QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$1 733 000 USD
APRIL 2021
GLOBAL
MIDAS DOLLAR
DESCRIPTION OF EVENTS
"Decentralized Stablecoin with an Algorithmic Central Bank. Established team, non-anonymous. Ready & real use-cases for $MDO algo stablecoin with Midas.eco."
"Midas Dollar Protocol is designed by the Midas Protocol team as the algorithmic stablecoin on Binance Smart Chain. Midas Dollar is an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price to bring programmability and interoperability to DeFi."
"Our Vision: To be one of the most completed, most profitable, billion $ marketcap blockchain technology companies in the world. Our Mission: To contribute to global adoption of blockchain technology by offering the most completed range of blockchain products and services for both corporate clients and global consumers. Values: Value creation through applications-focused innovation and customer-oriented creativity. Focus on building human capital and nuture innovative, empowering and inclusive working environment. Always reaching out to build highly creative partnerships for mutual benefits in order to invent and address to new demands/needs for and from the market. Being adoptable, flexible to navigate through everchanging technology landscape."
"Midas Dollar is an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price to bring programmability and interoperability to DeFi. One of the biggest issues of all current algorithmic stablecoins right now is utility. We are glad that MDO has use-cases right away."
"Inspired by Basis and its predecessors (Empty Set Dollar and bDollar), Midas Dollar is a multi-token protocol that consists of three tokens: MDO (the algorithmic stablecoin), Midas Dollar Shares (or MDS, which holders can claim MDO inflation when the network expands), and Midas Dollar Bonds (or MDB, which can be purchased at 1:1 rate when the network is in contraction and can be redeemed with premium for MDO the network returns to its inflationary state, above the $1 peg)."
"When MDO price is below the target price of $1, token holders can purchase Midas Dollar Bonds (MDB) by burning MDO to reduce the circulating supply with a 1:1 ratio, and Bonds will be burnt when users redeem MDO with a premium bonus. In case of redemption, an amount of MDO will be minted according to the TWAP at the beginning of the epoch (for example, if the MDO price is $1.1 then one Bond burnt will get back 1.1 MDO). Important to note is that Bonds have no expiry after purchase."
"When MDO price is above the 1$ peg, the token supply will have to expand to push it back down to 1$ and the contract will allow the redemption of the MDB. When the price of MDO continues trading above the $1 target price after bond redemption, the contract mints an appropriate amount of new MDO. This will be distributed to the Boardroom Stakers. This three token system creates incentives through seigniorage, always pushing MDO towards its peg. MDS is used to redistribute the seigniorage from inflating the asset, while MDB is used to establish a price floor while MDO is in its deflationary state."
"Midas Dollar is the latest product of the Midas Protocol ecosystem as we are strong supporters of algorithmic stablecoins in particular and DeFi in general. However, MDO is an experiment, and participants should take great caution and learn more about the seigniorage concept and supply expansion and contraction mechanism to avoid any potential loss."
The Midas Dollar peg appears to have been lost at some point between April 16th and 19th, 2021. The team announced on Twitter on April 19th, 2021: "We are stronger when we #BUIDL together! Join the #BSC #BUIDL movement and stand a chance to win $15 USD for 10 random winners."
"We loved the project, but we yield miners got crushed with $MDS price came down from ATH of $20K to $6000, and now below $2000, what you guys did is just kicked us out of chat rooms and discord, can't standing up to disappoinment and frustrations!! it's sad."
"As you may already know, the exploitation of Value Defi has affected both MDG and MDO [as of May 16th, 2021]." "We’ve lost about 41430 MDG, 67330 BUSD and 130 BNB. Most of the lost tokens are located in 3 liquidity pools WBNBMDG, MDGBUSD and bCashBUSD."
"IMPORTANT! Migrate your $MDO to $MDOv2 before Jul 13, 20:00 GMT+6." "We realized that there still are a large sum of MDOs not yet migrated to the MDOv2 version. Until the migration completes, we cannot proceed to upgrade the Midas Dollar protocol to a partial collateralization model."
"As previous announcement, the final deadline for MDO to MDOv2 migration is Jul 13, 20:00 GMT+6. Once the migration period is over, we will close the migration gateway — which means it is impossible to convert from MDO to MDOv2."
"Midas Dollar’s upcoming plans and programs will use MDOv2 instead. Hence MDO tokens will no longer be valued in the future. We estimate there are still almost 2 million MDO unmigrated left."
"Midas Dollar’s price [as of November 4th, 2022] is US$0.02252." "The live price of Midas Dollar is $0.0225236 per (MDO / USD)" as of November 8th, 2022.
Midas Dollar was an algorithmic stablecoin which is designed to adjust the supply dynamically to maintain a price peg of $1. While a key part of the pitch was that the team was not anonymous, there were limited details available about who was behind the token. After many months of trading far above the peg, the coin appears to have lost it's peg between April 16th, 2021 and April 19th, 2021 and never recovered. Following that point, the treasury was subsequently depleted in the Value DeFi hack on May 16th, 2021. A new Midas V2 coin was launched and migration was open for several months, although at least 1.7m tokens never completed the migration. The present price of the Midas Dollar stablecoin is below $0.03.
The new Midas Dollar V2 coin does not appear to be monitored on most websites such as CoinMarketCap, DigitalCoinPrice, Messari, or Crypto.com, and presently has an even lower market value according to DexScreener. No updates appeared on the team's Medium account since July 12th, and it appears to be subsequently deleted.
HOW COULD THIS HAVE BEEN PREVENTED?
Midas Dollar failed to back their token with sufficient collateral or insurance.
@ABettaMeta Twitter (Jul 13)
Midas Dollar (Nov 3)
Midas Dollar Price | MDO Price, USD converter, Charts | Crypto.com (Nov 4)
Midas Dollar Price - MDO Price Index, Live Chart and USD Converter - Binance (Nov 4)
https://www.coinbase.com/price/midas-dollar (Nov 4)
https://coinmooner.com/coin/midas-dollar-mdo (Nov 4)
https://digitalcoinprice.com/coins/midas-dollar (Nov 4)
Morioh (Nov 4)
Midas Dollar Historical Data, MDO Daily Open, Close & Volume Insights | Nomics (Nov 4)
@MidasDollar Twitter (Nov 4)
Midas Dollar (Nov 8)
Mdov2 Migration Ending And Gold Commission Re Implements Fees Structure (Nov 8)
Midas.eco – Medium (Nov 8)
https://coinmarketcap.com/currencies/midas-dollar-share/ (Nov 8)
https://messari.io/asset/midas-dollar (Nov 8)
MDOv2 $0.003071 - Midas Dollar 2.0 / BUSD on BSC / Unknown DEX - DEX Screener (Nov 8)
Midas.eco – Medium (Nov 8)
@MidasDollar Twitter (Nov 8)
@realarchitekt Twitter (Nov 8)
Telegram: Contact @midasprotocolglobal (Nov 8)
Midas Protocol (Nov 8)
Midas Protocol (Nov 8)
Midas Dollar Protocol - Midas Dollar (Nov 8)
Tokens - Midas Dollar (Nov 8)
