DFX Finance

<a href="https://dfx.finance/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/dfxfinance" rel="noopener noreferrer nofollow">Twitter</a> | Telegram | <a href="https://discord.dfx.finance/" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://github.com/dfx-finance" rel="noopener noreferrer nofollow">Github</a> | <a href="https://medium.com/dfxfinance" rel="noopener noreferrer nofollow">Medium</a>Today is the official launch of dfxCAD! In this post, we will break down some of the background information and introduce our liquidity mining program for the new <a href="https://curve.fi/factory/102" rel="noopener noreferrer nofollow">dfxCAD/CADC pool</a> on Curve.For context, see our last Medium article, “<a href="https://medium.com/&#64;dfxfinance/exploring-project-x-2883f80b4b5f" rel="noopener noreferrer nofollow">Exploring Project X</a>” where we introduced the underlying reasoning behind this exciting new venture.Alright, let’s break it down.What is dfxCAD?<blockquote>An experimental stablecoin fractionally backed by <a href="https://paytrie.com/cadc" rel="noopener noreferrer nofollow">CADC</a> and deployed on Ethereum.</blockquote>This model was inspired by the <a href="https://frax.finance/" rel="noopener noreferrer nofollow">FRAX protocol</a> which pioneered fractionally backed stablecoins. Their success is a proven track record that the DFX team aims to learn from.<h2 id="header-0">The Code</h2>Rather than forking from FRAX, the smart contract code is written from scratch and is now currently under audit. We believe that our code base is more minimal and lends itself better to our specific plans for the future of DFX.HAECHI has been contracted for an audit of the smart contract code with an expected completion date of April 29, 2022. In the meantime, since the code is UNAUDITED please do not deposit more money than you are willing to lose. Use the protocol at your own risk.<h2 id="header-1">Collateralization Ratio</h2>The initial collateralization ratio will be 95% CADC. The fiat-backed CADC would be used as a stability backstop for dfxCAD.The ratio can also change depending on market conditions. This will be controlled manually by the core team with an extremely conservative approach. Once enough data is collected, we will begin to model a more autonomous system.<h2 id="header-2">Risks</h2>In designing this system, we have tried to learn from similar projects, such as: Iron Finance, Inverse Finance, and Frax Finance. This informed our decision to start with a very slow and manual approach.Re-collateralization, buybacks, and ratio-changing will all (initially) be handled by the DFX core team. A portion of the fees from mint/burn will also go towards providing an emergency backstop treasury.Progressive decentralization and a conservative “watch-and-see” approach is taken here. We want to make sure we gather enough data before automating any of these aspects.The mint/burn functions also depend on a much slower oracle that updates every 6 hours (compared to Frax’s every hour) to mitigate any unforeseen risks.Minting &amp; Burning ExampleDFX users can mint 1 dfxCAD by providing 0.95 CADC and $0.05 CAD worth of DFX tokens (minus fees).DFX users can also burn (or redeem) dfxCAD for its underlying collateral. For example, burning 1 dfxCAD will give you 0.95 CADC and $0.05 CAD worth of DFX tokens (minus fees).The protocol will take a small 0.5% fee for each mint/burn transaction.Minting and burning can be performed on this frontend here: <a href="https://x.dfx.finance/" rel="noopener noreferrer nofollow">https://x.dfx.finance/</a>*If you have any questions about this process, please feel free to request help on our Discord*The CADC and dfxCAD PoolsIn order to create deep liquidity for CADC and dfxCAD, we have created two pools on <a href="https://curve.fi/" rel="noopener noreferrer nofollow">Curve</a> (on Ethereum Mainnet) and liquidity providers will receive liquidity mining rewards for each of these.1) CADC/USDC — <a href="https://curve.fi/factory-crypto/12" rel="noopener noreferrer nofollow">https://curve.fi/factory-crypto/12</a>Currently, you can earn yield on this pool by depositing your Curve LP tokens into Curve, Convex, or Pickle.2) dfxCAD/CADC — <a href="https://curve.fi/factory/102" rel="noopener noreferrer nofollow">https://curve.fi/factory/102</a>Although we would like for this pool to be featured on the same yield aggregators above, more work through governance remains to be done. In the meantime, we will be running our own liquidity mining program…Liquidity Mining Program (for dfxCAD)dfxCAD/CADC LPs on Curve will receive rewards in DFX tokens.✨Rewards will begin Monday, April 25th at 16:00 UTC time.✨In order to earn the rewards, you will need to:<ol><li>Mint some dfxCAD tokens <a href="https://x.dfx.finance/" rel="noopener noreferrer nofollow">here</a>.</li><li>Deposit dfxCAD (and/or) CADC tokens into the <a href="https://curve.fi/factory/102" rel="noopener noreferrer nofollow">dfxCAD/CADC pool</a>.</li><li>Take the Curve LP tokens and stake them <a href="https://x.dfx.finance/stake" rel="noopener noreferrer nofollow">here</a>.</li></ol><h2 id="header-3">Acquiring CADC and DFX</h2>If you need to acquire some CADC tokens, you can swap for it on either <a href="https://curve.fi/factory-crypto/12" rel="noopener noreferrer nofollow">Curve</a> or <a href="https://app.dfx.finance/" rel="noopener noreferrer nofollow">DFX</a>. Make sure to compare between the two for the best prices. Alternatively, if you are resident of Canada, you can also mint CADC directly from the issuer, <a href="https://paytrie.com/" rel="noopener noreferrer nofollow">PayTrie</a>.If you need to acquire some DFX tokens, you can buy them on the open market. The deepest liquidity pool is currently at Sushi: <a href="https://app.sushi.com/swap?chainId&#61;1&amp;outputCurrency&#61;0x888888435FDe8e7d4c54cAb67f206e4199454c60&amp;inputCurrency&#61;ETH&amp;nextInternalLocale&#61;en" rel="noopener noreferrer nofollow">https://app.sushi.com/swap?chainId&#61;1&amp;outputCurrency&#61;0x888888435FDe8e7d4c54cAb67f206e4199454c60&amp;inputCurrency&#61;ETH&amp;nextInternalLocale&#61;en</a>What’s next?As we continue to build out the non-USD stablecoin ecosystem, we plan to build similar products like dfxCAD. In the future, we can potentially leverage ALL of our foreign stablecoin partners and create even more fractionally backed stablecoins (e.g. dfxEUR, dfxSGD, etc.).The message has never been clearer, stablecoins are a lifeline to the cryptocurrency ecosystem and we are focused on bringing ALL stablecoins to the world.Join us!If you are new to DFX Finance, the best way to stay on top of all the latest developments is to follow us on Twitter and join our Discord or Telegram!We are very excited about this next step for DFX Finance, and we look forward to sharing more with you all very soon.Thank you for the support and stay safe!About DFX FinanceDFX is a decentralized foreign exchange (FX) protocol that facilitates the seamless exchange of fiat-backed stablecoins denominated in a growing number of currencies. The current reliance on USD-pegged stablecoins creates undue economic friction for those in other parts of the world,and DFX is here to change that.✨Using a hyper-efficient AMM, optimized for low volatility trading, DFX provides FX swaps with rates that will beat any bank, money changer, or FX platform.&#x1f4b1;We’re super excited to build the FX infrastructure for DeFi and would love to hear more of your ideas and comments on how we can make DFX better together!DFX Finance. Stablecoins for the world.&#x1f310;<a href="https://dfx.finance/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/dfxfinance" rel="noopener noreferrer nofollow">Twitter</a> | Telegram | <a href="https://discord.dfx.finance/" rel="noopener noreferrer nofollow">Discord</a> | <a href="https://github.com/dfx-finance" rel="noopener noreferrer nofollow">Github</a> | <a href="https://medium.com/dfxfinance" rel="noopener noreferrer nofollow">Medium</a>

dfxCAD: The Time is Now. ⌛

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