Background Behind Defichain (DFI)
The two co-founders of Defichain, Julian and Yuzen, met in 2016 and worked on a few projects together. They lost touch shortly after, right up until 2019, when they met again and brainstormed what would become Defichain.
Julian has been credited as the leading authority in the crypto and blockchain space and Yuzen was the creator of the first CBDC of the Bahamas, the Sand Dollar. They also co-founded Cake Defy, a highly transparent one-stop solution for lending and staking crypto.
Their mainnet went live on May 11 2020, to coincide with Bitcoin’s third halving event.
Defichain (DFI) Basics
Defichain comes with a new concept called D tokens and these can be minted by anybody on the network.
Decentralised assets are one of the most innovative and revolutionary products of Defichain.
These D tokens are not securities issued by a company or a large institution, meaning they give users price exposure but not ownership voting rights dividends or any other benefit available to stockholders.
Now when it comes to D tokens users are both longer required to deposit at least 50% of the collateral in the form of DFI token. After the fork canning road upgrades Defichain’s native stablecoin dusd is treated the same way as the mandatory 50% DFI in volt with a fixed price of 99 cents. This means that users are no longer required to provide a least 50% of the collateral in the form of DFI when minting new D tokens, now you can mint new d tokens by providing only dusd as collateral if you want, you can then mint your d tokens and take out a decentralised loan you can then use this d tokens loan to trade on the network decks use it for liquidity mining or just hold it as an investment. In order to close your loan and get back your crypto you need to pay back your d token loan with interest and all of this is outlined when taking out the loan to begin with.
Defichain (DFI) Staking
Staking is also a term commonly used in decentralised finance (DeFi) protocols. Instead of securing block production, DeFi staking often refers to locking up tokens within a protocol to achieve a specific goal or result.
Defichain (DFI) Mining
DFI Mining is for users who want long-term profits and sustainability. It is not for people who want instant profits that ultimately cause losses for other users. DFI Mining is not to be confused with other crypto mining.
DeFiChain currently supports tokenized BTC, ETH, USDT, DOGE, LTC, and BCH on the DeFiChain DEX, which enables liquidity mining (yield farming) for these coins.
DFI was founded to improve the decentralised financial ecosystem with a fractional global network allowing digital assets to add accessibility, flexibility, and speed.D token is easily accessible through Defichain wallets. A user can quickly send money around the globe with nominal fees.
Defichain (DFI) Supply
DeFiChain utilises a deflationary emission scheme with the total supply capped at 1.2 billion DFI coins. The emission rate starts with 405.04 DFI per block, with 4.91% going to a ‘community fund’ governed by DFI holders. Over time, the emission rate will decrease by 1.658% every ‘cycle’, which is approximately two weeks. This slow deflation aims to avoid the dramatic ‘halvenings’ like in Bitcoin.
The market capitalization is just short of $1.2 billion at the time of writing, after reaching all-time highs of near $1.8 billion earlier this year.
The current coin distribution across users, masternodes, community funds, and other entities can be seen below. The circulating supply is around $300 million.
Defichain (DFI) Security and Safety
Using Bitcoin as a subsidiary layer for security and mechanism for accomplishing high belief immutability, DeFiChain brings a single-purpose, DeFi only blockchain to the Bitcoin ecosystem. DeFi on Bitcoin is a lot to unpack, and along with the entrance of the long-awaited taproot soft fork, it may be the kind of development that heralds a new era of Bitcoin-based smart contract platforms.
Defichain (DFI) Volatility
DeFiChain (DFI) has been relatively less volatile when compared to other cryptocurrencies. So far, the Decentralised Finance has added 0.38% to $0.620562718.
Review and Final Thoughts on Defichain(DFI)
The DeFi-on-Bitcoin space is at an early exploratory stage, and DeFiChain is one of its early experiments. The multiple theses of tokenizing synthetic assets without a present Perp-like funding rate, the separation of Operators and Opspaces from user spaces, and a fundamental stance of adopting a non-Turing-complete approach are yet to be tested thoroughly. Timing, with regard to the entire space will also have a crucial role to play. Is DeFiChain picking the right moment to introduce the Bitcoin world to the many wonders of DeFi? Or is it a case of too little too late, with Ethereum winning out as the natural home for DeFi? Either way, it looks like DeFiChain will have a lot to say about whether digital-gold-with-wheels can eventually succeed.