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WaykiChain Guide

WaykiChain is a blockchain project that aims to develop its own bottom-layer chain and ecosystem. 

Currently, their most highly-sought product is a stablecoin platform that functions using a three-token economy model. Ultimately, they want to provide blockchain-based infrastructure services and industry solutions globally. 

In this guide, we shall talk about the different parts of the WaykiChain system and their respective functions.

Network Participants

The WaykiChain ecosystem provides many different opportunities for all its users. It works smoothly through the efficient coordination of the different elements of the network, as well as the incentives that are in place.

Super nodes

A blockchain inherently has no direct access to real-world data. Therefore it needs the so-called ‘oracles’ for that purpose. In Wayki, they call them super nodes.

Super nodes are a group of price feed data providers to the Wayki Chain. They provide real-time market prices for WICC, BTC, ETH, WGRT, and potentially other currencies that will be supported by WaykiChain in the future.

In order to become a super node, a user needs to lock up 2,100,000 WICC in the system.

Governors

Governors are crucial to the stability, maintenance, and continuous operation of the WaykiChain stablecoin system. You could say that they are the glue that binds everything together. After all, they hold the power to propose changes to underlying system parameters.

Yet all it takes to become a governor is to hold WGRT, the governance coin. And any governor who wants to submit proposals need only follow a few steps.

How Proposal Submissions Work

  1. First, a governor needs to lock up 210,000 WGRT for the proposal to become qualified.
  2. There will be a one-week voting period which will enable other WGRT holders to vote on the proposal, with one coin representing one vote. These other governors can opt from three choices: “Agree”, “Disagree”, “Abstain.”
  3. Then, the votes undergo confirmation. In order for the proposal to become ingrained in the system, the following conditions need to be accomplished: over 20% of the circulating WGRT must participate in the voting process, and over 60% of the voters need to choose “Agree”.
  4. If the conditions are met, the passed proposal will be effective immediately.

Pledgors

Pledgors are basically users who pledge an asset, which could be WICC, BTC, or ETH, into CDPs in order to acquire the WUSD stablecoin.

Liquidators

There are normal CDPs, as well as abnormal CDPs. The abnormal CDPs, those with collateralization rates that are less than 150%, can be liquidated by the liquidators instead of just the pledgers who locked them up.

Liquidators can be anyone in the system who holds WUSD. They play a key role in keeping the overall system stable, as they are incentivized to participate in the liquidation process in order to gain profits.

Three-token economy model

The WaykiChain ecosystem consists of three main coins: WUSD, WICC, and WGRT.

WUSD

WUSD is the stablecoin of the WaykiChain chain. It is used for sending and receiving payment transactions across the system.

WICC

WICC is the primary liquidity asset, which was initially the only cryptocurrency that can be collateralized into CDPs and generate WUSD. However, BTC and ETH are now supported. Furthermore, more coins will be added to the list in the future.

WGRT

WGRT is a governance coin that was created to maintain the stability of the stablecoin platform. 

W represents WaykiChain

G represents Governance

R represents Rights

T represent Treasure

In exchange for the risk associated with investing in the platform, the holders get to enjoy the benefits of shared revenue for the system maintenance, as well as be responsible for governing the platform.

How CDPs Work

A Collateralized Debt Contract is a mechanism for securing an asset that is locked up by a pledgor. The stablecoin (WUSD) generated by the pledgor from the CDP is considered the debt they owe to the system while the asset they pledged represents the collateral.

In order to reclaim their asset, the pledgors need to pay back the WUSD they owe. This structure is very similar to traditional lending systems. As such, the amount of debt must be lower than the value of the collateralized asset.

How to Create a CDP

In order to create a CDP, a user only needs to initiate a transaction in the system, then specify what asset and how much he wants to pledge, as well as the amount of stablecoin he wants to borrow.

Once the transaction is complete, the pledged asset will be locked up in a CDP.

How to Close a CDP

The pledgor is required to pay his debts, as well as the corresponding stable fees in order to redeem the pledged asset. Moreover, the system only accepts WUSD as payment for closing CDPs. After the full payment of debts and fees, the collateral assets will be returned to pledgor and the CDP will close.

The WUSD used for paying stable fees will be converted into WGRT and burned, and thus, shrinking its circulating supply. 

Stability Mechanism

The crypto market is inherently volatile, which poses a challenge for most crypto-collateralized stablecoin platforms. In order to circumvent this, WaykiChain employs a clearing mechanism as well as a Risk Reserve Fund in case it goes out of control. In the worst case, the system still has contingencies in place to protect itself.

Clearing

While the normal CDPs belong only to its pledgors, abnormal CDPs can be liquidated by any liquidator interested in making a profit. However, its original pledgor can still redeem the CDP himself.

Abnormal CDPs are those that have locked up assets worth less than 150% of the WUSD it generated. In such cases, the liquidated assets will be sold to any liquidator at a discount of 97%. Some users make it their full-time job to simply search for arbitrage opportunities like this in order to make a profit. It’s a win-win for the liquidators and the system.

Risk Reserve Fund

Despite having liquidators in the system, there is still that systemic risk that the volatility of the underlying assets may lead to insolvency for the abnormal CDPs. Therefore, the WaykiChain has put up a second defense mechanism in the form of the Risk Reserve Funding Pool.

In a Black Swan event, the Risk Reserve fund will be used to resolve the insolvency and close the abnormal CDPs.

The funds come from two main sources:

  1. A portion of the assets raised from the issuance of WGRT
  2. A portion of each liquidation penalty is put into the Risk Reserve Fund Pool

WaykiChain Blockchain Protocol

The WaykiChain system is built around the DPoS+pBFT (Delegated Proof-of-stake + Practical Byzantine Fault Tolerance) consensus mechanism, which generates a new block every 3 seconds, instead of every 10 minutes like in Bitcoin. 

This mechanism consists of 11 super nodes that are set up by voting. According to the WaykiChain whitepaper, the transaction throughput of their system can reach up to 7,800 TPS but runs at 3,300 TPS on average. Remember, Bitcoin can only do 7 TPS, so there is an enormous gap.

Conclusion

WaykiChain is no stranger to the crypto community. They’ve launched since the beginning of 2018, survived the crypto winter, and are now stronger than ever. 

Their renown and community support have increased drastically in the last few months. In fact, there is no telling how far they can go from here.

Despite having a very broad and ambitious goal, it is their stablecoin platform that’s currently receiving most of the attention and praise from the crypto community. Regardless, WaykiChain seems to have a very robust system, not to mention very high transaction speeds that put even the most prominent blockchains to shame.

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