Paradox DAO is a decentralized reserve currency protocol available on the Cronos Network based on the PRDX token. Each PRDX token is backed by a basket of assets (e.g. FRAX, CRO) in the PRDX treasury, giving it an intrinsic value that it cannot fall below. Paradox DAO is a fork of OlympusDAO on Cronos network.
The answer to that questions highly depends on what you consider safe and what you don't.
Let's dive deeper into Safety. Any investment on DeFi is risky, and whoever stating the opposite is wrong.
Paradox DAO has forked Olympus DAO, which is a safe start, and additionally, the team has KYC'd to a third party actor, MCN Ventures. This means that MCN Ventures has all the Identity documents from the team members, preventing any non-legit movement from the team as they would face legal responsibilities for their actions in the unlike case they did it so. Also the treasury is managed by a Multi-sig wallet.
So, yes Paradox DAO is as safe as it can be, but for you to be safe it's quite important that you understand the logic behind it. If after reading all these documentation you still have questions jump in our discord. Some people need to read to learn, some people need to talk to learn.
Dollar-pegged stablecoins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether. Users are comfortable with transacting using stablecoins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is a fallacy. The dollar is controlled by the US government and the Federal Reserve. This means a depreciation of dollar also means a depreciation of these stablecoins.
PRDX aims to solve this by creating a non-pegged stablecoin called PRDX. By focusing on supply growth rather than price appreciation, PRDX hopes that PRDX can function as a currency that is able to hold its purchasing power regardless of market volatility.
No, PRDX is not a stable coin. Rather, PRDX aspires to become an algorithmic reserve currency backed by other decentralized assets. Similar to the idea of the gold standard, PRDX provides free floating value its users can always fall back on, simply because of the fractional treasury reserves PRDX draws its intrinsic value from.
Each PRDX is backed by 1 DAI, not pegged to it. Because the treasury backs every PRDX with at least 1 DAI, the protocol would buy back and burn PRDX when it trades below 1 DAI. This has the effect of pushing PRDX price back up to 1 DAI. PRDX could always trade above 1 DAI because there is no upper limit imposed by the protocol.
Think pegged == 1, while backed >= 1.
<aside> 💡 You might say that the PRDX floor price or intrinsic value is 1 DAI. We believe that the actual price will always be 1 DAI + premium, but in the end that is up to the market to decide.
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PRDX is an algorithmic reserve currency protocol that aims to hold its purchasing power regardless of market volatility via focusing on supply growth rather than only focusing on price appreciation.