General overview on the creation of the first dfxStablecoin, dfxCAD.✨
DFX will be creating a set of stablecoins that are hyper-efficient to open up the ecosystem of hybrid stablecoins. These hybrid stablecoins will be majority collateralized by fiat-backed stablecoins of the same currency as well as a minority amount of DFX tokens.
In the onset, we will launch with our first stablecoin dfxCAD which is a hybrid stablecoin for the Canadian dollar. dfxCAD will start off at 95% collateralized by it's fiat-backed counterpart, CADC and 5% DFX tokens. Based on the peg of dfxCAD, the smart contract can change the collateralization ratio by up to 1% per day. If dfxCAD is trading at a premium, the collateralization ratio of CADC will be decreased. If dfxCAD is trading at a negative premium, the collateralization ratio will be increased.
The lower the collateralization ratio is for the stablecoin, the more efficient it becomes as it requires less of the fiat-backed stablecoin to exist, providing higher utility for the stablecoin.
To produce a robust ecosystem for these stablecoins, UniswapV3 and Curve pools will be deployed between the hybrid stablecoin and the fiat-backed stablecoin to create efficient markets for supply and demand. These markets determine the price of dfxStablecoins and ensure the peg is in order.
dfxCAD / CADC Curve Pool
dfxCAD / CADC Staking Rewards
CADC / USDC DFX Curve
dfxCAD / CADC TWAP
Two articles to give you a better understanding of dfxCAD.
dfxCAD The Time is Now:https://medium.com/@dfxfinance/dfxcad-the-time-is-now-463a206d0536