty wallets

'Pig Killing' scams involve scammers creating fake identities to contact potential victims, usually through text messages, social media platforms, or dating apps. Gradually, these scammers develop a seemingly real relationship with their target through regular and friendly interactions. This method is similar to the practice of fattening pigs before slaughter, hence the name.

Once a relationship is established, scammers introduce cryptocurrency into the conversation. They typically do not directly ask for money or cryptocurrency. Instead, they offer assistance with investment strategies and guide victims to platforms they control.

Initially, victims may transfer a small amount of funds to a cryptocurrency exchange. In order to make the scam credible, the fraudster provides false account information, showing that the victim's investment is increasing.

They may even allow the victim to withdraw part of their initial investment in order to appear legitimate. The scammers keep pressuring their victims to send more long funds until they run out of money completely.

A UN report describes the Mekong region in Southeast Asia as the epicenter of this criminal activity. More and more casinos are combining with the ungoverned borders and armed groups in long-standing conflicts in Myanmar. This backdrop creates ideal conditions for large-scale money laundering activities.

Conclusion:

This successful crackdown on the "Ponzi scheme" cryptocurrency fraud case demonstrates the cooperation and determination of international law enforcement agencies in combating cross-border financial crimes. The arrests and charges against Daren Li and Yicheng Zhang by the US Department of Justice send a clear warning to potential fraudsters: using cryptocurrency for illegal activities will be severely punished by the law, regardless of their location. This not only reflects the zero-tolerance attitude of the law towards financial crimes but also demonstrates a firm commitment to protecting investor interests and maintaining financial market order.

At the same time, this case also reminds investors and the public to increase their vigilance against cryptocurrency-related scams. Investors should conduct thorough investigations and risk assessments when investing in cryptocurrencies to avoid becoming victims of fraud. Regulatory agencies and law enforcement departments in various countries should strengthen cooperation, jointly formulate and implement effective regulatory policies to promote the healthy development of the cryptocurrency industry, ensure its full potential is realized, and minimize risks.

Summary:

• The Hong Kong Monetary Authority (HKMA) has approved the use of digital RMB (e-CNY) for retail purposes in Hong Kong, but not for cross-border transactions.

• The adoption of digital RMB in Hong Kong is subject to control and monitoring, with transaction and balance restrictions.

• Hong Kong, through China-approved pilot projects, is promoting the development of Digital RMB to improve the digital money ecosystem in Asia.

{"sl":"Chinese Simplified","text":" ","tl":"English"}

The Hong Kong Monetary Authority (HKMA) announced that it will accept China's digital renminbi (e-CNY) for retail transactions in Hong Kong. This initiative, supported by the People's Bank of China, represents an important step in integrating digital money into daily business.

Residents of Hong Kong and mainland China can now use digital renminbi to shop at physical retail stores in Hong Kong and selected online merchants. A mobile application developed by the Central Bank of China allows users to seamlessly manage their digital renminbi wallets.

Hong Kong only allows the use of RMB for local business

Despite the enthusiasm for digital integration, the program controls circulation by limiting cross-border transactions and peer-to-peer transfers. In Hong Kong, the operational framework of e-CNY sets the maximum wallet balance at 10,000 CNY, with individual transactions and daily expenses limited to 2,000 yuan and 5,000 yuan respectively. These restrictions are aimed at regulating the use of the currency and preventing financial disruptions.

Expanding digital RMB to Hong Kong aligns with broader efforts to internationalize China's currency in the highly competitive global financial market amidst geopolitical tensions. By June 2023, the transaction volume of e-CNY reached 1.8 trillion yuan, indicating rapid adoption by the Chinese population.

HKMA President Eddie Yue said, "By expanding the e-CNY pilot in Hong Kong... users can now deposit into their wallets anytime, anywhere without opening a mainland bank account, making it convenient for Hong Kong residents to make payments at mainland merchants."

e-CNY in Hong Kong | Source: X/HKMA

Currently, over 10 million merchants in 17 provinces and cities in mainland China accept digital Renminbi. This indicates a continuous rise in acceptance of digital money in the region.

Although the use of the CNY in the global financial system is limited, its adoption in the international market reflects China's strategic financial goals. The HKMA is collaborating with the People's Bank of China to explore the potential of cross-border e-CNY payments. This highlights its commitment to improving the practicality of digital money and interoperability with existing payment systems.

Conclusion:

With the approval of the Hong Kong Monetary Authority (HKMA) for the retail use of e-CNY, Hong Kong has taken an important step in promoting the localization of digital money. This move not only demonstrates China's strategic layout in the field of digital currency, but also reflects its vision of seeking greater influence in the international financial market.

Although the use of digital RMB in Hong Kong is currently restricted, with the deepening of pilot projects and the exploration of cross-border payment potential, digital RMB is expected to achieve broader application and deeper international integration in the future. As an international financial center, Hong Kong's innovative practices and regulatory experience in the field of digital money will provide valuable references and inspiration for the development of digital money worldwide.

The original text is: "原文作者：Bugsbunny—e/acc，加密 KOL"

The translated text is: "Original author: Bugsbunny—e/acc, encryption KOL"

VC Cost Dips Guide 1.1 (Revised Chinese Version)

Dare to provide you with a unique reference for catching the bottom from the "market capitalization-valuation" method in perhaps the whole Twitter.

1. Let me explain the meaning of "市值为 1-2 倍估值" in this table.

If VC cannot bring returns of more than 2 times, they would rather directly buy BTC (Fun fact: BTC had a rebound of nearly 80% this year).

When the coin price is at a valuation of 1-2 times, the project party buys back the coin from the VC, just like that.

(AltCoins' biggest selling pressure comes from unlocked coins) At this time, there is nothing more to sell, and market makers can inject liquidity at this time.

Why not look at the seed round valuation?

Seed round projects VC invests in 50, only one of them may succeed, but they should make money from it.

And the seed round valuation and unlock date are chaotic and unpredictable.

Why look at Market Cap instead of FDV?

Most blockchain projects are difficult to operate for more than 2 years, while FDV often starts at 5 years.

If calculated based on FDV, the significance of this table will be very poor.

4. How to use this guide?

Green represents the coin price within 1-2 times the market capitalization valuation.

The coin price is 2-3 times the valuation in blue.

Coins with no color filled in have a valuation that is more than three times higher.

Red means the price has fallen below the valuation.

In theory, market makers need to maintain their market capitalization within a range of 1-3 times the valuation, because there is no further room for decline (this is not the only metric but an important one that cannot be ignored).

So maintaining strong coin prices such as coins with a valuation of 2 times or more (blue marked or unmarked) means that market makers are of higher quality.

5. How are valuations obtained for projects that do not have valuations?

Data source @CoinMarketCap@RootDataLabs, token unlocks, thanks to the data support from these three service providers.

Some projects do not have a PR valuation, so we can only try to estimate it. Please don't criticize too harshly.

6. Note: Extra attention is needed. The highlighted part represents coins that will be unlocked in May and June, which may bring additional selling pressure to the market.

After unlocking, the table will update the relevant data.

Original Link

A trader who shared two tweets about memecoin Pacmoon, which is on the Blast network, received an airdrop worth $168,000.

The adoption and expansion of the cryptocurrency sector day by day are giving rise to new categories and trends. In particular, the memecoin space is defined as the wildest structure in the cryptocurrency sector. Memecoins offer sensational returns to early-stage investors, but they are also classified as risky assets.

A crypto trader named Punk9059 made $168,000 from a memecoin on the Blast network by just sending two tweets. The trader said, "The crazy thing is, I had no idea this would happen."

Big hit from Trader in the memecoin craze

Punk9059, explained how he made $168,000 in Pacmoon memecoin in the Blast ecosystem by just sending two tweets.

In the past few days, a story was written that could only happen in the world of cryptocurrencies and the wild nature of memecoins. A trader made hundreds of thousands of dollars by tweeting.

Pacmoon was launched on the Blast network towards the end of February. The memecoin gained popularity as the Blast network grew and reached a total locked value (TVL) of 1.4 billion dollars. Inspired by Pac-Man, the memecoin garnered significant attention and dramatically increased its user base.

MemeLand employee and former Proof employee Punk9059 shared two tweets about Pacmoon. These tweets would later make him rich.

Punk9059 said that there was news that the first tweet shared would result in a free airdrop of Pacmoon (PAC) tokens to Blast stakeholders. This tweet contained a referral code. The tweet quickly became popular, but due to a mistake, it benefited Punk9059 more than expected.

The trader who shed light on the matter said, "This tweet went viral. People copied and pasted the referral code. My friend Frank DeGods accidentally tweeted my code instead of his own."

Frank DeGods is known as the founder of DeGods and y00ts NFTs. Frank DeGods, who has a large following in X, unintentionally provided a huge gain to Punk9059 by sharing the reference code of Punk9059.

Punk9059, as a second tweet, shared a photo of him holding a $50 bill to thank Frank. This tweet also went viral and the lucky trader won more rewards.

Punk9059 received 354,179 PAC tokens from referral earnings. The trader also earned 698,137 PAC from the number of views of two viral tweets. The lucky individual won 1,052,316 PAC from the memecoin on the Blast network.

During the time of the tweets, the PAC token, which was relatively unknown and not valuable, experienced a sensational rise after the airdrops.

Trader, saw that the value of the airdrops he received reached $168,000 the other day.

Punk9059 said, "There were a few more tweets in the mix, but these two did the lion's share of the job."

This article does not contain any investment advice or recommendations. Every investment and trading activity carries risks, and readers should conduct their own research when making decisions.

Original | Odaily Planet Daily

How about the author?

In the past few weeks, more and more institutions have been disclosing their holdings of Bitcoin spot ETF to the SEC. According to Bitwise, as of last week, a total of 563 institutions have disclosed their holdings, with a total value of $3.5 billion. Bitwise expects the final number of institutional holdings to exceed 700, with assets under management exceeding $5 billion.

According to Blockworks data, the total AUM (Assets Under Management) of Bitcoin Spot ETF in the United States is currently 58.3 billion US dollars. If institutional holdings are only 5 billion US dollars, as predicted by Bitwise, who is buying the remaining assets of over 50 billion US dollars?

Actually, the $50 billion shortfall includes capital injections from the issuer before the Bitcoin spot ETF is launched. Excluding this factor, the institutions disclosed in the P13 document still hold a relatively small share, and the majority of the remaining funds come from small and medium-sized institutions and retail investors who do not meet the disclosure threshold of the P13 document.

Retail investors and small to medium-sized institutional investors dominate the Bitcoin spot ETF market, which may be attributed to the significant price increase and multiple breakthroughs in the past six months, driving retail investors to buy in.

In addition, although the proportion of Bitcoin spot ETF shares held by large institutions is relatively low, it has already exceeded other ETFs. In this article "Bitwise Chief Investment Officer: Who is Buying Bitcoin ETF?", the data of Bitcoin spot ETF and gold ETF are compared. In terms of institutional holdings alone, the number of Bitcoin spot ETF holdings has surpassed that of gold ETF at that time.

In general, Bitcoin Spot ETF is a good investment target for financial institutions, especially in the current international turmoil and uncertainty of the Fed's interest rate cuts. Traditional finance needs high-quality assets with certain risk resistance like Bitcoin to compensate for overall investment risk.

The previously disclosed list of well-known institutional holdings of Bitcoin, entitled "Unveiling BTC Spot ETF Holdings Institutions: Who is the Number One?," was previously compiled by Odaily Star Planet Daily. However, recently, there have been institutions with new holdings exceeding 100 million US dollars, including globally renowned institutions such as Morgan Stanley and UBS. As a result, Odaily Star Planet Daily has updated the previous chart inventory as follows.

As Bitcoin (BTC), the leading cryptocurrency, wraps up a positive week, which altcoins have started the weekend on an upward trajectory?

Spot Bitcoin saw a revival with the increasing demand for spot Bitcoin ETFs and the emergence of institutional spot Bitcoin ETFs. The pioneer of cryptocurrencies showed a positive outlook last week. BTC has experienced an increase of nearly 8% since May 13, the first trading day of the week.

With the rise in BTC, there has also been an influx of money into altcoins. Crypto investors believed that the correction process focused on agenda and news flow had come to an end.

With the end of an upward week, which altcoins started the weekend with movement? Here are the top five altcoins that rose the most today...

1- Gnosis (GNO)

Gnosis (GNO), which provides new mechanisms and active infrastructure support for decentralized finance (DeFi), has experienced a 10.67% increase in the last 24 hours. GNO, an Ethereum-based decentralized crypto project, has become the altcoin with the highest increase of the day.

According to data obtained from CoinMarketCap, GNO has achieved a trading volume of $24.52 million in the last 24 hours. GNO's market value is at $787 million.

2- Ondo (ONDO)

With the increasing development of artificial intelligence, Ondo (ONDO), which has gained popularity, experienced a 10.54% increase in the last 24 hours. ONDO, one of the most popular artificial intelligence initiatives of recent times, became the second most valuable altcoin of the day.

According to data obtained from CoinMarketCap, ONDO has achieved a trading volume of 335 million dollars in the last 24 hours. The market value of ONDO is at the level of 1.422 billion dollars.

3- Pendle (PENDLE)

The two artificial intelligence projects were listed among the top five altcoins that rose the most during the day. Following ONDO, another altcoin that rose the most during the day was Pendle (PENDLE). The artificial intelligence initiative PENDLE recorded an increase of 10.50% in the last 24 hours.

According to data obtained from CoinMarketCap, PENDLE's trading volume in the last 24 hours was $146 million. PENDLE's market value is at $766 million.

4- ORDI (ORDI)

Bitcoin miners' favorite initiative, BRC-20, saw a rise of 9.66% in the last 24 hours, led by its representative ORDI (ORDI). ORDI, which enables the activation and wider adoption of the Bitcoin network, is currently the fourth highest-gaining altcoin of the day.

According to data obtained from CoinMarketCap, the trading volume of ORDI in the last 24 hours was 235 million dollars. The market value of ORDI is at 869 million dollars level.

5- Fantom (FTM)

Fantom (FTM), one of the most popular and widely preferred layer-1 blockchains that has maintained its popularity over time, has experienced an 8% increase in the last 24 hours. The rise of FTM was influenced by Fantom's new blockchain initiative, Sonic.

According to data obtained from CoinMarketCap, FTM has a trading volume of 484 million dollars in the last 24 hours. The popular blockchain project has a market value of 2.47 billion dollars.

This article does not contain investment advice or recommendations. Every investment and trading activity carries risks, and readers should conduct their own research when making decisions.

Billionaire investor Steven Cohen's hedge fund has invested in the world's largest cryptocurrency.

According to official records, the Point72 fund with a total worth of 34 billion dollars has purchased a share worth 77.5 million dollars from the Fidelity Wise Origin Bitcoin Fund (FBTC) in the first quarter of the year.

Recently, it was learned that other major companies have also invested in Bitcoin. Among them are names such as Elliott Capital and Millennium Management. As of March 31, Millennium has invested approximately 2 billion dollars in spot Bitcoin ETFs.

According to River data, 13 out of the top 25 hedge funds in the US invested in spot Bitcoin ETFs in the first quarter.

Surprisingly, the popular meme coin Dogwifhat (WIF) is experiencing a negative price movement in the midst of a broader cryptocurrency market rally. While Bitcoin (BTC) and altcoins are rising with positive sentiment, Dogwifhat and another popular coin POPCAT were the only two assets in the top 10 by market cap to see red.

WIF coin is experiencing a decline.

Dogwifhat first reached its intraday high of $2.95 on Saturday, May 18, promising hope. However, this optimism was short-lived and the price quickly dropped to $2.81, a decrease of 1.61%. This coincided with a roughly 33% decrease in Dogwifhat's 24-hour trading volume, indicating a potential decline in market interest.

Dogwifhat's witnessed a 5.06% price drop last week, which has raised concerns and reflects the pressure of a sustained decline. The token is currently 41.97% lower than its all-time high of $4.85, reached in March 2024. This significant decrease in both price and trading volume highlights the potential waning interest in Dogwifhat among investors.

What do technical indicators indicate?

Dogwifhat's 24-hour price chart reveals a consolidation period. Price movements are limited within a narrow range, indicating a potential accumulation or distribution phase. The technical analysis tool, Bollinger Bands, shows a balanced sentiment with the upper band at $3,400 and the lower band at $2,471. The price, hovering around $2,9355 on the middle band, further emphasizes this indecisiveness.

{"sl":"Turkish","text":" ","tl":"English"}However, the tightening of the Bollinger Bands also indicates a possible upcoming increase in volatility. A break above the $3,400 resistance level could suggest a bullish trend, while a break below the $2,471 support level could indicate further downside. The Moving Average Convergence Divergence (MACD) indicator presents a mixed picture. The MACD line shows downward momentum, while the histogram reflects small negative values, indicating weak selling pressure. This inconsistency increases the uncertainty surrounding future price movements for Dogwifhat.

Market sentiment: Bitcoin is rising

Today, the best crypto prices have recovered as Bitcoin (BTC) approaches the $67,000 level. Additionally, the Ethereum (ETH) price has also surpassed the $3,100 level. Moreover, other top-level altcoins such as Solana (SOL), XRP, and Cardano (ADA) were reflecting positive sentiment. The biggest crypto winners of the day are:

• Ondo (ONDO): The ONDO cryptocurrency price traded at $1.03, with a 17.06% increase.
• Gnosis (GNO): The price of Gnosis increased by 14.43% to $304.50.
• Pendle (PENDLE): The price of Pendle has increased by 14.20% to $4.96.
• Ordi (ORDI): ORDI price increased by 13.70% to $41.86.

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Bitcoin and altcoins: General market overview (May 18)

• Bitcoin is currently trading at $66,909, up 1.5% from the time of writing. It is trading at 2,155,867 TL against the Turkish lira.
• Ethereum (ETH) is around 3,102 with a 4.7% increase, BNB (BNB) is around 580 with a 1.2% increase, Ripple (XRP) is around 0.523 with a 1.1% increase, Dogecoin (DOGE) is around 0.155 with a 2.3% increase, Toncoin (TON) is around 6.44 with a 3.7% decrease, Solana (SOL) is around $173 with a 3.7% increase.
• In the last 24-hour period, Ondo (ONDO) was the altcoin with the highest increase with a 14.7% rise, while Toncoin (TON) was the altcoin with the highest decrease with a 3.7% drop in price.
• Ondo (ONDO) is trading at $1.02 while Toncoin (TON) is trading at $6.44.
• The Dollar Index (DXY) is trading at 104.5.
• Bitcoin's market value is around $1.31 trillion, while the total value of the cryptocurrency market is at $2.55 trillion.
• The volume of the cryptocurrency market in the last 24 hours is around $77 billion.
• Dolar/TL is at 32.15 level with a decrease of %0.08, while Euro/TL parity is at 34.98 level with a decrease of %0.12.
• More than 37,000 cryptocurrency investors were affected as $102 million was liquidated from the cryptocurrency market in the last 24 hours.
• The short (kısa) positions account for 67.87% of the liquidated positions, with Bitcoin (BTC) being the most liquidated.

This article is from "Reconciling the two opposing paths for Decentralized Stablecoins" & "PureDai: Returning to the ideological roots of Dai"

Author: Rune Christensen

Translated Text: "How to compile: Odaily Planet Daily"

This article combines two articles by Rune Christensen, the founder of MakerDAO, on the future expansion of Dai. Starting from the trilemma of stablecoins, it explains how Dai achieves two-way "guidance" in the Endgame transformation plan, namely the decentralized stablecoin brand NewStable (specific name not yet released) and PureDai. The specific development plans for these two different brands are also disclosed.

The following is the original text related to the development direction of Dai in two articles, compiled by Odaily Planet Daily.

Please note that the translation is in English. > >

When the Dai plan begins to expand, it faces two dilemmas in the development of stablecoins. One is whether it can be rooted in the pure decentralized culture of cryptocurrencies, and the other is how to achieve the original intention of Dai - mass adoption. However, these two directions are fundamentally conflicting, as described in the "Stable Coin Trilemma", it is impossible to simultaneously achieve USD pegging, maintain pure decentralization, and scale massively.

MakerDAO: Since a single stablecoin brand cannot solve the trilemma, let's launch two brands.

MakerDAO believes that there are two main paths to solve the three difficulties of stablecoins: prioritize utility and scale, and pursue a purely decentralized path.

• Prioritize utility and scale: This choice includes USD-pegged and Real-World Assets (RWA) collateral, which requires integration with TradFi and alignment with real-world entities.
• Going the purely decentralized path: This path requires completely abandoning centralized control and relying strictly on decentralized collateral. Although the traditional view suggests that achieving significant growth is more challenging when prioritizing decentralization, the Maker community has always believed in the potential of this approach and there is a certain demand for this type of stablecoin.

The transition to the dual stablecoin solution of Dai should be a gradual and cautious process, which may take several years to complete the transition.

NewStable will inherit most of Dai's use cases and will focus on mass market adoption and compliance with regulatory requirements for real-world asset support, while maintaining a level of decentralization to ensure transparency, resilience, and checks and balances in the stablecoin system.

At the same time, Maker will provide a second purely decentralized stablecoin called PureDai for users who prefer the vision of pure decentralization to choose from.

From the perspective of MakerDAO's decision-making in the face of the triple dilemma of stablecoins, stablecoins need to expand on a large scale and introduce new users, which inevitably requires a connection with the real-world fiat currency. However, at the same time, decentralization will be greatly weakened. Therefore, MakerDAO has found two solutions by adopting two different stablecoin brands, covering all the different needs faced in the triple dilemma of stablecoins.

NewStable complies with regulations

NewStable will be the main successor of Dai, focusing on rise, yield, and security. NewStable will follow the trajectory of Dai, focusing on utility and adoption, and all features will be customized around this goal. NewStable will be a decentralized stablecoin, aiming to achieve security and transparency by making its governance and infrastructure as secure and transparent as possible.

Freeze Function: In order to ensure NewStable can scale globally in a secure manner, it will eventually be upgraded with a freeze function similar to other major RWA-backed stablecoins. The freeze function will not be implemented at the launch of NewStable, but the token will be upgradable to enable its implementation through governance voting at a later stage.

Dai's liquidity and integrated backend: Dai will continue to operate as it currently does, and if there are any questions, Dai users can continue to hold their Dai. NewStable will take over the RWA and TradFi integration of Dai, deepen and improve these integrations, and make them more robust over time through its resilient and decentralized governance process and transparent infrastructure.

Regarding the specific details of NewStable, Odaily Planet Daily has previously reported on it. For more information, please refer to the article "The Road to Self-Rescue of the Long-standing DeFi Project: Analyzing MakerDAO's Endgame Transformation Plan".

PureDai focuses on Decentralization

PureDai aims to achieve an idealized version of Dai that many Maker community OGs and Ethereum cypherpunk idealists have long desired. The changes brought by Endgame and the specific development needs of NewStable mean that this vision can now be realized without compromise.

PureDai's goal is to create a truly decentralized stablecoin that relies entirely on decentralized collateral and extremely decentralized measures. Its main features include: freely floating target price, highly decentralized collateral, maximally decentralized oracle machine, PureDai's tokenomics governance token, permanent issuance to the PureDai treasury, PureDai governance token burning engine and backing, as well as SubDAO linkage.

Free Floating Target Price

PureDai adopts a mechanism of free-floating peg because it cannot rely on RWA to maintain its peg to the US dollar. Negative interest rates may be necessary to ensure price stability. This mechanism is similar to decentralized stablecoins such as RAI and HAI.

Existing Dai users can choose to upgrade their Dai to PureDai if they appreciate its extreme resilience and decentralization achieved through uncompromising design trade-offs. Advanced stablecoins such as LUSD attempt to achieve a rough peg to the US dollar without the need for a freely floating target price. PureDai may draw inspiration from these innovations, but a freely floating peg is always a possibility and should be the default expectation for users in the long term.

Highly Decentralized Collateral

PureDai is currently planned to only use ETH and stETH as collateral in the early stage. ETH is considered the ultimate decentralized collateral, while stETH improves economic efficiency through Lido's decentralized infrastructure. PureDai's minimal governance will be able to take stETH offline when necessary and may list other liquid collateral ETH tokens that meet PureDai's high standards.

PureDai will launch a DeFi lending platform to maximize the generated amount of PureDai.

Maximized Decentralization Oracle Machine

PureDai needs to maintain liquidity in three AMM pools: ETH/PureDai, stETH/PureDai, and NewStable/PureDai. A portion of the surplus revenue from the PureDai protocol will be introduced into these three AMM pools to ensure their growth over time. The ETH and stETH AMMs are used to generate time-weighted oracle prices for collateral prices in the system's liquidation calculations. The NewStable/PureDai AMM is used to determine the target interest rate.

Governance Token Economics of PureDai

PureDai will have its own governance token, with an initial supply of 2 billion PureDai governance tokens. The initial supply will be allocated to NewStable stakers on the Ethereum mainnet over a period of 5 years. PureDai will not be a SubDAO, as its own governance infrastructure will be completely independent of MakerDAO.

PureDai's initial distribution of governance tokens helps to ensure that Maker's incentive mechanism remains consistent when building and releasing PureDai, and ensures that ownership of PureDai governance tokens is widely distributed without any entry barriers.

Permanently distributed to the PureDai treasury.

To borrowers who use the PureDai vault to expand the supply of PureDai, permanent issuance is offered, which may support higher PureDai demand and growth without the need for negative target interest rates. This mechanism means that all PureDai vaults will have two options: one is for users to only pay the normal stability fee, and the other is to pay a higher stability fee but in return receive PureDai governance tokens.

PureDai governance token burning engine and backstop

PureDai will use surpluses to accumulate, market make and burn PureDai governance tokens. If the bad debt generated from failed liquidation auctions exceeds the accumulated amount of PureDai in the surplus buffer of PureDai, new PureDai governance tokens will be issued to attempt to recapitalize the system.

Interconnected with SubDAO

SubDAO ecosystem will be very suitable for the users of PureDai and build applications on top of it to ensure it has enough legitimate use cases and take advantage of the arbitrage opportunities that arise in such a system. Spark may play an important role in the growth and efficiency of PureDai.

PureDai may be launched after the first three SubDAOs are launched, but the exact order and timing may vary. By introducing PureDai, the Maker community will be able to provide a truly decentralized, resilient, and simple stablecoin product.

Summary

After the launch of PureDai, Dai users will have two complementary options: upgrading Dai to NewStable, leveraging its USD peg and yield features; or upgrading Dai to PureDai, enjoying the advantages of its fully decentralized collateral. Eventually, Dai is expected to be completely deprecated, and all Dai users and integrations will migrate to NewStable or PureDai.

MakerDAO's launch of the dual stablecoin project can not only achieve current growth and revenue goals, but also ensure the continuation and strengthening of the core value of decentralization in future stablecoin solutions. This process will be a journey full of challenges but also opportunities.