A stable coin means peace of mind. Predictable currencies allow buyers and sellers to exchange value without the risks of volatility. In the xDai Stable Chain implementation, transactions are conducted using xDai, a stable coin with 1:1 value ratio to Dai. Because transactions occur on a bridged sidechain, they are extremely fast and inexpensive. In addition, transactions and fees are paid with a single coin.
The xDai chain provides a vital public utility for users - the ability to transfer stable value free of speculative concerns, volatility, or FUD (fear, uncertainty & doubt). xDai is an independent network, built to support transactions that hold value. When DAI is bridged to xDai, it moves to a platform with a clear, transparent purpose; secure & stable transactions on a fast, neutral network.
xDai’s value is not determined by crypto-market forces, removing much of the drama that permeates the blockchain space. Open governance, open access, and token stability create a trusted environment for users as well as applications built on top of xDai.
To move to a permissionless structure, the xDai Stable Chain will (pending validator approval) adopt a delegated Proof of Stake (DPOS) consensus mechanism. The POSDAO white paper describes all aspects of this new consensus protocol, called POSDAO consensus, including a complete overview of the theory, rationale, security, and a detailed implementation section.
The STAKE token will be used by validators and delegators to secure the xDai chain. Assuming DPOS is enacted, users will have the opportunity to participate in chain consensus, either as validators running xDai nodes, or delegators placing stake on those nodes. While participants will place STAKE to secure the chain, they will receive rewards in both STAKE and xDai thanks to the unique reward mechanics.
Additional sidechains will also have the opportunity to use STAKE to secure their chains, making this the first multi-chain enabled staking token.
Two bridges connect the xDai Stable Chain to the Ethereum mainnet, supporting seamless two-way asset transfer between chains. Tokens are acquired on the mainnet, then bridged to the xDai Stable Chain sidechain using either the Dai-xDai bridge for transactional tokens, or the DPOS bridge for staking tokens. Once a user is finished transacting or staking, tokens can be bridged back to the mainnet with ease.