DFX Finance is an Ethereum-based decentralized cryptocurrency exchange (DEX). However, there's also a version of this exchange on the Polygon network. The platform was launched in 2021 and it focuses on trading fiat-backed foreign stablecoins. The DFX Finance crypto exchange protocol has a dynamically tuned bonding curve, and it uses real-world forex price feeds to optimize conditions for these stablecoins. DFX believes that USD-pegged stablecoins result in market volatility which is why they focus on foreign stablecoins.
Since the DFX Finance cryptocurrency exchange is decentralized, it does not require users to complete the KYC process which would require sharing their personal details to confirm their identity. This is a trustless and permissionless platform. DFX Finance has not disclosed the countries where they are currently providing services. DFX Finance has an application and is therefore compatible with mobile devices as well as all desktops with a web browser.
Markets
The DFX Finance crypto exchange aims to create an ecosystem where non-USD stablecoins can thrive and provide value for users around the world. This platform is an AMM that allows the decentralized exchange of tokens according to a bonding curve. DFX adjusts this curve according to real-world forex price feeds. The DFX Finance trading volume is bound to increase considering that the platform is partnering with stablecoin creators around the world.
The DFX cryptocurrency exchange also plans to create its own synthetic stablecoins. These synthetic stablecoins will be backed by a fiat currency and used as a stability mechanism. They will also have some of the most reliable DFX Finance crypto prices on the market. The benefit of these synthetic stablecoins is that they have more use cases than regular stablecoins.
The DFX Finance crypto exchange has no deposit or withdrawal fees on the Ethereum blockchain. However, the minimum deposit you can make on the exchange is $0.0156504. These rules and DFX Finance exchange fees are different on the Polygon blockchain.
DFX is the native token of the DFX Finance cryptocurrency exchange. The aim of this token is to incentivize liquidity providers into providing liquidity to each of the liquidity pools. This will also in turn help to increase the DFX Finance volume of trades. Holders of this token can also earn other rewards and discounts. There's also veDFX, which is the governance token of the DFX protocol. This token stands for voting-escrowed and is used to incentivize long-term holders who have been with the project for a very long time by providing them with discounts and other rewards. You can obtain veDFX by locking up the DFX token for anywhere between a week and four years. The longer you lock your DFX, the greater the amount of veDFX you will be rewarded in return.
Other Services
The DFX Innovation Zone is a place where DFX Finance launches any new products into its ecosystem. They recently launched their first stablecoin called dfxCAD, which is pegged to the Canadian dollar. The token is currently 95% collateralized with CAD and 5% with DFX tokens. However, the collateralization with CAD will decrease over time based on the trading volume.
The DFX Finance crypto exchange also has an education zone where you can learn everything you need to know about DFX. This zone is currently available in 11 languages, including Chinese, German, Hindi, Spanish, and Turkish, with more languages coming soon. It features various articles on the basics of DFX and liquidity.
About the Company
DFX Finance was launched in 2021 and is a decentralized cryptocurrency exchange that is based on the Ethereum blockchain. The company was founded by Adrian Li and Kevin Zhang. Li has a history of working as a software engineer and tech consultant. He studied both engineering and law. Zhang has a history of working as a blockchain developer and software engineer.
In November of 2022, DFX Finance was the victim of a system hack where they were drained of $4 million. The exchange had put all their contracts on hold after the attack. It is believed that this hack was a result of a lack of proper reentrancy protection. The funds were deposited into TornadoCash.
In February 2023, DFX Finance relaunched as an improved exchange with its DFX V2. The relaunch brought various improvements for smart contracts and security. Users of the v1 version of the exchange had to withdraw their funds from the old pools to join the new ones.
