World Prices
Back to Main Menu
Tools
Back to Main Menu
Coins

Gasless Dai Transactions, 8.75% DSR and another IPO to launch on Ethereum

Ethereum Price: $189.35
Ethereum Price (BTC): 0.020287BTC
ETH Locked in DeFi: 3.14M (2.87% of circulating supply)
Market Cap: $20.75B
ETH Network Dominance*: 68.24%
7 Day Candle**: $169.93 / $196.00 / $168.39 / $189.35

Ethereum has had a stellar week. The price of ETH in both USD and BTC terms increased significantly with the ETH/BTC market climbing back above 0.02. So far this year, ETH/USD has increased by nearly 50% and the total value locked in Decentralized Finance crossed $900 million for the first time.

This price action has come with significant volatility, likely related to the upcoming ETH 2.0 network change and Bitcoin’s block reward halving. Mainstream media outlets are once again picking up on the rebound of Bitcoin and, once again, they have failed to even notice – let alone analyse – the dramatic progress of Ethereum.

IPOs are coming

In 2017, Ethereum was labelled the ICO blockchain; home of ultra-volatile, potentially fraudulent and almost-exclusively unregulated token sales. ICOs were quickly jumped on by financial regulators around the world and as a result, the size and scope of these fundraising efforts dwindled.

Now, and as part of a larger trend, a Swiss company has been green-lit to launch an ~$11 million IPO on Ethereum. The firm cited the lack of “banks, financial intermediaries, broker-dealers, central depository systems, notaries, etc.” as the primary reason for using Ethereum.

We can expect fundraising on Ethereum to increasingly come in the form of regulated IPOs, a major boon for the blockchain’s legitimacy in this space.

Dai Savings Rate to move to 8.75%

The latest poll from Maker has hinted at a possible increase in the Dai Savings Rate (DSR) from 7.75% to 8.75% with 60% voting in favor of the change.

The increase comes at a time when many expect the price of ETH to continue its rally upwards. This optimistic outlook allows MakerDAO (the governing structure behind Maker and the DSR) to increase the interest rate on borrowing in the system – something which is largely used to leverage long positions in ETH. Interest earned by the system is then used to fund the DSR.

This hint of an increased rate for borrowing may be responsible for the roughly 50,000 ETH that exited MakerDAO in the last few days.

As discussed in previous articles, should ETH continue to exit the system, it may indicate a waning confidence in the future price of the asset. Whether this trend continues is yet to be seen.

Colorado state officials presenting at ETHDenver

ETHDenver, one of the largest Ethereum conferences and hackathons, will see a number of Colarado state officials, including the state governor, take to the stage to speak about building a bridge between web3 and government.

The significance of this is two-fold. First, it is a major validation of the potential that Ethereum has for solving real-world problems at a state level. Second, with every government official that better understands this potential, the threat of heavy-handed state or federal regulation reduces.

Follow ETHDenver on Twitter for live streams from the conference.

Aztec Protocol launches privacy on Ethereum

The Consensys-backed Aztec Protocol is one of the most under-reported developments on Ethereum and quite possibly because it’s hard to find any digestible documentation. The Aztec specification suggests that by using any one of the protocol’s “family of zero-knowledge proofs“, it is possible to make the inputs and outputs of an asset on Ethereum completely private.

Currently, the protocol is limited to zero-knowledge transactions of Dai (zkDai), although other assets including zkETH are planned for the near future. The website also suggests the implementation of zkBTC, although the team have yet to comment on what this involves.

Going further, Aztec hopes to make it possible to apply privacy to all manner of things, including (taking identity as an example) the ability to prove one’s age (i.e. over 18) without revealing a date of birth.

While the protocol has launched on main net, it would appear that it is nearly exclusively being used on Ethereum’s Rinkeby test net. We can expect more from Aztec once audits are published and developers become familiar with the protocol’s API.

Gas-free Dai transactions

The MVP, stablecoin.services, launched last week to provide “gas-free” transactions for the Dai (and Chai) stablecoin. Instead of paying for gas (transaction fee) with ETH, a Dai fee is taken to cover the costs of running the transaction through a relayer, with the relayer paying the necessary ETH gas fee on behalf of the sender.

One of the most awkward experiences for new Ethereum users is the need for ETH when conducting transactions in other Ethereum-based currencies. While ETH has not been removed from the process, it has been abstracted away for the user to make for a much smoother experience.

We hope that stablecoin.services serves as an example of the power and extensibility of the permit construction, and encourage future token designers to adopt a similar pattern.

Martin Lundfall, stablecoin.services

The fee for a transaction on stablecoin.services is calculated as 1.1 * gas_per_operation * fast_gas_price * eth_price_in_dai. Where the service takes a 10% fee. This places an “ETHless” transaction at roughly 25 cents.

Please note the smart contract powering the service has not been audited.

– Nick, Owner EthereumPrice.org

* calculated as: (ETH Market Cap / Ethereum Network Market Cap)
** open / high / low / close