[XENEA Wallet] Daily Quiz Jun Answers and Trivia! ✨️ updated daily ✨️
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XENEA Wallet features a Daily Quiz that enhances user engagement while offering a fun and gamified way to learn about Web3 and the Xenea ecosystem.
Although many kind individuals are sharing answers on X (formerly Twitter), it feels like the quiz is turning into a game of simply picking the right answer without understanding the questions. To address this, this article will provide not only the answers to XENEA Wallet’s Daily Quiz but also the reasoning behind them and additional insights. By leveraging XENEA Wallet NAVI (ChatGPT), we aim to make the experience more informative and meaningful.
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Daily Quiz on JUN 30
🟢Quiz Questions:
In Polkadot, XCM denotes:
🟢Choose one correct answer:
・A built-in DeFi token swap module on Polkadot.
・A cross-consensus messaging format for parachain communication.
・Ethereum’s sharding interoperability standard proposal.
・A method for submitting on-chain governance referenda.
🟢Answer:
A cross-consensus messaging format for parachain communication.
🟢Reason for choosing this answer:
XCM (Cross-Consensus Messaging) is a communication format developed by Polkadot to enable interaction between different parachains and consensus systems within its ecosystem. It ensures that messages, such as instructions and token transfers, can be understood and securely executed across different blockchains that may have distinct consensus rules. This makes Polkadot’s multi-chain architecture interoperable and cohesive.
🟢Trivia:
XCM is not just limited to parachains but is also designed to work between different blockchains in the broader Polkadot ecosystem, including the relay chain. Unlike bridges that rely on external validators, XCM operates within Polkadot’s native security model, making it inherently safer and more efficient for cross-chain communication.
Daily Quiz on JUN 29
🟢Quiz Questions:
A sidechain is
🟢Choose one correct answer:
・A deprecated synonym for sharding technologies.
・A validator node that operates on standby mode.
・A second thread of blocks inside one chain’s header structure.
・A parallel blockchain pegged to a main chain for asset transfers.
🟢Answer:
A parallel blockchain pegged to a main chain for asset transfers.
🟢Reason for choosing this answer:
A sidechain is a separate blockchain that runs in parallel to a main blockchain (mainnet) and is connected to it via a two-way peg. This allows digital assets to be transferred between the main chain and the sidechain, facilitating scalability, experimentation, and specific use cases without burdening the main network. Sidechains can operate under their own consensus mechanisms, enabling innovation without compromising the security or structure of the main chain.
🟢Trivia:
One of the earliest and most referenced sidechains is the Liquid Network by Blockstream, which allows for faster transactions and confidential transfers for Bitcoin. Sidechains are also used in Ethereum-compatible ecosystems to offload smart contract execution or to run specialized applications like gaming, where higher transaction throughput is needed.
Daily Quiz on JUN 28
🟢Quiz Questions:
A key risk with cross-chain bridges is:
🟢Choose one correct answer:
・Smart-contract exploits or validator key theft causing fund losses.
・Zero additional risks beyond normal blockchain operation.
・Guaranteed slowdown of every connected blockchain’s throughput
・Automatic inflation by duplicating tokens on each chain forever.
🟢Answer:
Smart-contract exploits or validator key theft causing fund losses.
🟢Reason for choosing this answer:
Cross-chain bridges often rely on smart contracts or centralized validator nodes to lock and mint tokens across chains. These elements are high-value targets for hackers. Exploits of smart contracts or theft of validator keys have led to major incidents, such as the Ronin and Wormhole hacks, which resulted in the loss of hundreds of millions of dollars. Thus, this is the most accurate and critical risk among the listed options.
🟢Trivia:
The Ronin Bridge, used by the popular game Axie Infinity, was hacked in 2022, resulting in a loss of over $600 million. This attack was one of the largest in DeFi history and highlighted the importance of improving the security of cross-chain bridge architectures.
Daily Quiz on JUN 27
🟢Quiz Questions:
Which is NOT an interoperability protocol?
🟢Choose one correct answer:
・Uniswap
・Polkadot
・LayerZero
・Cosmos IBC
🟢Answer:
Uniswap
🟢Reason for choosing this answer:
Uniswap is a decentralized exchange (DEX) protocol, primarily focused on enabling the swapping of tokens within the same blockchain network (e.g., Ethereum). It is not designed as an interoperability protocol. In contrast, Polkadot, LayerZero, and Cosmos IBC are specifically built to enable communication and data exchange across different blockchain networks—i.e., they are interoperability protocols.
🟢Trivia:
Interoperability protocols like Cosmos IBC and LayerZero play a key role in the multichain future of Web3. Cosmos IBC (Inter-Blockchain Communication) allows different Cosmos-based chains to interact seamlessly, while LayerZero enables omnichain interoperability across diverse ecosystems. Polkadot connects multiple blockchains via its relay chain, facilitating secure cross-chain transfers and messaging.
Daily Quiz on JUN 26
🟢Quiz Questions:
“Chainlink’s CCIP lets smart contracts:”
🟢Choose one correct answer:
・Sync corporate databases directly into block headers.
・Host Chainlink price feeds on a private database system.
・Replace existing consensus algorithms on a single blockchain.
・Send tokens and data across multiple chains via oracle networks.
🟢Answer:
Send tokens and data across multiple chains via oracle networks.
🟢Reason for choosing this answer:
Chainlink’s Cross‑Chain Interoperability Protocol (CCIP) is specifically designed to let smart contracts transfer tokens and arbitrary data across different blockchains through decentralized oracle networks . None of the other options align with CCIP’s core functionality.
🟢Trivia:
CCIP supports not only token transfers but also Programmable Token Transfers—which combine token movement with accompanying instructions for the destination contract, enabling powerful cross‑chain workflows like automatically staking received tokens .
Daily Quiz on JUN 25
🟢Quiz Questions:
LayerZero secures messages by:
🟢Choose one correct answer:
・Routing all data through one central super-chain validator.
・Combining decentralized oracle and relayer services to verify transfers.
・Embedding every message inside a Bitcoin transaction hash.
・Forcing connected chains to unite their consensus processes.
🟢Answer:
Combining decentralized oracle and relayer services to verify transfers.
🟢Reason for choosing this answer:
LayerZero uses a dual-verification model, where a decentralized oracle (e.g., Chainlink) provides block header data from the sending chain, and an independent relayer submits the transaction proof. The receiving chain’s smart contract (endpoint) checks that both match—ensuring trustless cross-chain message delivery, as collusion between two separate entities is highly unlikely.
🟢Trivia:
This oracle+relayer architecture forms the core of LayerZero’s security, avoiding reliance on a centralized intermediary and enabling truly decentralized interoperability.
LayerZero employs an Ultra-Light Node (ULN) design, minimizing on-chain state while leveraging oracles and relayers for validation—offering both efficiency and high security.
Daily Quiz on JUN 24
🟢Quiz Questions:
LayerZero is best described as:
🟢Choose one correct answer:
・A pure layer-2 scaling network for Ethereum gas savings.
・A mining hardware device for cryptographic hashing.
・An omnichain protocol for cross-chain message passing.
・The nickname of a blockchain’s very first genesis block.
🟢Answer:
・An omnichain protocol for cross-chain message passing.
🟢Reason for choosing this answer:
LayerZero is designed to facilitate communication between different blockchains, allowing decentralized applications to send messages and transfer assets across chains in a seamless, trust-minimized way. It achieves this through a unique combination of smart contracts and lightweight nodes. Unlike typical layer-2 solutions or mining hardware, LayerZero focuses on interoperability and cross-chain functionality.
🟢Trivia:
LayerZero Labs, the team behind the protocol, launched the project to address fragmentation in the blockchain ecosystem. Its protocol allows dApps to be truly omnichain — not bound to a single chain but accessible across multiple. One of its most well-known integrations is with Stargate, a bridge built on LayerZero, which allows users to move tokens between chains with guaranteed finality.
Daily Quiz on JUN 23
🟢Quiz Questions:
Key difference between Polkadot and Cosmos:
🟢Choose one correct answer:
・Polkadot uses proof-of-work, while Cosmos is proof-of-stake only.
・Polkadot shares security via Relay Chain; Cosmos chains keep separate validators.
・Cosmos forces all zones to share validators; Polkadot does not.
・Token transfers are impossible under Polkadot’s architecture.
🟢Answer:
Polkadot shares security via Relay Chain; Cosmos chains keep separate validators.
🟢Reason for choosing this answer:
Polkadot employs a “Relay Chain” which provides shared security to all connected parachains—meaning every parachain inherits the same validator set and security model. In contrast, Cosmos chains (called zones) use their own separate validators, making them sovereign chains with independent security. This is a fundamental architectural difference between the two ecosystems.
🟢Trivia:
Polkadot enables seamless token and data transfers between parachains using a protocol called XCM (Cross-Consensus Messaging). Cosmos also supports interoperability via IBC (Inter-Blockchain Communication). These mechanisms highlight both projects’ efforts toward blockchain interoperability, though with different approaches to security and governance.
Daily Quiz on JUN 22
🟢Quiz Questions:
A zone in Cosmos is:
🟢Choose one correct answer:
・An independent blockchain linked to a Cosmos hub.
・A staking contract on Cosmos Hub for delegators.
・An Ethereum sidechain designed by Cosmos.
・A layer-2 rollup that batches transactions.
🟢Answer:
An independent blockchain linked to a Cosmos hub.
🟢Reason for choosing this answer:
In the Cosmos ecosystem, a “zone” refers to an independent blockchain that operates its own consensus mechanism and governance, but is interconnected with other zones via a Cosmos Hub using the Inter-Blockchain Communication (IBC) protocol. These zones can communicate and exchange data and tokens securely through the Cosmos network’s hub-and-spoke model. This design allows each zone to maintain sovereignty while benefiting from interoperability.
🟢Trivia:
The Cosmos network, often described as the “Internet of Blockchains,” was designed to overcome the fragmentation of blockchain ecosystems. Through the IBC protocol, it enables cross-chain communication and token transfers without relying on centralized exchanges or bridges, offering a highly secure and decentralized alternative.
Daily Quiz on JUN 21
🟢Quiz Questions:
In Cosmos, IBC stands for:
🟢Choose one correct answer:
・International Blockchain Council governing global standards.
・Inter-Blockchain Communication protocol for cross-chain messages.
・Integrated Blockchain Consensus for finality.
・Instant Block Confirmation technology.
🟢Answer:
Inter-Blockchain Communication protocol for cross-chain messages.
🟢Reason for choosing this answer:
IBC stands for Inter-Blockchain Communication, a protocol developed by the Cosmos ecosystem to enable secure and permissionless communication between different blockchains. It allows different blockchain networks to send messages and tokens to each other, forming an interconnected network of chains known as the “Internet of Blockchains.”
🟢Trivia:
The IBC protocol is a key component of Cosmos’ goal to create an ecosystem of interoperable blockchains. It officially launched in March 2021 and supports a wide range of use cases like cross-chain token transfers, shared security, and modular blockchain design. Cosmos Hub and Osmosis are among the most prominent projects utilizing IBC.
Daily Quiz on JUN 20
🟢Quiz Questions:
Cosmos achieves interoperability through:
🟢Choose one correct answer:
・Running all smart contracts solely on Cosmos Hub.
・Requiring every zone to share identical validators by force.
・Merging all chains into one global ledger automatically.
・The Inter-Blockchain Communication (IBC) protocol between zones.
🟢Answer:
・The Inter-Blockchain Communication (IBC) protocol between zones.
🟢Reason for choosing this answer:
Cosmos is designed as a network of independent blockchains (called “zones”) that can communicate with each other through the Inter-Blockchain Communication (IBC) protocol. This protocol enables secure and trustless data and asset transfers between these zones, making Cosmos a leader in blockchain interoperability. The other options are incorrect because Cosmos does not require a single ledger, uniform validators, or limit contracts to the Cosmos Hub.
🟢Trivia:
The IBC protocol was officially launched on the Cosmos network in March 2021. It’s a modular and open-source protocol that can be implemented by any blockchain, not just Cosmos-based ones, as long as they support finality and meet IBC’s technical requirements. This allows for a truly decentralized and scalable ecosystem of interoperable blockchains, often referred to as the “Internet of Blockchains.”
Daily Quiz on JUN 19
🟢Quiz Questions:
Polkadot’s Relay Chain mainly:
🟢Choose one correct answer:
・Supplies off-chain oracle data to smart contracts.
・Processes every user transaction inside each parachain directly.
・Coordinates parachains and provides shared security for them.
・Acts only as a bridge to external networks like Ethereum.
🟢Answer:
Coordinates parachains and provides shared security for them.
🟢Reason for choosing this answer:
The Polkadot Relay Chain is the central component of the Polkadot network. Its primary function is to coordinate the various parachains (independent blockchains running in parallel) and ensure shared security among them. It does not process all transactions within parachains nor is it limited to just bridging to external networks. Oracle data supply is generally handled by specialized parachains or external services like Chainlink.
🟢Trivia:
Polkadot uses a unique consensus mechanism called “Nominated Proof of Stake (NPoS)” and enables interoperability between blockchains through its relay chain and parachain architecture. This makes it one of the most scalable and flexible blockchain ecosystems in the Web3 space.
Daily Quiz on JUN 18
🟢Quiz Questions:
In Polkadot, a parachain is:
🟢Choose one correct answer:
・The name of Polkadot’s default software wallet.
・A special payment channel for off-chain transfers.
・A smart contract that runs on Polkadot’s base layer.
・An independent blockchain connected to the Relay Chain.
🟢Answer:
An independent blockchain connected to the Relay Chain.
🟢Reason for choosing this answer:
In the Polkadot ecosystem, a “parachain” is a full-fledged blockchain that operates independently but is connected to the central Relay Chain. These parachains benefit from the shared security and consensus of the Relay Chain while maintaining their own specialized logic or application use cases. Unlike smart contracts that run on one platform, parachains have their own state, governance, and functionality.
🟢Trivia:
Polkadot was founded by Gavin Wood, a co-founder of Ethereum, and is designed to enable true interoperability between different blockchains. Parachains can communicate with each other through a mechanism called “XCMP” (Cross-Chain Message Passing), allowing them to exchange data and assets seamlessly.
Daily Quiz on JUN 17
🟢Quiz Questions:
Which does NOT enable blockchain interoperability?
🟢Choose one correct answer:
・Cross-chain bridges linking two independent networks together.
・Sharding a single blockchain into multiple parallel shards.
・Standardized protocols like IBC for cross-chain communication.
・Atomic swap contracts exchanging assets trustlessly.
🟢Answer:
Sharding a single blockchain into multiple parallel shards.
🟢Reason for choosing this answer:
Sharding is a technique used to improve the scalability of a single blockchain by splitting it into smaller parts (shards) that can process transactions in parallel. However, sharding does not inherently allow different blockchains to interact or communicate with each other. In contrast, cross-chain bridges, standardized communication protocols like IBC (Inter-Blockchain Communication), and atomic swap contracts are specifically designed to enable interoperability between different blockchain networks.
🟢Trivia:
Blockchain interoperability is essential for a seamless user experience and for building comprehensive decentralized applications. For example, the Inter-Blockchain Communication (IBC) protocol, originally developed for the Cosmos ecosystem, allows blockchains to transfer data and assets among one another without needing to trust a central party—promoting a more connected and versatile blockchain ecosystem.
Daily Quiz on JUN 16
🟢Quiz Questions:
Atomic swaps let users:
🟢Choose one correct answer:
・Exchange assets across blockchains without centralized intermediaries.
・Trade coins instantly on a centralized exchange platform.
・Swap blocks between nodes during node synchronization.
・Split atomic clock signals for blockchain timekeeping.
🟢Answer:
Exchange assets across blockchains without centralized intermediaries.
🟢Reason for choosing this answer:
Atomic swaps are a blockchain technology that enables two parties to exchange cryptocurrencies from different blockchains directly, without the need for a centralized intermediary like an exchange. This is done through a cryptographic technique called “Hashed TimeLock Contracts (HTLCs),” which ensures that either both sides of the transaction complete successfully or neither does. This eliminates counterparty risk and enhances trustless trading across blockchains.
🟢Trivia:
The first successful atomic swap was conducted in 2017 between Decred (DCR) and Litecoin (LTC). Atomic swaps are a foundational component of decentralized exchanges (DEXs) and are considered a major step forward in enabling decentralized, peer-to-peer financial systems.
Daily Quiz on JUN 15
🟢Quiz Questions:
A wrapped token such as WBTC is:
🟢Choose one correct answer:
・A temporary testing token used only on developer testnets.
・A Bitcoin version running on its own private blockchain.
・A token representing Bitcoin on a different blockchain network.
・A coin protected by extra layers of encryption algorithms.
🟢Answer:
・A token representing Bitcoin on a different blockchain network.
🟢Reason for choosing this answer:
A wrapped token like WBTC (Wrapped Bitcoin) is a cryptocurrency that represents Bitcoin on another blockchain, most commonly Ethereum. It is backed 1:1 by actual Bitcoin and enables users to use Bitcoin within decentralized finance (DeFi) ecosystems that do not natively support it, such as Ethereum-based dApps. This wrapping allows Bitcoin holders to access smart contracts and DeFi services while still maintaining the value of Bitcoin.
🟢Trivia:
Wrapped tokens are typically issued by custodians who hold the original asset (e.g., BTC) and mint an equivalent amount of the wrapped token (e.g., WBTC). This method ensures that each WBTC is backed by one BTC in reserve. Wrapped tokens have become essential in enabling interoperability between blockchains, fostering more integrated and functional blockchain ecosystems.
Daily Quiz on JUN 14
🟢Quiz Questions:
Token bridges usually transfer assets by:
🟢Choose one correct answer:
・Doubling token supplies on both chains at once.
・Locking tokens on one chain and minting wrapped tokens on the other.
・Burning tokens on one chain and recreating them on the second.
・Physically copying blockchain files between validator nodes.
🟢Answer:
Locking tokens on one chain and minting wrapped tokens on the other.
🟢Reason for choosing this answer:
Token bridges work by locking the original tokens on the source blockchain and then minting equivalent wrapped tokens on the destination blockchain. This mechanism ensures that the overall supply remains consistent across chains, preventing inflation or duplication. The original tokens are not moved but held securely until the user wants to redeem them by burning the wrapped version.
🟢Trivia:
Wrapped tokens are commonly used to represent assets across different chains. For example, wBTC (Wrapped Bitcoin) allows Bitcoin to be used on Ethereum-based DeFi platforms. These tokens retain the value of the original asset while being compatible with another blockchain’s technical standards.
Daily Quiz on JUN 13
🟢Quiz Questions:
A cross-chain bridge primarily allows users to:
🟢Choose one correct answer:
・Connect servers with physical cables for block transfers.
・Move tokens or data from one blockchain to another chain.
・Accelerate transactions on a single shard within a chain.
・Merge two blockchains into one permanent ledger.
🟢Answer:
・Move tokens or data from one blockchain to another chain.
🟢Reason for choosing this answer:
A cross-chain bridge is specifically designed to facilitate interoperability between different blockchain networks. It allows users to move tokens, assets, or data between chains that typically operate independently. This is crucial for enabling seamless DeFi activities, NFT transfers, and broader blockchain utility across diverse ecosystems.
🟢Trivia:
Popular cross-chain bridges like Wormhole, Stargate, and ChainBridge allow assets like ETH, USDC, and others to move between networks such as Ethereum, Binance Smart Chain, and Solana. However, because they connect distinct chains, they are also targets for exploits—making bridge security a major focus in blockchain development.
Daily Quiz on JUN 12
🟢Quiz Questions:
Which is a benefit of interoperability?
🟢Choose one correct answer:
・Multiple blockchains unite into one flexible ecosystem.
・Consensus mechanisms are no longer required at all.
・Every blockchain becomes fully centralized under one leader.
・Programming languages for smart contracts are removed.
🟢Answer:
Multiple blockchains unite into one flexible ecosystem.
🟢Reason for choosing this answer:
Interoperability allows different blockchain networks to communicate, share data, and work together. This leads to the formation of a cohesive and flexible ecosystem, where assets and information can move freely across multiple blockchains. It enhances scalability, usability, and innovation while preserving the decentralized nature of the networks.
🟢Trivia:
Projects like Polkadot, Cosmos, and Avalanche focus heavily on interoperability. For example, Cosmos uses a “Hub-and-Zone” model to connect different blockchains through its Inter-Blockchain Communication (IBC) protocol, enabling seamless value and data transfer across independent chains.
Daily Quiz on JUN 11
🟢Quiz Questions:
Which is a benefit of interoperability?
🟢Choose one correct answer:
・A single blockchain controls every other blockchain’s activity.
・Blockchain data is stored entirely off-chain for speed.
・All blockchains are forced to use identical codebases.
・Different blockchains can share data and assets across networks.
🟢Answer:
Different blockchains can share data and assets across networks.
🟢Reason for choosing this answer:
Interoperability refers to the ability of different blockchain networks to communicate and interact with each other. This means data and assets can move freely between different blockchains, improving overall efficiency and expanding functionality across ecosystems. The other options describe either centralization, performance trade-offs, or uniformity that are not aligned with the decentralized ethos of blockchain.
🟢Trivia:
One prominent project focusing on interoperability is Polkadot, which allows different blockchains to transfer messages and value in a trust-free fashion. Similarly, Cosmos uses its Inter-Blockchain Communication (IBC) protocol to enable asset and data sharing across independent blockchains. Interoperability is key to building a connected and scalable Web3 ecosystem.
Daily Quiz on JUN 10
🟢Quiz Questions:
What primary utility drives demand for on-chain stablecoins within decentralised finance (DeFi) platforms?
🟢Choose one correct answer:
・Replacing central-bank digital currencies entirely
・Speculative leverage on volatile memecoins
・Providing a low-volatility medium of exchange and collateral
・Paying node-operator costs
🟢Answer:
Providing a low-volatility medium of exchange and collateral
🟢Reason for choosing this answer:
On-chain stablecoins play a critical role in DeFi by offering a stable and predictable value, unlike volatile cryptocurrencies. This stability makes them ideal as a medium of exchange and as collateral in lending and borrowing protocols. Their low volatility is essential for financial instruments and platforms that require price predictability, such as liquidity pools, yield farming, and synthetic asset issuance. This utility underpins much of the DeFi ecosystem’s structure and reliability.
🟢Trivia:
Stablecoins like USDC, USDT, and DAI are the backbone of many DeFi protocols. For example, MakerDAO uses DAI as a decentralized stablecoin backed by crypto collateral. These coins help bridge the gap between volatile crypto markets and real-world use cases, facilitating everything from decentralized lending to automated market making.
Daily Quiz on JUN 9
🟢Quiz Questions:
Which stablecoin had the largest market capitalisation?
🟢Choose one correct answer:
・USDC
・USDT
・USDS
・PYUSD
🟢Answer:
USDT
🟢Reason for choosing this answer:
As of the latest market data, USDT (Tether) holds the largest market capitalization among all stablecoins. It is widely used across global exchanges due to its liquidity, long-standing presence in the crypto ecosystem, and integration across various blockchains like Ethereum, Tron, and others. This dominance makes USDT the most commonly used and recognized stablecoin in crypto markets.
🟢Trivia:
USDT was launched in 2014, making it one of the earliest stablecoins. It is pegged 1:1 to the US Dollar and has grown significantly, often serving as the primary trading pair on many crypto exchanges. Despite controversies over transparency in its reserves, it remains the most traded stablecoin by volume and market cap.
Daily Quiz on JUN 8
🟢Quiz Questions:
Which stablecoin did Circle launch specifically to track the euro rather than the U.S. dollar?
🟢Choose one correct answer:
・XAUD
・XSGD
・TUSD
・EURC
🟢Answer:
EURC
🟢Reason for choosing this answer:
Circle, the company behind the widely used USDC stablecoin, launched EURC (Euro Coin) as a stablecoin specifically designed to be pegged 1:1 to the euro. Unlike USDC, which tracks the U.S. dollar, EURC was introduced to meet demand for a euro-based stablecoin, supporting euro-denominated transactions on blockchain networks.
🟢Trivia:
EURC operates similarly to USDC, with full reserves held in euro-denominated bank accounts to ensure transparency and security. It is issued under a regulated framework and is intended to expand digital asset usage within the eurozone, supporting seamless euro transactions in the Web3 economy.
Daily Quiz on JUN 7
🟢Quiz Questions:
Which term describes a scenario where a stablecoin’s market price falls significantly below its intended peg?
🟢Choose one correct answer:
・Re-staking
・Slippage
・Flash swap
・De-pegging
🟢Answer:
De-pegging
🟢Reason for choosing this answer:
“De-pegging” refers specifically to a situation where a stablecoin loses its fixed value relative to a reference asset (usually the US dollar). This can occur due to various reasons such as loss of trust, insolvency of the issuer, or extreme market conditions. The stablecoin’s value drops significantly below its intended peg, causing disruptions in markets that rely on its stability.
🟢Trivia:
A famous example of de-pegging is the collapse of TerraUSD (UST) in May 2022. Meant to maintain a 1:1 peg with the US dollar, UST fell dramatically in value, triggering a market-wide crash and leading to the loss of billions of dollars in investor funds. This event highlighted the risks associated with algorithmic stablecoins and spurred regulatory interest globally.
Daily Quiz on JUN 6
🟢 Quiz Questions:
In May 2025 the U.S. Senate advanced the GENIUS Act, a bill that specifically targets regulation of:
🟢 Choose one correct answer:
・NFTS
・Proof-of-Work mining
・Decentralised exchanges
・Stablecoins
🟢 Answer:
Stablecoins
🟢 Reason for choosing this answer:
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a legislative proposal aimed at establishing a federal regulatory framework for stablecoins—cryptocurrencies pegged to assets like the US dollar—to ensure consumer protection while fostering innovation in the digital asset space. On May 19, 2025, the US Senate advanced the bill with a 66-32 vote, marking a pivotal step toward crypto regulation.
🟢 Trivia:
Stablecoins are digital assets designed to maintain a stable value by being pegged to a reserve asset, such as the U.S. dollar. They are widely used in the cryptocurrency market for trading, lending, and as a store of value. The GENIUS Act aims to provide a clear regulatory framework for these assets, addressing concerns about consumer protection, financial stability, and illicit activities.
Daily Quiz on JUN 5
🟢 Quiz Questions:
Sky Protocol (formerly MakerDAO) keeps DAI’s dollar peg chiefly by requiring borrowers to:
🟢 Choose one correct answer:
・Burn an equivalent amount of USDS when redeeming
・Lock more crypto collateral than the value of USDS minted
・Stake USDS in Proof-of-Stake validators
・Pay algorithmic re-peg fees directly to Sky Foundation
🟢 Answer:
Lock more crypto collateral than the value of USDS minted
🟢 Reason for choosing this answer:
Sky Protocol, formerly known as MakerDAO, maintains the USDS (formerly DAI) stablecoin’s peg to the U.S. dollar through an overcollateralization mechanism. Borrowers are required to deposit collateral assets exceeding the value of the USDS they wish to mint. This ensures that the system remains solvent even if the value of the collateral declines. If the collateral’s value falls below a certain threshold, the system automatically liquidates the collateral to cover the debt, thereby maintaining the stability of the USDS peg.
🟢 Trivia:
The overcollateralization model used by Sky Protocol (formerly MakerDAO) is a cornerstone of decentralized finance (DeFi). By requiring borrowers to lock in more collateral than the value of the stablecoins they mint, the system reduces the risk of insolvency and helps maintain trust in the stablecoin’s value. This mechanism has been instrumental in the growth of DeFi platforms, allowing users to leverage their crypto assets while contributing to the stability of the ecosystem.
Daily Quiz on JUN 4
🟢Quiz Questions:
Which company issues the world’s largest stablecoin, USDT?
🟢Choose one correct answer:
・Circle
・Tether
・Paxos
・First Digital
🟢Answer:
Tether
🟢Reason for choosing this answer:
Tether Limited is the company that issues USDT (Tether), which is the most widely used and largest stablecoin in the world by market capitalization. While other companies like Circle issue USDC and Paxos issues USDP, it is Tether that is behind USDT. Tether’s USDT is commonly used for trading and transferring value on various cryptocurrency exchanges due to its liquidity and widespread acceptance.
🟢Trivia:
Tether (USDT) was launched in 2014 and aims to maintain a 1:1 peg with the US dollar. It operates on multiple blockchains, including Ethereum, Tron, and Solana, making it versatile and easily integrated into different platforms. Despite controversies over its reserves and transparency, USDT remains the most traded cryptocurrency by volume.
Daily Quiz on JUN 3
🟢Quiz Questions:
The 2022 collapse of which algorithmic stablecoin-governance-token pair erased over $40 billion in market value?
🟢Choose one correct answer:
・FEI / TRIBE
・UST/LUNA
・AMPL/FORTH
・USDN/WAVES
🟢Answer:
UST/LUNA
🟢Reason for choosing this answer:
The UST/LUNA collapse in May 2022 is one of the most infamous events in crypto history. TerraUSD (UST) was an algorithmic stablecoin that maintained its peg to the US dollar via a mint-and-burn mechanism with its sister token, LUNA. When UST lost its peg, the system spiraled as users tried to redeem UST for LUNA, causing hyperinflation of LUNA and a total loss of confidence. This crash wiped out over $40 billion in market value in just a few days, severely impacting investors and leading to regulatory scrutiny worldwide.
🟢Trivia:
The Terra collapse led to a major shift in how algorithmic stablecoins are perceived. Following the event, stablecoins came under intense regulatory focus, and many projects moved towards asset-backed models rather than relying on algorithms alone. The incident also triggered a wave of bankruptcies and losses across the crypto industry, including the collapse of hedge fund Three Arrows Capital and lending platform Celsius.
Daily Quiz on JUN 2
🟢 Quiz Questions:
Which DeFi protocol launched the over-collateralised stablecoin named GHO?
🟢 Choose one correct answer:
・Sky Protocol (formerly MakerDAO)
・Compound
・Aave
・Curve
🟢 Answer:
Aave
🟢 Reason for choosing this answer:
Aave introduced GHO, a decentralized, over-collateralized stablecoin pegged to the U.S. dollar. Users can mint GHO by supplying collateral assets into the Aave Protocol, ensuring that each GHO token is fully backed. This design promotes transparency and stability within the Aave ecosystem.
🟢 Trivia:
GHO is governed by the Aave DAO, allowing the community to vote on key parameters such as interest rates and collateral types. A unique feature of GHO is its integration with Aave’s Safety Module; users who stake AAVE tokens (stkAAVE) can receive discounts on borrowing rates for GHO. Additionally, GHO employs a Stability Module that helps maintain its peg to the U.S. dollar by allowing swaps with other stable assets.
Daily Quiz on JUN 1
🟢Quiz Questions:
PayPal’s U.S. dollar-pegged stablecoin, launched in 2023, is called:
🟢Choose one correct answer:
・GUSD
・PYUSD
・USDC
・XUSD
🟢Answer:
PYUSD
🟢Reason for choosing this answer:
PayPal launched its U.S. dollar-pegged stablecoin named PayPal USD (PYUSD) in August 2023. PYUSD is fully backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents, and is redeemable 1:1 for U.S. dollars. It was introduced to facilitate payments and transfers within the PayPal ecosystem and beyond, leveraging blockchain technology for enhanced financial transactions.
🟢Trivia:
PYUSD is issued by Paxos Trust Company, a fully licensed limited-purpose trust company regulated by the New York State Department of Financial Services. The stablecoin operates as an ERC-20 token on the Ethereum blockchain, allowing for interoperability with various wallets and decentralized applications. In April 2025, PayPal announced a rewards program offering a 3.7% annual yield on PYUSD holdings, aiming to incentivize users and increase adoption of the stablecoin.
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