In this Telegram AMA recap, you’ll find insights about the DFX Finance Foundation project. In an event hosted by SenHo from MEXC Global, you will meet Kevin Zhang (Co-Founder).
Sen Ho : Today, we’re honored to have Kevin Zhang, Co-Founder in our community to give us a more intuitive introduction to their unique project.
Kevin, would you like to say hello and introduce yourself? @kevinzhangTO
Kevin : Hi MEXC community, thanks for having me!
I’m one of the co-founders of DFX, a decentralized forex protocol for stablecoins. I have been in the space since 2015 working previously at ConsenSys and building out fiat on/off ramps in Canada
I started DFX with my cofounders about 1.5 years ago and we’ve built out the best forex trading protocol on the blockchain
Questions from community:
Sen Ho: 1. What is DFX Finance(DFX)? Can you share with us more in detail?
Kevin : DFX is a decentralized exchange specializing in forex trading. We are most often compared to Uniswap and Curve. However, we are a bit more different than Uniswap/Curve as we have a focus on providing the best pricing for stablecoins pegged to different currencies like EURO, CAD, SGD, JPY, IDR, NZD, TRY, etc.
We create pools of liquidity for stablecoins outside of the US dollar and facilitate pricing between the the various currencies. We hope to build out the largest network of non-USD stablecoins and provide institutional forex pricing for everyone.
When you go to your bank or money changer, you normally pay 2-10% to exchange your money to another currency. At DFX the fee is as low as 0.05%, this is like 40x lower than the lowest rates the banks offer to their retail customers
We plan to make our technology available to as many people as possible all over the world so they can save money when exchanging money from one currency to another
Sen Ho: 2. What triggers you to launch DFX Finance? What are some of the real-world problems/ pain points that DFX Finance aims to solve?
Kevin : Many of the core DFX team lives outside of the US. And because of this, we utilize money that isn’t USD. But crypto is mostly denominated in USD stablecoins, which means we always have to convert it to our own currency before we can use it.
To do this, most people either withdraw USDT or USDC as USD and convert it to their own currency or use a local exchange to convert USDT or USDC into their own currency.
During that transaction, the payment processor will charge you a large fee to convert the funds. We want to eliminate the need to use these services and pay high fees to convert your local currency to USD or other currencies.
People also send money around the world very often and have to deal with their banks and pay high fees via wire transfer.
When you send a wire transfer, you normally pay about $50 and FX fees. The FX fees are normally not provided upfront and can be 2-10%. So by the time the recipient get the money, there is usually on average a 5% difference between the amount you sent and the amount they receive.
On top of that, it can take 2-4 days with SWIFT to send a wire transfer and you can never track it. You never know if the recipient even receives the funds.
By using DFX and blockchain technology, we can provide much better pricing, higher transparency and increased speeds to send money around the world
We leverage local payment rails that are usually cheaper and faster to get the money to the right place at a much lower cost by leveraging fiat-backed stablecoins around the world
Sen Ho: 3. What is the role of the $DFX token in DFX Finance? Would you tell us more about its tokenomics?
Kevin : The $DFX token is a governance token used to direct the DFX protocol. It provides the holder the ability to dictate DFX emissions to various DFX liquidity pools and increase/decrease liquidity mining rewards.
There is a total supply of 100,000,000 DFX tokens with a current circulating supply around 22mm. The best way to learn about the emissions and the allocation of the DFX token is to visit our website at https://docs.dfx.finance/protocol/governance/dfx-token
On our website, you will find the various ways we allocate the DFX token and the distribution rates to the various parties involved.
We’re excited to be launching veDFX in the coming weeks which will revamp our tokenomics and provide more value to DFX token holders. The more you stake, the more APY you will receive in the liquidity pools and the more governance power you will receive!
Sen Ho: 4. Are there any exciting news or updates with regards to DFX Finance that you would like to share with the users?
Kevin : As mentioned in the previous answer, we’ll be launching veDFX (vote escrow DFX) which will revamp the tokenomics of the DFX ecosystem.
For those that have dabbled with veCRV, the system is very similar. It allows for users to lock up the DFX tokens between 1 week and 4 years. The longer you lock up the tokens, the more veDFX you get. veDFX is the only token that will be allowed to vote on issues involving the DFX protocol. Therefore only holders than lock up the DFX can dictate where the liquidity mining incentives can go and vote on proposals that ultimately decide on the direction of the DFX protocol.
For the veDFX holders, they also get boosted rewards when they provide liquidity on the DFX protocol, so it is a double win when they lock up their DFX tokens.
We also have DFX v2 launching in the coming weeks. This is an exciting time for us as we continue to leverage our technology to provide the best forex pricing, but we will open it up to other assets outside of stablecoins for the first time. This means in the future, we can have liquidity pools with assets like gold, silver, oil, and any other asset that has an external oracle price feed. This will create new opportunities for the protocol and users that are interested in alternative assets that previously were not available to blockchain/crypto users.
Sen Ho: 5. If you were to summarize your project in ONE word, what would it be? Why?
We have a lot going on right now and we continue to strive to be the best forex market in crypto. People don’t realize how massive the forex market is (it is the single largest traded market in the world) and there’s a huge opportunity to disrupt this with blockchain technology!
Free Asking Segment:
Q1: Collaboration and partnerships are one of the cornerstones to making DeFi more widespread, Can you share some of the partnerships you have formed with existing blockchain foundations recently? – @WhitleyStone
We work with various partners to create a vibrant ecosystem. We cannot do this alone.
We utilize USDC as the main US dollar stablecoin in our ecosystem. Therefore we work closely with Circle to build out our ecosystem. Circle also issues EUROC which is the EURO stablecoin we offer on DFX.
We work closely with Chainlink to get access to real-time FX price feeds to provide pricing data for our DEX.
We work with 1inch to provide routing between any crypto asset to our stablecoins so users can convert not only USDC to the various non-USD stablecoins, but also any altcoin.
We work with numerous stablecoin issuers like Circle, Paytrie, StraitX, Techemynt, Bilira, and GMO to provide the necessary stablecoins that power the exchange.
We work with Telcoin to provide mobile money processing for various remittance corridors
Our early advisors such as Polychain Capital, True Ventures, Defi Alliance, CMS Holdings, Lemniscap, etc. provide a wealth of knowledge and connect us with various organizations.
And many more!
Q2 : Southeast Asia is a very vibrant market and many project developed here so with your project what do you think about Southeast Asia and do you have any plan to develop here? – @TambraEarl
Southeast Asia is a very exciting region we think has huge opportunities.
We currently have stablecoins in SGD and IDR (and NZD). We hope to be able to onboard significantly more stablecoins across that region in Thailand, Vietnam, Philippines, and many more!
To do that, we need to seek out strong stablecoin issuing partners that have robust on/off ramp capabilities. We continue to monitor and strive to provide access in that region
Q3. All platform that use a SWAP mechanism, must affront 2 issues, the low Liquidity ( that cause Big spreads between orders) and Slippages, so can you tell me how you will solve this instrinsic limitations? – @TomokoBarnette
As mentioned before, we utilize a unique oracle-based DEX to power DFX. The oracle-based DEX allows us to be more capital efficient (we can price better trades with less liquidity) and minimize slippage by concentrating liquidity at the oracle provided price. This is the power of DFX and how it differs from Uniswap/Curve.
Q4. We are living in the advent of YIELD FARMING and Liqiudity Mining, can you share your personal opinion on Yield Farming and also Briefly explain your Liquidity Mining Program? – @SharleneRobson
I think yield farming is a great way to bootstrap initial growth. We have our liquidity mining program set to 96 months. This will enable us to build out a sustainable long term plan for DFX during this time. Until then, DFX rewards will be allocated to incentivize liquidity in the protocol.
Q5. How many stable coins does DFX offer..? – @jonapp956
DFX offers 8 stablecoins in our ecosystem right now
USDC, EUROC, CADC, XSGD, NZDS, XIDR, TRYB, GYEN
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