Light Wallet Update: Change in value label from USD to USDT

To the users of DeFiChain LightWallet:

Some users would have noticed instances where a discrepancy in the value of assets exists when it is indicated in USD. This is not a bug, but an expected behavior of DEX.

Currently, when the value of assets is displayed in USD, the value of USD is obtained using the value of USDT on the DEX. In normal circumstances, this operates well as the value of USD:USDT tends to be 1:1 on the DEX. However, the introduction of the new LP pairs (e.g USDT) has led to a change in value of USDT, which is expected behavior of any DEX. As such, when. the value of assets in USD is displayed (which is derived from the value of USDT), a discrepancy occurs.

As an example, USDT is currently ranging between USD$1.2 to USD$1.3 on. the DEX. As a user, if you have 1000 dUSDT, you would see that the value of your portfolio ranges between US$1200 to US$1300.

To address this discrepancy, 3 options are possible:

Option 1 was not favorable as it introduces external counterparty risks which are beyond control, while Option 2 leads users into thinking they have more/less assets than they should, which might result in potential losses if users act on that information.

Therefore, after careful deliberation, Option 3 was chosen as it provides the highest accuracy in the representation of the value of an user’s assets. This change will be reflected in Light Wallet v2.5.0. Rest assured that this update will not affect the actual value of your funds.

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About Birthday Research

Birthday Research is the blockchain R&D arm of Cake DeFi that develops best-in-class blockchain innovations, with the mission of enabling the next bound of Web3 through open-source blockchain research and development.

Birthday Research’s work spans cryptographic research, deep blockchain consensus development, and smart contracts development — with a laser-sharp focus on pushing the industry frontier while tackling the most demanding DeFi challenges of today.