Investing in the Samecoin ecosystem, what are we betting on?

This article is sourced from AKA Capital.

The first quarter of 2021 was a period of explosive growth for crypto assets. After several rounds of adjustments, crypto assets have returned to rationality. However, the daily trading volume still reaches an astonishing one billion dollars or more, achieving a relatively stable state. Transparency is recognized as one of the important cornerstones for the development of any trading platform.

The higher the transparency of a trading market, the higher its operational efficiency and fairness, which often better protects the interests of investors. Providing verifiable and transparent proof of reserves is a very important consideration for investors to assess whether a cryptocurrency is safe. Based on these considerations, we decided to invest in Samecoin.

Recognizing the transparency brought by DeFi, AKA Capital Research Institute will explore the application and challenges of proof of reserves in the crypto market, as well as how the Samecoin protocol project provides reliable proof of reserves for its stablecoin series (SameUSD and SameEUR) through feasible methods. From the perspective of investment institutions, why Samecoin is worth investing in and how Samecoin is changing the overall payment landscape by simplifying crypto payments. A verifiable 100% reserve-backed stablecoin system Blockchain projects provide token incentives for early participants, but they may arbitrarily dispose of participants' funds with unclear purposes. Throughout the history of DeFi development, there have been multiple cases of project assets being lost, embezzlement, and misappropriation of funds. Transparency, security, and stability remain key factors that cannot be ignored in DeFi projects.

How can user assets be securely protected? And how can stablecoin holders utilize their idle assets to earn attractive returns? The emergence of Samecoin addresses this series of issues.

The Samecoin protocol is a dual-chain parallel crypto stablecoin asset project, applicable to Ethereum and Binance Smart Chain. The ecosystem is supported by Samecoin ecosystem tokens and stablecoins such as SameUSD and SameEUR. These digital currencies closely combine the advantages of cryptocurrencies and fiat electronic payments, essentially aimed at promoting more reliable payment methods, using relatively stable coins to minimize price fluctuations.

To create a favorable trading environment for participants in the digital asset ecosystem, the Samecoin team, dedicated to verifying proof of reserves, has established standard methods for determining digital asset proof of reserves within its ecosystem.

Since SameUSD is generated on a public smart contract by collateralizing another stablecoin, anyone can query the relevant information on-chain, making it very open and transparent. Thus, users joining the Samecoin community can verify whether the amount of all deposited stablecoins is the same, for example, the verifiable amount of SameUSD generated through EUSD or USDT. When participants withdraw or cancel the collateralized stablecoins, the Samecoin protocol will immediately destroy the corresponding SameUSD.

Through a series of processes on the smart contract, it can be said that Samecoin's stablecoin is the most transparent stablecoin on the market to date. An innovative solution One of Samecoin's main goals is to improve the way payments and verifications are executed in the cryptocurrency ecosystem—reducing price volatility and the necessity of time-consuming KYC (know your customer) procedures. Samecoin simplifies the verification conducted by third-party service providers, thereby streamlining crypto payments.

The key to simplifying crypto payments lies in simplifying the verification conducted by third-party service providers. This is achieved through SameID decentralized identity technology, which provides single sign-on across every online store and decentralized application (DApp) supporting Samecoin. This not only enhances security but also ensures that consumers only need to remember one password.

Another important part of Samecoin is SamePay. Currently, the convenient availability of crypto payments remains a stumbling block for the industry's robust growth, while SamePay ensures that cryptocurrencies can be sent to human-readable usernames or phone numbers, eliminating the need for long and hard-to-read string wallet addresses. This significantly lowers the participation threshold for users and enhances the user experience. Samecoin will serve as

The gold standard between the real world and the digital world With the rise of DeFi, users can put idle assets to work, allowing them to generate economic utility in lending, liquidity markets, and other types of DeFi protocols. Currently, stablecoins are mainly dominated by a few projects, with USDC, USDT, and DAI holding a dominant position in the circulating supply and use on Ethereum. USDC and USDT use centralized collateral to maintain their peg to the dollar, with each token issued backed by one dollar's worth of assets. Users holding stablecoins need to understand where the yield opportunities come from. Non-productive assets incur costs, and while assets are idle, stablecoins are often adversely affected by inflation and conversion fees. To offset these potential losses, users can choose to put idle assets to work, providing liquidity in exchange for returns. In DeFi projects, such returns are generally higher compared to traditional investment targets. However, they also come with some risks, such as:

1. Potential 1:1 peg loss;

2. Smart contract attack risks (including economic/protocol design attacks);

3. Yield volatility: changes can occur rapidly after depositing assets;

4. Insufficient liquidity: high volatility of reward tokens, inability to borrow from high-utilization pools, inability to withdraw large positions from high-utilization pools, high slippage when exiting positions;

5. Gas fees: high gas fees can create friction and limit the actions of liquidity providers and users;

To address these issues, the Samecoin protocol introduces a new type of stablecoin mechanism to the stablecoin market—low volatility and strong liquidity. Based on decentralization, Samecoin can scale the supply of stablecoins on demand and ensure that there is a 100% fully collateralized on-chain basket of stablecoins behind it. This design achieves a prudent balance between stability, decentralization, and scalability. We believe that the Samecoin protocol is an ideal economic foundation for the blockchain ecosystem and a reliable alternative for electronic payments.

At the same time, the Samecoin ecosystem plans to launch SamePay on the App Store and Google Play for user access and is applying for financial licenses in several major countries and regions. In addition, SamePay also offers white-label business services to help traditional enterprises develop their own crypto payment businesses. Thus, Samecoin effectively controls the interaction points between real-world assets and digital assets, bringing better financial services and DeFi experiences.

It is worth noting that the Samecoin Dapp Beta was launched last week. The community minted 1.2 million SameUSD within 6 hours of launch, reaching a total of 48.5 million dollars in the first three days. Based on the above analysis

AKA Research Institute believes that Samecoin has the following project advantages:

1. The Samecoin protocol has key advantages over other stablecoin systems. The SAME stablecoins (such as SameUSD) are decentralized and scalable, with new supply generated based on new demand. Samecoin provides more flexibility for ecological governance, and Samecoin holders will benefit from a new mechanism with high collateralization rates and high liquidity.

2. Transactions on SamePay have the lowest fees in the market, making it a highly advantageous application for smaller transfers that are more expensive on other platforms, providing more convenient DeFi services.

3. The Samecoin protocol is one of the few digital asset projects that allow its users to verify the credibility of their stablecoins without relying on third-party audits and some data reports. It is worth mentioning that SameUSD and SameEUR are supported by high-quality stablecoin reserves, rather than being directly backed by fiat currencies (dollars and euros) like USDT, USDC, and other stablecoins.

4. The Samecoin ecosystem has attracted numerous well-known partners and supporters, including Binance Smart Chain, iGamingGroup, BlueOcean Gaming, Hoo Smart Chain, and domestic and foreign investment institutions.