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🔥 Today's Hot Topic: #MyTopAICoin#
Altcoins are heating up, AI tokens rising! #WLD# and #KAITO# lead the surge, with WLD up nearly 48% in a single day. AI, IO, VIRTUAL follow suit. Which potential AI coins are you eyeing? Share your investment insights!
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1️⃣ How do you see AI tokens evolving?
2️⃣ Wh
In the world of Crypto Assets, DOLO is quietly emerging, and its performance is eye-catching. Not long ago, its price even rose to $0.38, demonstrating strong market momentum. However, initial hype alone is not enough to guarantee the long-term development of a project.
Many crypto projects, although receiving a lot of attention in their early stages, often struggle to sustain themselves. This usually stems from two main issues: one is that there are flaws in the mechanism design, leading to a loss of funds; the other is that the ecosystem is not rich enough to maintain long-term demand. DOLO's recent initiatives precisely address these two pain points:
First, DOLO has updated its interest rate model aimed at improving the stability of borrowing. Secondly, it is actively promoting cross-chain expansion, venturing into more blockchain ecosystems to broaden its growth space. This strategy, which emphasizes both stability and proactivity, may be the key to whether DOLO can stand out in long-term competition.
In terms of optimizing interest rate models, DOLO underwent an important upgrade at the end of July. It replaced the previously volatile single interest rate curve with a more stable "dual-slope model". This change means that even in cases of high capital utilization, interest rates will not rise indefinitely, but will be controlled within a relatively reasonable range.
The importance of this initiative is self-evident. In the field of decentralized finance (DeFi), one of the biggest risks faced by lending pools is "interest rate control issues." Excessively high utilization rates can lead to skyrocketing interest rates, forcing borrowers into liquidation; conversely, excessively low interest rates can weaken the motivation for liquidity providers to deposit, resulting in liquidity depletion. Established protocols like Aave and Compound have gradually perfected their interest rate models after multiple adjustments.
DOLO has relatively early optimized this aspect. Such a design allows borrowers not to worry about sudden and significant increases in interest rates, while also ensuring that lenders can steadily profit within a reasonable range of returns. This balanced mechanism design is expected to lay the foundation for DOLO's long-term stable development.