Crypto Academy Week 7 Homework Post for @yohan2on Explaining Stablecoin Digix


The Homework!

Homework task: Write about any one of the following stable coins;

  • USD Coin (USDC)
  • TrueUSD (TUSD)
  • Paxos Standard (PAX)
  • Digix (DGX)

image.png
Digix DGX - Image. From CryptoBriefing

Digix (DGX)

Digix is a gold-backed cryptocurrency created by the DigixDAO platform. They store and secure physical gold bars, and issues an ETH-based ERC-20 cryptocurrency token in its place.

image.png
Screenshot Image. From Digix

They tokenize the gold in hopes to provide more stability and value storage in the cryptocurrency space. DGX is the second DigixDAO token, its value is tied to one gram of gold. There are also talks that more tokens are in the works to represent other precious metals, such as silver and platinum. It was first created in Singapore in 2014 by the founding team of Anthony Eugenio, Kai Ching, and Shaun Djie, who later on brought former Fujitsu Asia CEO Teo Hye Chng as their chairman when 4000 DGD were stolen after the July 2017 hack on the DigixDAO platform.

There may be a difference in the price of DGX versus a gram of gold, which is usually attributed to the fees (the demurrage and transaction fees) or the lag in actual matching compared to a stablecoin's match to the US dollar value. There is a 0.60% of demurrage fee and 0.13% of transaction fees, while storage fees are waived for the first year of operation. Its supply, however, is directly proportional to the number of gold in the physical vault, like the first Digix vault which reportedly held 30 tons of gold.

image.png
DigixDAO graphics image. From TimeBit News

DigixDAO

DigixDAO, short for Digix Decentralized Autonomous Organization, creates cryptocurrency that is backed by bars of gold. The first-ever crowd sale, held on March 30, 2016, on the Ethereum blockchain are the participants who purchased DGD tokens, which are a native Ethereum based ERC-20 token that governs the Digix network. On top of it, they also receive a portion of the demurrage fee and the transaction fees just for trading Digix Gold Token (DGX).

As of December 27, 2018, there were 2,000,000 DGD and 83,059 DGX in circulation. Their value, however, depends on the stability of the DigixDAO.

image.png
Graphics Image. From Digix

Trading DGX tokens

The Digix website offers a way to buy DGX directly from it. You can do that by simply going to their main page, https://digix.global:

image.png
Screenshot Image. From Digix

You just look for the BUY DGX WITH CRYPTO button anywhere on their site (there are different places to start but, on the main page is at the very start of the page).

You just have to follow a few steps to register (they have a detailed guide here: How to register for Digix, once completed you will be able to purchase up to 10 DGX tokens.

If ever you want to, 100 DGX tokens are the minimum requirement for you to cash it out, as this will be converted to a 100g gold bar, which you can opt to either claim in person or be shipped to you.

image.png
Market listing screenshot. From coinmarketcap

If you do not want to buy or trade directly from DigixDAO, a variety of cryptocurrency exchange markets like Binance Coineal, HitBTC, Liqui, Huobi, and Gate.io accept DGD tokens. On a daily basis, over $500,000 worth of it is traded to pairs, including BTC, ETH, and USDT.

Since it is an ERC-20 token, it can be stored in any compatible wallet like the Trezor and MyEtherWallet.


Thanks a lot for reading this new article I posted about a stablecoin called Digix/DGX. This article is made possible by the homework task given by @yohan2on empowered by the assignment of @steemitblog. Till my next information article. Have an awesome day readers!

Images used are from Chrome Webstore, metamask.io website, sushiswap website, and my own screenshots of the MetaMask wallet. Thank you so much for this task @yohan2on, @steemitblog, @steemcurator01, @steemcurator02!


Comments 4


Hi @grazz

Thanks for attending the 7th -Crypto course on stable coins and for your effort in doing the given homework task.

Feedback

This is very good work. Well done with your research on DGX

Homework task
10

29.03.2021 02:12
0

Thanks a lot, professor, by the way, I still don't have a vote. Kindly check. Have a great day!

02.04.2021 20:59
0

Thanks a lot for the opportunities @steemcurator02, by the way, there's still no vote on my post. It's near payout. :/

03.04.2021 01:00
0

Thanks a lot @yohan2on and @steemcurator02!

03.04.2021 05:19
0