DIA token review: Should you buy DIA in 2021?
The DIA Networkis an open-source oracle provider delivering transparent, accurate, and scalable data to smart contracts. Instead of collecting data from different sources like other oracles, DIA offers bounties for users to create and validate data, making its data truly decentralized and reliable. Investors can stake its governance token, the DIA token, to earn returns.
In under 3 months, the total value locked in DeFi protocols more than doubled from around $15 million in January of 2021 to over $45 million in March of the same year.
With so much money at stake, however, it’s not just legit investors who are eyeing profits. Malicious actors are jumping on any opportunity to hack systems and pocket millions of dollars in profits.
Some major platforms such as Balancer, Uniswap, and MAKER reported losses in the millions of dollars in 2020 thanks to the latest trend of DeFi attacks known as price oracle manipulation.
- What are oracles?
- What is DIA Network?
- How the DIA Network works
- What is the DIA token and how is it used?
- DIA money investing: Should you invest in the DIA Network?
- How to invest the DIA token
- How to buy the DIA token
- Buy DIA token without trading your crypto on MyConstant
But before we get into that, let’s talk about oracles.
What are oracles?
Oracles are services that feed data such as pricing information into smart contracts that execute transactions on the blockchain.
Data is the lifeline of smart contracts and DeFi protocols depend on accurate data to run smoothly. When trading BTC for ETH on a decentralized exchange, for example, the exchange relies on an oracle to get the current price of the coins on the internet.
When an attacker wants to make a profit, they can interfere with (deflate or inflate) the price of an asset in a smart contract with faulty data, trade the asset, and then benefit from the margin.
With such attacks on the rise, smart contracts have now become keen on incorporating oracle services that cannot be manipulated.
Recently, DIA network has become one of the most trusted oracle services on the market. Unlike popular competitor protocols like Chainlink and BAND protocol which collect data from many different sources and have users verify, DIA network lets its users provide and validate data. This system makes data more transparent, auditable, and accurate.
In this article, we’ll review DIA Network and discuss whether or not you should invest your money in DIA coin.
What is DIA Network?
DIA, an acronym for Decentralised Information Asset, was co-founded in 2018 by a team of computer scientists, financiers, and economists with substantial experience in blockchain tech.
The DIA network has been dubbed the Wikipedia of financial data due to its method for obtaining data. Stakeholders provide, validate, and publish data in an entirely user-controlled system based on reputation. The network makes the methodologies that stakeholders use to obtain and validate data available to the public.
How the DIA Network works
The DIA Network consists of 3 parties: data users, providers, and analysts. Here is a step-by-step breakdown of how the platform works:
Data users like blockchain-based lending platforms issue data requests when they need particular data points that aren’t available. These stakeholders create a ticket and fund their data requests using DIA tokens. These tokens act as a reward to the successful data provider.
Data users can access historical data for free from DIA oracles or API endpoints but pay a fee to obtain live data.
Data providers are individual users who use internet scrapers to provide the requested data for DIA token rewards. Anyone can apply to become a data provider on the DIA Network.
After data providers submit their data, data analysts decide which data provider will be used to fulfill a data request and receive a reward through a staking process. Validators stake their DIA to a node and exert more influence the more DIA they stake. If a node validates incorrect data then it will be penalized.
Validated data is then made available to the user through an open-source database on the DIA platform.
What is the DIA token and how is it used?
DIA is the governance token of the DIA Network, launched in August of 2020.
The DIA token is used for:
- Voting on platform changes and new developments – The DIA community and token holders develop the DIA network. As a token holder, you can suggest new ideas to improve the platform, provide funding, and vote on new developments by staking your DIA.
- Funding data needs – If you need data for a blockchain project, you can put bounties on specific data needs using the DIA token.
- Validating data through staking – You can also stake DIA tokens to earn the right to validate existing oracles, methodologies, and more for small rewards.
- Making payments– You can access live data on the DIA network or buy specific APIs using DIA tokens.
While the DIA token sold at only $0.67 in the August 2020 ICO, it has since grown by over 400% in under a year. DIA token was valued at $3.83 as of March 18th, 2021 according to Coingecko.
DIA money investing: Should you invest in the DIA Network?
DIA looks like a promising project for many reasons:
Its crowd-data model
DIA Network is completely owned, controlled, and maintained by its users making DIA Network’s model makes it stand out as a truly decentralized, accurate, and transparent oracle service platform compared to its competitors.
Partnerships with various DeFi platforms
Various DeFi platforms are already using DIA as their oracle of choice. On its blog, DIA reported over 5 integrations within 3 months from December 2020 to March 2021 and more projects on the pipeline.
Some of DIA Network’s partnerships include:
- Tixl.Finance, a platform that provides crypto data to traders and investors
- PiSwap DeFi, a DeFi platform that provides various services including yield farming, gaming, DApp development, and more.
- Binance Smart Chain, a platform associated with Binance, one of the largest crypto exchanges, where you can stake and create smart contracts with BNB.
- Ankr, a node hosting platform that also allows you to stake various coins for interest including Binance Coin(BNB).
DIA labs is a $250,000 grant project by the DIA Network to offer support to anyone who wants to develop DeFi projects that meet their set criteria. Some of the qualifying projects include:
- Projects that enable more efficient data sourcing
- Additions to the DIA Network
- Features that enable interoperability in the DeFi ecosystem.
The DeFi labs project encourages innovation on the DIA Network and in DeFi as a whole. It also promotes the distribution of the DIA token which is good for business.
The DIA Network undergoes regular code audits to check for vulnerabilities.
Chainsulting, a Blockchain development and consulting firm, carried out an audit of the DIA network’s code in August 2020 and claims to have found “no major security vulnerabilities.”
To maintain security, the DIA Network also provides users with bounties for finding errors and bugs on the platform.
While the DIA project looks promising, it’s advisable to keep watch on the market as crypto investments can be very volatile. It’s also important to remember that DIA has two major competitors that debatably have more market share and publicity (Band and Chainlink) that could hurt adoption.
How to invest the DIA token
You can invest the DIA token through staking and providing liquidity to a liquidity pool.
- Staking DIA and earning interest
In August 2020, the DIA Network began the DIA interest allocation program. This is a project where DIA holders lock in their tokens in an interest-earning account for fixed periods of 3, 6, or 2 months. Earnings start at 10%, 15%, and 22% respectively for each of the periods.
- DIA staking on other platforms
You can also stake your DIA tokens on platforms like Binance for a return of at least 10% APY. Staking terms range from between 1 to 3 months.
- Providing liquidity to liquidity pools
Liquidity pools are a collection of tokens in a smart contract. They solve the problem of shortage of certain types of crypto assets by letting you deposit an asset or asset pairs in a pool to fulfill orders in exchange for a share of the trading fees.
Some of the platforms where you can provide liquidity to DIA liquidity pools are Balancer and Uniswap.
How to buy the DIA token
There are two ways to get the DIA token. You can either:
- Buy it with fiat currency (using your credit card) on a platform like Binance
- Trade Bitcoin (BTC), Ethereum (ETH), or other assets like USDT and BNB for DIA. The top exchanges for DIA are Binance, Bidesk, HBTC, OKEx, and VCC Exchange.
You can store DIA token in any major ERC20 wallet such as Trust wallet and MetaMask.
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