DFX Finance is a decentralized foreign exchange (FX) protocol optimized for trading fiat-backed foreign stablecoins, (CADC, EURS, XSGD, etc.). You can safely earn yield or use the DFX platform and its contracts to provide true financial localization for the customers of your global business. The next generation of global finance cannot rely solely on USD-pegged stablecoins. A decentralized protocol where users can swap non-USD stablecoins pegged to various foreign currencies is not only important, but necessary.
DFX Finance is keen to create an ecosystem for non-USD stablecoins to thrive and provide value to users all around the world. We will be pushing out products centered around products and integrations for stablecoins of every currency. Products include:
- An AMM optimized for efficient swaps
- Hybrid synthetic stablecoins stabilized by fiat-backed stablecoins (dfxCAD, dfxEUR, dfxSGD).
- More to follow. 😏
An automated market maker (AMM) on Ethereum allows the decentralized exchange of tokens according to a bonding curve. For DFX, this curve will be dynamically adjusted by using real world FX price feeds from Chainlink to ensure that you get the best rates.
Working with stablecoin issuers in foreign countries and their local crypto on-ramps will be necessary to onboard the masses into DeFi. DFX aims to create partnerships with stablecoin issuers around the world and help them bootstrap the usage of their tokens to the world.
We'll also need liquidity providers for the AMM to have enough liquidity. The DFX token will be distributed as an incentive for liquidity providers to supply their liquidity to each of the pools powering the AMM.
DFX will also be building out and incentivizing undercollateralized stablecoins using a method similar to Frax Finance. These synthetic stablecoins will be backed mostly by their fiat-backed counterparts and used as a stability mechanism. The other part of the stablecoin will be collateralized by the DFX token.
Undercollateralized stablecoins provide higher efficiency and enable additional use cases to be built compared to their fiat-backed counterparts.
To learn more about the Liquidity Mining Program, click here.
If you have any other questions, please feel free to join us on Discord or Telegram and ask away!👋
