While we were brainstorming what to develop for the Hackathon, we first made some research about the tools and the ecosystem that we will be part of. We found that Chia is a very new coin that although it has great ideas it is in a very early stage of development. By exploring the ecosystem, we found just one external wallet (external meaning not downloading nodes):
On the same side we have a few exchanges offering trades and so forth with Chia, but no Decentralized ones:
When looking at the development options we had with the current Chia we are quite limited by the stage of development as it is a very new project. But it is obvious that at this point the projects to be developed should focus primarily on creating robust infrastructure.
If we compare the current state of Chia with the historical rise of other cryptocurrency (knowing that its future trajectory might vary) we can see how it all emerged and that can give us an idea of what to focus on. At first we had the initial Blockchain in Bitcoin with it development tools (wallets, faucets etc.) and also Coloured coins emerged creating the first crypto ecosystem. Then we had the introduction of Smart contracts with Ethereum, and that gave rise to Decentralized exchanges (such as 0x), then with further development standards for tokens such as ERC-20 and others came forth creating a vast ecosystem of tokens and projects. From that point and a couple years in the future that gave rise to NFTs. If we compare the current state of Chia with that, we can see that it is perhaps too early for NFTs and they are not really that important at this point.
But a project that includes current developments (still in beta) such as Coloured coins and some smart contracts, that can give interoperability with projects that have already developed several facets and developer tools can give that Robust infreastructure that we want, and even accelerating adoption.
What chia as a coin need right now
Apart from that, we also explored market price action and we can find stuff such as this:
This is quite normal for a new project, but it denotates the great levels of volatility for the project now. We also need a hedge against that.
Having that in mind, we decided to create a Decentralized exchange based on Serum (a Solana project) that can interoperate with a Chia coloured coin. Thus, giving the project the needed interoperability with the current crypto world. Of course, in this case the Chia Coloured coin will be a Stablecoin. With that we will grant a hedge against that volatility, increase interoperability, and create Robust infrastructure for other projects.
Projects of this kind that bring interoperability between chains have performed extremely well in the market.
Having said this let's explain the features of both sides of the coin on our project. We have two main parts: Our DeX Salvia Swap and the Stablecoin Chia Dollar.
Created with Serum it brings interoperability between Solana and Chia. It was quite important for us to use a chain that kept the "green practices" of Chia in mind. The Salvia platform was developed using the Facebook Reactjs framework, this to develop the tools for management and exchange from Chia for our Chia Dollar token.
The complete application has the integration of Pantom Wallet (chack our images) to give it its interoperability.
As we do not have still a standard or wallets available in the Chia ecosystem, those will be added in the future or developed by us.
The trading section is based on the Dex of project serum to integrate the entire trade of currencies such as Solana, https://projectserum.com/#/.
The Swap section would not allow you to change from Chia to Chia dollar, the value is updated from the coin marketcap api.
The liquidity and staking sections are still in development.
In turn, the hosting of the page was done through AWS amplify to maintain a scalable and reliable platform.
This is the meat and potatoes of the project, perhaps the first Stablecoin developed through Chia Coloured coins, of course, at this moment it is an algorithmic one that works assigning Proxy-coins to the momentary value of the dollar at that point in time. For a more technical explanation you can go to our repository.
The overview of the stablecoin is as follows:
By the process of controlling through a proxy the Minting and burning of said supply of the coloured coin created in Chia we can adjust the pegged price to the dollar. In this case we are using the APIs of Coinmarketcap in relation to the price of USCD to peg that value. In addition to that as the collateral grows within the project, the Stablecoin can swap from an algorithmic one to a collateralized one slowly, or if we follow our roadmap we can accelerate that process from the start by injecting capital into it.
What's next for Chia Dollar
Of course, the project is still in its early stages, but we think it is a great example of how we can create great infrastructure and interoperability between chains. All this, while deploying the development tools we had at hand. Having said that we are eagerly waiting for the standards of tokenization, smart contracts and NFT's to transition the platform to a Chia based one.