A Look at Dai on Different Chains

A Look at Dai on Different Chains

The community is discussing what opportunities might be available to Dai on networks outside of Ethereum but with so many different networks and dApps being launched, it can be difficult to get a sense of the landscape.

@Growth has published stats on Dai usage in different networks in their weekly updates (here, here, and here) and @ProtocolEngineering published this thread outlining A Multichain Strategy and Roadmap for Maker.

What happens to Dai once it hits L2s? Hopefully, this article provides some insight.

Current Usage

As of 7/7/2021

Solution Dai Market Cap Dai Holders
Avalanche $10,000 ?
Binance Smart Chain $262,036,026.91 29,764
Fantom $44,366,844.30 2,917
Klaytn $62,610,003.71 5,295
Polygon $418,404,958.10 23,141
xDai $13,847,885 1,532

Avalanche

There’s around 10 million DAI bridged to the Avalanche as aDAI (AVADAI).

DAI can be bridged to the network using the Avalanche-Ethereum Bridge.

What is Avalanche?

Its network is designed to house multiple chains, each supporting its own virtual machine, like EVM or WASM.

Their team describes the model as a “platform of platforms” that provides a scalability outlet for large blockchain ecosystems.

Its consensus model is called Snowball, a PoS algorithm designed by Ava Labs.

What can I do with DAI on the network?

DeFi

Fun and Games

  • Avaxtars is a browser-based NFT collection game that features a native token AVAX. The token currently can’t be bought on exchanges, so DAI must be swapped using the Pangolin DEX.

Gambling

  • AVAX Duels lets you duel against live opponents for the chance to loot their AVAX tokens. AVAX is obtained by swapping from DAI using a DEX.

Binance Smart Chain (BSC)

BSC currently holds around 262 million DAI.

To bridge from the xDAI network to BSC, use the Omni Bridge.

Transactions on the BSC network are paid in BNB, so you may need to purchase or swap some currency to BNB to cover the fees when transferring tokens off the network.

What is Binance?

BSC likely doesn’t need much of an introduction. It hosts more daily transactions than Ethereum or any other blockchain ecosystem.

On June 22:

  • Binance Network: 4,464,987 total transactions
  • Ethereum Network: 1,297,644 total transactions

What can I do with my BEP-20 DAI?

DeFi

  • PancakeSwap is a UniSwap clone and the primary exchange used on BSC.
  • Pancake Bunny is a yield farming protocol that nets the Bunny Token that supports PancakeSwap. DAI can be used as a staking pair.
  • Autofarm is a DeFi suite and yield farmer that allows users to track all their BSC DeFi investments in one central hub.
  • Blizzard.Money V2 is a yield farming protocol with some of the largest liquidity pools on the chain. DAI can be staked in the system.
  • ForTube is a DeFi lending protocol operating on the ETH and BSC networks.

Fun and Games

  • CryptoBlades is an RPG where users build characters, craft weapons and armor, and battle both players and monsters. It rewards its users in the SKILL token which can be exchanged via their platform for DAI.

Gambling

  • PokerDefi is a yield farming dApp where users can stake DAI-BNB and DAI-USDC pairs to earn the PKR token. It gamifies the process by selecting random pairs twice a day and multiplying potential yields by up to 10 times.
  • Staking Saloon is a mini-game based around NFT-staking from the greater SeaScape network. Users can trade the tokens through SeaScape directly into DAI.

Fantom

There are currently 44.43 million DAI on the Fantom network, and the ERC-20 DAI contract can be viewed here.

You can bridge to Fantom from L-1 Ethereum by using Multichain.xyz.

What is Fantom?

Fantom is an EVM-compliant distributed ledger technology stack that utilizes a DAG (Directed Acyclic Graph) based platform. The Fantom OPERA network is designed to power smart cities, a topic discussed by @derek in A Multichain Strategy and Roadmap for Maker.

In essence, Fantom allows for increased throughput and interoperability within your “smart city walls”.The network aims to improve myriad real-world sectors, from public utilities and healthcare to education, traffic management, and sustainability systems.

The network’s native token is Fantom (FTM).

What can you do with DAI on Fantom OPERA?

The network is still coming into its own and offers many of the typical top names in DeFI, but a few native dApps have begun to pick up steam.

DeFi

  • SpookySwap is a DEX and AMM governed by the BOO token. It features DAI as an available swap option and as a DAI-FTM liquidity pair for yield farming.
  • ShroomSwap is an AMM and yield farming protocol built for ERC-20 tokens that lists MakerDAO as an integral backer of its infrastructure.

Klaytn

Around 62.61 million DAI have been bridged to the network as KDAI.

Users can bridge from L-1 Ethereum using the Orbit Bridge.

What is Klaytn?

Klaytn is an EVM compliant “hybrid” blockchain that combines aspects of centralized and decentralized blockchains. In their words, the network is an “enterprise-grade, service-centric platform focused on providing a user-friendly blockchain experience.”

It’s designed for the easy integration of blockchain technology into current business workflows and allows its users to create blockchain applications (bApps) catered to their specific business needs.

They make the distinction between dApp and bApp as its users aren’t obligated to run decentralized services on the network. This allows for Business Enterprises to create private, centralized bApps while still participating in the public Mainnet.

Klaytn was founded in South Korea by the team behind the social media platform Kakao and is predominantly populated with region-specific apps and services.

It’s run by a Governance Council headed by Kakao, LG Electronics, PUBG, Union Bank, and Binance, among others.

How Klaytn Works

The network consists of three modules:

The Core Cell is publicly available and user-run. Two nodes-types are hosted in the Core: a Consensus Node (CN) and two Proxy nodes (PN).

The Klaytn team maintains central control of the CN bootnodes used to onboard new users by registering them as a PN and directing them to the proper End-point Node (EN).

Outside of Bootnodes, users are free to run public PNs and ENs to help maintain the network. Participating users are rewarded via the KLAY token.

What can you do with DAI on Klaytn?

Because the service is designed for commercial use, information on a large portion of its bApps is not publicly available. That said, the network is open to traditional dApps and web services offered on other block ecosystems.

Polygon (formerly MATIC)

As of July 7, the Polygon network holds around 418.4 million DAI, the majority of which is held in the Aave protocol.

What is Polygon?

The official bridge can be accessed via the MATIC bridge.

Polygon aims to help Ethereum “keep up with the competition” as it transitions to a proof-of-stake model. So how does the Polygon network perform?

  • Most transactions sit around between .0001 and .0003 MATIC, or well under one cent.
  • It already performs at a throughput of 7000 transactions per second (TPS)

So, what can you do with DAI on Polygon?

Most of Polygon’s Dapps are the same top Dapps you see on Ethereum, like 1inch and Aave, but Polygon’s working on building its own ecosystem.

Here are a few currently utilizing DAI.

DeFi

  • QuickSwap is similar to Uniswap.
  • Polycat Finance is a traditional yield farming protocol that employs a “burn mechanism”, using 100% of the network’s fees to buy its native token FISH, and sending it to the burn wallet. Polycat can be found at:
  • Slingshot DEX is a trading protocol that operates on the Polygon network. DAI is one of their featured stablecoins. They offer real-time market analysis, so every change is shown live.

Fun and Games

  • Aavegotchi is a call-back to Tamagotchi, where players collect and raise digital pets. The platform allows for staking and yield farming, making them the first playable NFTs to be backed by digital value.
  • The Museum of Crypto Art partners with artists who “tell the story of crypto culture.”

Gambling

  • SportX is a decentralized peer-to-peer sports betting market.
  • Pirate Dice is a yield farm with a unique twist. Users can also dice gamble and collect NFTs in a treasure-hunt-styled game.
  • Decentral Games is a 3D casino inhabited by user avatars and governed by a DAO. Its treasury is backed by DAI and Decentraland’s MANA token. Dai and USDC are its primary backers.

xDAI

Around 13.85 million DAI have been bridged to the xDAI network.

What is xDAI?

xDai bridges DAI over to quick and low-cost sidechains, making transfers and payments cheaper.

So let’s take our DAI and see what it can do on the xDAI network. Like Polygon, its primary function is to remedy Ethereum’s high and ever-changing gas fees.

  • A standard xDAI transaction costs $0.000021 USD.
  • Transactions take five seconds.

All transaction fees on the network are paid in xDAI. Bridges include:

  • POA Network is behind the xDai chain and supports the network through R&D.
  • Connext is used to trade Dai for xDai and vice versa across the xDai, Polygon, and BSC networks.
  • Omni Bridge can also be used to bridge xDAI back to its native network for easy conversions back to ERC-20 DAI.

xDAI can also be used to directly swap to the Binance chain by using component.finance to swap from xDAI to wxDAI, or wrapped xDAI.

What can you do with DAI on xDAI’s network?

DeFi

  • HoneySwap is a Uniswap fork operating as the leading xDAI DEX.
  • Component.finance allows you to connect a software wallet to convert stablecoins.
  • Swarm provides decentralized storage and communications and aims to become the de-facto operating system of the decentralized web. Its BZZ token is the most bridged token on the xDAI chain with over 37,000 holders.

Fun and Games

  • HashAvatars - Claim randomly generated Avatars for 1 xDAI. You choose the amount minted and sell or keep them as NFTs.
  • TokenUp - Buy and sell NFTs using xDAI.
  • Foundation - Bid on digital art from emerging artists using xDAI.
  • NiftyChess preserves online chess boards as NFTs.

Gambling

  • GUStakes lets you stake xDAI on God’s Unchained matchups, a decentralized TCG created by a former director of Magic The Gathering Arena.

Faucets

xDai has another interesting feature. You can visit the BlockScout faucet to claim the xDAI required for a transaction.

From xDAI you can swap directly to BEP-20 DAI, Binance’s version of the ERC-20 standard using component.finance.

The fee for this is paid in xDAI. After swapping to BEP-20 DAI, you can bridge over to the Binance chain.

16 Likes

This is great!! :star_struck:
At the moment in the PE team we’re wrapping up the risk framework and this information is exactly what we want to slot in to build up the awareness of different chains! Thank you

6 Likes

Apologies, fat-fingered the reply button… :upside_down_face:

Happy to help! Let me know if you need anymore digging done!!

Don’t forget that the production release of the Swarm decentralized storage network runs on xDAI. We finally have an ethereum-native alternative to IPFS. xDAI is used for bandwidth micropayments and postage stamps for long-term storage.

1 Like

Very nice breakdown. What about NEAR? No love for NEAR? They showed a lot of love for DAI by building that Rainbow bridge. Hopefully folks have not written them off…

Out of All the chains you named above–which one offers the highest DAI Yield Farming returns? Thanks in advanced.

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Thanks for reading! I hoped to include chains like NEAR and Polkadot, but their block explorers offer very little on token distribution. If you can point me to the contract hash, I’ll do some digging.

As for yields, a lot of it comes down to personal risk tolerance, but here’s a quick run-through.

Polygon

  • BoneSwap offers around 87.45% APY for DAI farming and 94% APY on DAI-USDC pairs - paid out in BONE.
  • Polycat offers 49.99% APY on DAI-FISH LPs and 34.28% (.08% daily) on DAI-ETH LPs.

BSC

  • PantherSwap offers 17.07% APY on DAI-BUSD pairs
  • Autofarm has BUSD-DAI, and USDT-DAI pairs at 11.26% and 11.66%, respectively.

Fantom

  • SpookySwap has a FTM-DAI pair set to 69.3% APY, paid out in BOO.

So, your mileage may vary, but Polygon seemingly offers the highest yields of the listed chains - at least for more established Dapps.

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Thanks for the heads up! I’ll do some research on them.

Loopring is an interesting project that uses ZKRollups and different asets can be traded within its exchange including DAI. (I don’t know if it enters as a chain as such).

xDAI is one of my favorite networks because it is fast and cheap. A large community of Venezuelans use it for exchanges.

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Most of Dai on Klaytn (KDAI) DeFi is used on Klayswap https://klayswap.com/

KDAI-USDT gives 18% APY and KLAY-KDAI gives 66.5% APY so it’s not bad.

2 Likes

and why not add xDAI?

From what I can gather, xDAI is still primarily being used to cheaply bridge between chains.

That said:

  1. Honeyswap offers a 20x multiplier of xComb-xDAI pairs, and 5x multipliers on xDAI-HNY and xDAI-AGVE pairs.

  2. Unicrypt has a UNCX-wxDAI staking pair set to 93.6% APY under a 1-year contract.

  3. Xion Finance has an xDAI-XGT pair offering 150% APY.

But please keep in mind TVL of these pools is rather low when compared to major chains.

Just took a look through Swarm- I’ll add Loopring to the list.

1 Like

Thanks for This @Content-Production

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@alec excellent overview. I was curious but has there been any discussion or thought given to deployment on Solana? You hear about progress they are making quite a bit and some former Foundation devs (like Wil Barnes with the Jet Protocol) are building there. I’m non-technical but perhaps the reasons why it hasn’t been top of mind are the different programming language required (rust v solidity) and it would have to be a new deployment of the Maker Protocol rather than a bridge.

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Well, you will see the news soon :wink:

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I love this, thank you.

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woaaaaa, at least one clue hehehehehehe don’t leave us in doubt hehehehehe

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“It’s not done till it’s done” said by @g_dip I think

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Looks like the UST (Terra Luna) community and Do Kwon are taking their stablecoin to Solana via that Curve type of protocol called Mercurial:

1 Like