DFX is a decentralized foreign exchange protocol optimized for trading fiat-backed foreign stablecoins.
The next generation of global finance cannot rely solely on USD-pegged stablecoins. A decentralized protocol where users can efficiently exchange stablecoins pegged to various foreign currencies is not only important, but necessary.
DFX is the protocol for the exchange of foreign stablecoins.
In order to create a global platform for trading fiat-backed stablecoins, several pieces will be required:
An AMM optimized for efficient swaps
Stablecoin issuers (in various countries)
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.