Anti-Volatility Measures with DAI
2key network

Anti-Volatility Measures with DAI

By benlakoff | BenLakoff | 19 Mar 2020



DeFi has become the stand-out application of blockchain technology. There have been some bumps lately, but I'm still long-term bullish on the space.

2key Network has chosen DAI over other stablecoins for the hedging process involved to protect users’ funds once they launch a campaign.

With 2key, your USD Rewards balance (say, $5), will be pegged automatically to $5 in DAI.

With 2key, anti-volatility measures exist so that your $5 will remain $5 even when you choose to withdraw this reward as 2KEY.

This USD-pegged hedge for campaign funds, even though the claimed rewards will be in 2KEY, makes sure the promised payout is maintained.

Once a user deposits a campaign’s rewards, other DeFi protocols will be pulled in: Bancor will offer real-time pricing and Kyber will offer liquidity.

Beyond only budget protection, this mechanism makes Smart Links and DeFi desirable at a global scale. 2key Network serves a global network of users. While stablecoin hedging benefits people across the board as market value of payments is retained, countries with high inflation can maintain promotion rewards that beat domestic currency devaluation, enabling the ability to create promotional campaigns that may become increasingly appealing to users.

This hedging mechanism enables users in any country to launch promotions for domestic SMBs while maintaining a rewards system priced at an international level.

Even through this (current) storm, 2key is a proud partner with MakerDao and DAI.


Head of Business Development at 2key


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