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Ethereum L2

xDai and STAKE simply explained

xDai coin


It is a stablecoin pegged with 1:1 ratio to Dai for stable transactions and low fees. It can back on-chain tokens (for use in Event Currencies like this one and Community Currencies).

STAKE token is used for


  • Validators running nodes
  • Delegators placing stake on those nodes.
  • Rewards to validators.

Additional sidechains can use STAKE to secure their chains, making this the first multi-chain enabled staking token.

What is xDai Chain


xDai is an Ethereum-based sidechain with a stablecoin native currency and beginner friendly tooling.

It uses two tokens

  • The native stablecoin xDAI
  • The staking token STAKE.

How xDAI STAKE works


The chain uses a version of delegated Proof of Stake (DPOS) consensus – called POSDAO. xDai is the native currency like ETH on Ethereum.

Transactions

  • Fast
  • Cheap
  • Paid with a single coin.

Bridge

The TokenBridge is used to move and convert assets between chains.

  • The bridge uses smart contracts on both chains to process transfers, and a group of validators confirm bridge transactions.
  • When a bridge transfer is initiated, the specified amount of Dai is locked in a smart contract on the Ethereum mainnet, and the same amount of xDai is minted on the stable chain and sent to the user’s wallet.
  • When xDai is transferred back, it is burned, and the corresponding amount of Dai is unlocked in the contract and released to the user’s wallet on the Ethereum mainnet.

The amount created can never exceed the amount of Dai locked in the bridge contract.

STAKE token issuance


Current supply: 8,545,470 STAKE

Docs


Docs

Paper

Competition


STAKE token price


Categories
Ethereum L2

LRC token summary (Loopring)

What is Loopring?

Loopring is an open protocol for decentralized exchanges. Version 3.0 uses layer-2 scaling technology on Ethereum.

LRC token is used for

  • Exchange staking
  • Lower fees on the exchange

How it works

Exchange using Loopring protocol

  • Stakes LRC.
  • Withdrawing the stake is only allowed when the exchange is completely shut down. Automatically returning all its users’ funds.
  • The stake ensures that the exchange behaves correctly.

Protocol Fee Staking

  • The exchange owner can stake LRC to lower the protocol fee by 50%.
  • Anyone can add to, or withdraw from the stake of a particular exchange by calling the commands.

More in v3.0 protocol design.

Token issuance

Total supply: 1,374,513,896

Docs

Similar projects

Loopring price

Categories
Ethereum L2

What the OMG token is used for

What is OMG Network (ex OmiseGo)?


OMG Network is a Layer-2 scaling solution for Ethereum.

OMG token is used for


  • Lock and Validate transactions on the OMG chain.

Watchers

  • Lock their tokens in a smart contract and earn fees for validating transactions on the OMG network.
  • Improper activity results in the tokens being burned.
  • Validators also run Ethereum to validate in parallel.

More on p.5 in the Whitepaper.

How OMG Network / OmiseGo works


OMG Network is a Proof of Stake sidechain using the Plasma framework.

The OMG Network consists of

  • Smart Contracts
  • Child Chain
  • The Watcher

Plasma Smart Contract

Exists on the Ethereum blockchain.

It cointains

  • Deposits
  • Exits
  • Receipts of blocks from the child chain.

Child Chain

  • Maintains network state
  • Receives transactions and submits them to the Plasma smart contract

Watcher

OMG network can be used for scaling

  • Decentralized exchange.
  • Payments.
  • Inter blockchain communication.

OmiseGo Token issuance


Total supply: 140,245,398 OMG

Token sale in 2017

Amount: USD $25 million in ETH

  • Public 65.1%
  • Airdrop 5%
  • Reserve 20%
  • Team 9.9%

Team tokens locked for 1 year (2017).

Docs


Docs

Support docs

Paper

More on Plasma

What’s the story?


  • Layer-2 and scaling is in demand

Competition


OmiseGo price


Categories
Ethereum L2

What is Matic token used for?

What is Matic Network?


Matic provides scalable, secure and instant transactions for public blockchains using Plasma.

How Matic Network works


1. User deposits crypto assets in Matic contract on the mainchain (contract deployed on Ethereum chain).
2. Corresponding tokens get reflected on the Matic chain.
3. The user can now transfer tokens almost instantly.
4. A user can withdraw remaining tokens from the main chain by establishing proof of remaining tokens on Root contract (contract deployed on Ethereum chain).

More here.

What is Matic token used for?


  • Pay rewards to block producers and proof publishers.

The Matic token


Matic staking


– 12% of its total supply of 10 billion tokens allocated to fund the staking rewards. Transaction fees will fund the network long term.

Validator Rewards = Staking Rewards + Transaction Fees

Staking rewards are elastically calculated

  • With 5 % of supply staked: 120 % APY
  • With 40 % of supply staked: 15 % APY

Slashing

  • 2–5% slashing if a validator double signs a checkpoint.

More about staking and slashing here.

Docs


Docs

Whitepaper

Token issuance


Total supply: 10 000 000 000

12% staking rewards per year.

Matic price