The next generation of global finance cannot rely solely on USD-pegged stablecoins. A decentralized protocol where users can non-USD stablecoins pegged to various foreign currencies is not only important, but necessary.
DFX is building stablecoins for the world.
Expanding the ecosystem
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 stablecoin stabilized by fiat-backed stablecoins
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.
Reach out on our Discord if you are a stablecoin issuer.
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 be building out and incentivizing undercollateralized stablecoins using a method similar to FRAX. 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.