Decentralized Trading Platform dYdX Responds to Controversy Surrounding Bank of Silicon Valley
On March 11, dYdX, a decentralized derivatives trading platform, posted a message on social media saying that in view of the recent events surrounding the Bank
On March 11, dYdX, a decentralized derivatives trading platform, posted a message on social media saying that in view of the recent events surrounding the Bank of Silicon Valley, dYdX decided to continue to operate at the actual dollar price of USDC, without assuming that USDC=USD.
DYdX: All positions, collateral and funds paid by the platform in USDC will be denominated in USD
Analysis based on this information:
Recently, dYdX, a decentralized trading platform for derivatives posted a message on social media announcing their decision to continue operating at the actual dollar price of USDC. The announcement was made in response to the controversy surrounding the Bank of Silicon Valley. The platform has decided not to assume that USDC is equal to USD, given the possibility of complications surrounding its connections to the Bank of Silicon Valley.
The Bank of Silicon Valley has been in the news recently for its involvement in fraudulent activities. There have been charges against its executives for conspiring to deceive in order to access a $10 million bailout. The Bank of Silicon Valley had recently given USDC a positive rating, affirming its association with traditional dollars in digital currency conversion.
However, dYdX has decided to remain cautious and not assume the rating given by the bank. USDC is a stablecoin, which means it is tied to the value of traditional currency. It is used for trading and can be used as a form of payment. The USDC value is stable because it is backed by actual dollars. The value of USDC is kept at $1 USD, through promise of redemption by the issuer.
dYdX, an alternative to centralized trading, has likely made this decision to keep itself from any involvement or complications with fraudulent activity. Decentralized trading is the idea of trading without intermediaries like brokers or banks. This model has gained traction in the cryptocurrency space because of its ability to allow individuals to trade directly with one another. dYdX takes this a step further by allowing users to trade derivatives and margin trades without the need for intermediaries.
In conclusion, dYdX’s decision to continue operating at the actual dollar price of USDC, without assuming that USDC equals USD is a wise, cautionary move. Protecting itself from the Bank of Silicon Valley’s fraudulent activities is a necessary measure. Furthermore, it is commendable to see a decentralized trading platform taking a proactive approach in protecting its users in this way.
Overall, the message from dYdX conveys the importance of staying vigilant and not assuming that everything is safe and trustworthy, especially in the cryptocurrency space. The three keywords that best describe the message are dYdX, decentralized trading, and Bank of Silicon Valley.
This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/metaverse/8274.html
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Related recommendations
-
Karrier One Ends First Round of Financing
On April 5th, it was announced that the 5G blockchain network Karrier One will end its first round of financing today, with unknown amounts and participants. Karrier One is a decen
-
What is Coin An and How to Use It
What is money security and how to use money security is a Cryptocurrency trading platform. According to its official website, Coin An is a platform specifically designed to provide a trading platform for digital assets, allowing users to freely buy, sell, and pay services in various decentralized trading venues. It is reported that Coin Security is a start-up company headquartered in the UK, with a wholly-owned subsidiary – BinanceLabs Coin Security is mainly responsible for establishing partnerships with global exchanges, promoting technological development, and improving efficiency. Through the technical support of Coin Security, it can help enterprises solve the pain points of blockchain applications: reducing costs; Improve the speed and security of transactions; Improve customer experience and increase transparency; Enable more people to understand blockchain technology and its benefits.
-
Wallbit Halts Cryptocurrency Services in Venezuela
On February 28, it was reported that Wallbit, a bank that supports cryptocurrency services, will stop providing services to Venezuelan users in Venezuela due t…
-
7:00-12:00: A Look into Telegram, Zhao Changpeng, Russia, and Alameda
7:00-12:00 Key words: Telegram, Zhao Changpeng, Russia, Alameda
Summary of important developments at noon on March 30th
IntroductionAs the world continues to be driven by technolog -
What does Ethereum node mean (Ethereum node is at a new low)
Ethereum node refers to what is used. Ethereum node refers to what is used. It is generally maintained through smart contract. In traditional systems, users can control their digital assets (such as Bitcoin) through the client, or use third-party software to manage digital currencies. The smart contract of blockchain can be run and operated by developers themselves Generally speaking, when a user has an account, they need to first transfer the funds to the corresponding address, and then put these coins into the smart contract for storage through wallet and browser plugins. In the DeFi project, the same applies. If a project wants to become a node of the DeFi project, it must recharge some tokens to this account as initial collateral At present, DApps on Ethereum are mainly divided into two categories: one is EOS based DAPP. Since EOS is a public chain project, it does not have anonymity like Bitcoin and does not have transaction fees, but can…
-
Bitlinex Supports Alliance Block Foundation for Airdropping Nexera Tokens
On February 24, Bitlinex will support the Alliance Block Foundation to airdrop the Alliance Block Nexera token (NXRA) to some ALBT holders. At the time of \”sna…
-
#Table of Contents
On March 21, the MakerDAO community launched a public opinion poll on the standardization of PSM parameters. Option 1 of the proposal is to diversify the stable currency reserves o
-
EOS Founder Brendan Blumer suffers major floating loss
According to reports, Brendan Blumer, founder of EOS and Block. One, had previously spent more than $90 million to buy about 9.27% of the shares of Silvergate….
-
Introduction
According to reports, on April 11th, Tether announced that Euro Tether (EUR T) and Tether Gold (XAUT) had been launched on the trading platform StealthEX, allowing users to purchas
-
Blockchain Sector Suffers as A-shares, Shenzhen Composite Index and Shenzhen Blockchain 50 Index Record Low Closes
According to the news, the A-share closed at 3285.1 points, down 1.11%, the Shenzhen Composite Index at 11608.58 points, down 1.98%, and the Shenzhen Blockchai…